Complete Guide

Foreign Property Ownership in Saudi Arabia 2026

Everything you need to know about buying real estate in Saudi Arabia as a foreign investor under the new 2026 ownership law.

Jan 2026

Law Effective Date

Transaction Tax (RETT)

Annual Property Tax

SAR 4M

Premium Residency Threshold

The 2026 Foreign Ownership Law

Starting January 1, 2026, Saudi Arabia has officially opened its real estate market to foreign investors under the amended Non-Saudi Real Estate Ownership and Investment Law. This landmark reform allows non-residents to purchase property without living in the Kingdom, marking a historic shift in Saudi Arabia's investment landscape.

Key Changes:

Non-resident foreigners can now purchase property without residing in Saudi Arabia
Full freehold ownership is permitted in designated zones and giga-projects
Companies, investment funds, and non-profit organizations are eligible
No requirement to link property purchase to economic activity

Where Foreigners Can Buy

Foreign ownership is permitted in designated zones approved by the Council of Ministers. These include major metropolitan areas, economic zones, and Vision 2030 giga-projects.

Location	Property Type	Foreign Ownership
NEOM, Red Sea, Amaala	All Types	100% Freehold
Riyadh (Designated Zones)	Commercial	Permitted
Jeddah (Designated Zones)	Commercial	Permitted
Makkah & Madinah	All Types	Restricted (Non-Muslims)

Important Note

Residential ownership in main city areas of Riyadh and Jeddah is currently excluded for foreigners. The most straightforward path for residential purchase is within giga-projects like NEOM, which offer full freehold rights.

Costs & Tax Structure

Saudi Arabia offers a favorable tax environment for property investors. Here's a breakdown of the costs you should budget for:

Cost Type	Amount	Frequency
Real Estate Transaction Tax (RETT)	5% of property value	One-time
Additional Transfer Fee (Non-Saudis)	Up to 5%	One-time
Registration & Legal Fees	2-5%	One-time
Annual Property Tax	None	-
Income Tax on Rental	0%	-

Total Upfront Costs

Budget approximately 10-15% on top of the property purchase price for all transaction costs. The absence of annual property tax and income tax on rental earnings makes Saudi Arabia highly competitive compared to Western markets.

Premium Residency Program

Saudi Arabia's Premium Residency program offers permanent residency to foreign investors who meet certain investment thresholds. Real estate investment is one of the qualifying pathways.

Investment Threshold

SAR 4 Million

~$1.07 Million USD

Residency Type

Permanent

Renewable indefinitely

Benefits Include:

Permanent residency for you and family
Right to own property and businesses
Access to Saudi banking services
No sponsor (Kafeel) required
Freedom to travel in and out
Access to education and healthcare

The Purchase Process

Verify Eligibility & Select Location

Confirm you can legally purchase in your desired location. Identify designated zones or giga-projects that permit foreign ownership.

Engage Local Experts

Partner with a licensed Saudi real estate lawyer and property agent. This is essential for navigating the legal framework.

Obtain Approvals

Your lawyer will help secure necessary approvals through the Ministry of Interior and the Absher platform.

Conduct Due Diligence

Perform a thorough title search through the local Sharia Court and verify zoning regulations.

Sign & Register

Execute sale agreements and register ownership with the Real Estate General Authority (REGA).

Complete Payment

Transfer funds through a certified Saudi bank to finalize the transaction.

Ready to Start Your Investment Journey?

Our team of experts will guide you through every step of the process, from property selection to final registration.

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