JLL: VAT exemption to create momentum for KSA residential mortgage

JLL: VAT exemption to create momentum for KSA residential mortgage

Saudi Arabia exempted property deals in the Kingdom from the 15% Value Added Tax (VAT), earlier this month, and instead impose a new 5% tax on transactions, helping the residential mortgage market gain momentum, according to JLL's Q3 KSA real estate market performance report.The Saudi government's has also exempted the tax from first-time home-buyers of properties worth up to $ 266,655 (SAR1m), in a move to encourage first time home buyers and support the Vision 2030 goal of increasing homeownership to 60% by the end of 2020 and 70% by the end of 2030."In addition to the positivity injected by the recent government measures, the residential sector also showed strong construction activity in Q3 2020 with around 10,000