Buying property in Saudi Arabia as a foreigner

Since 22 January 2026, a new law lets non-Saudis own real estate in Saudi Arabia, under tighter rules than in Dubai. Ownership is mostly limited to approved zones, and the zone list was only published in June 2026. If you sell to foreign clients, here is what you need to know.

The short version

1. The Non-Saudi Real Estate Ownership Law took effect on 22 January 2026. It replaced the 2000 law.
2. Residents, non-residents and foreign companies can buy, mainly inside zones approved by the Council of Ministers.
3. A legal resident may also own one home for personal use outside the zones, except in Makkah and Madinah.
4. In Makkah and Madinah, individual non-Saudi buyers must be Muslim.
5. Everything goes through REGA’s Saudi Properties portal.
6. Budget for the 5% Real Estate Transaction Tax and a separate fee on non-Saudi deals in the four main cities.

Who qualifies

• Residents (Iqama holders) apply with their Iqama number. Eligibility is checked automatically.
• Non-residents first get a digital identity through a Saudi embassy or consulate. They also need a Saudi bank account and a linked Saudi mobile number. They can only buy inside zones.
• Foreign companies with no presence in the Kingdom register with the Ministry of Investment (MISA) and get a unified number starting with 700. They must disclose their direct and indirect owners and appoint a representative with a Saudi identity.
• Saudi companies with foreign shareholders can own inside the zones. Outside them, they need MISA approval, and only for business use or staff housing.
• GCC nationals keep their existing rights.

The zones

The Council of Ministers approved the implementing regulations and the Geographic Zones Document on 23 June 2026. Press reports count 9 zones in Riyadh, 57 in Jeddah, 12 in Makkah, 10 in Madinah and 17 in AlUla. REGA publishes the official map at saudiproperties.rega.gov.sa/zones.

• Riyadh zones are mostly large state-backed projects: Qiddiya, New Murabba, Diriyah Gate, King Salman Park, KAFD, Sedra, the Sports Boulevard and the King Salman International Airport area, plus one transit-oriented development site. REGA has said Riyadh’s list may grow, without a date.
• Jeddah has a wider list: the city centre plus dozens of development zones, including coastal projects.
• Each zone sets which right is available (full ownership, usufruct or another right) and may cap the share foreigners can hold.

Makkah and Madinah

The law limits individual non-Saudi ownership in the two holy cities to Muslim natural persons. The resident home exception does not apply there. According to Enterprise, Saudi companies with foreign shareholders can buy in the approved zones, with foreign ownership capped at 49% of the company and 5% per foreign shareholder. Foreign companies incorporated abroad are excluded.

The process

1. Create a digital identity (or register the company with MISA).
2. Open a Saudi bank account in the buyer’s name.
3. Check that the property sits inside a zone, or qualifies as the resident’s single home.
4. Submit the application on Saudi Properties, which links to the Real Estate Registry.
5. Pay electronically. Cash is not part of the process.
6. The title deed is issued through the same platform.

The platform does not arrange mortgages. Financing stays with SAMA-licensed banks.

Taxes and fees

• Real Estate Transaction Tax (RETT): 5% of the value, never below fair market value. ZATCA states the seller pays it, before or during the transfer. A contract can shift the cost, so read it.
• Non-Saudi disposal fee: the law allows up to 5%. The regulations set 2% for deals in Riyadh, Jeddah, Makkah and Madinah, and 0% elsewhere. Who pays is agreed between the parties.
• Property sales are exempt from VAT.

Penalties

A violation can bring a fine of up to 5% of the property value, capped at SAR 10 million. Giving false information to buy can also lead to a court-ordered sale.

What a broker must explain

• Whether the unit is inside a zone, and which right the zone allows.
• Which buyer category the client is in, and what that category allows.
• That a resident can own only one home outside the zones.
• The religious condition in Makkah and Madinah.
• The full cost: price, 5% RETT, 2% fee where it applies, and your commission.
• That an Iqama does not come with the purchase. Premium Residency is a separate application.

The zones and fees are new and may change. This guide was checked on the date shown above. Always confirm on Saudi Properties before a client pays anything. CloserPass is not affiliated with REGA.

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