Saudi's 'Sakani' to bear VAT for citizens’ first residence digitally

Published: 5 May 2020 - 9 a.m.

Saudi Arabia’s Ministry of Housing has added a service to its ‘Sakani’ programme’s electronic application for smartphones, which enables Saudi citizens to register for the state to bear the value-added tax of their first residence, and receive the ‘tolerance certificate’ electronically.

The state bears the value-added tax for the first residence to an extent of $11,310 (SAR42,500), representing a tax of 5% of a residence priced at $226,225 (SAR850,000), according to the state-run Saudi Press Agency.

The Sakani programme aims to serve Saudi nationals around the clock through digital solutions that facilitate registration for housing options and financing solutions, among other initiatives. The application for Saudi families can be downloaded online.

Saudi Arabia’s Ministry of Housing aims to increase residential ownership among its citizens to 70% by 2030. More than 57 housing projects at various stages of construction are being developed in various regions of the kingdom.

The programme provides Saudi nationals with access to residential plots, self-construction residential housing, prefabricated housing units, and under construction housing units, among other options.

The Sakani website and application also reviews residential lands, apartments, villas and townhouses at prices ranging from $66,526 (SAR250,000) to $199,578 (SAR750,000).

The digital platforms provide details of the location, features, and prices of the residential units available for immediate and electronic reservation within 75 projects that provide access to approximately 134,000 units.

The Ministry of Housing has issued about 215,098 certificates bearing VAT for the first residence of citizens who applied on the electronic portal, since the initiative's launch.

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