YARMAX ESTATE
How to buy property in Saudi Arabia as a foreigner
The rules of the law in force since 22 January 2026 and the four stages of a purchase: eligibility, the total budget including taxes and fees, registration and ownership. With links to sources and a review date.
Buying in Saudi Arabia
Know the property. Understand every step.
From eligibility to handover: the questions to resolve before making a decision.
The property and your eligibility
Your buyer status, the location and the type of property right available.
Before reserving, check the rules that apply to both the location and the buyer. A property appearing in the catalogue does not, on its own, confirm that a foreign buyer can purchase it.
The contract and total budget
The price, payment schedule, handover date and associated costs.
The current offer should identify the property, finishes, reservation and cancellation terms, payments and each party’s costs. For an off-plan purchase, agreed handover dates and provisions for delays are especially important.
Payments and registration
Verified payment details, proof of payment and registration of your rights.
For off-plan property, check the project licence and its escrow account. Verify payment details against the contract. Registering your rights is a separate required step; transferring money alone does not complete it.
Handover and ownership
Inspection, maintenance, management and how you plan to use the property.
Establish the inspection process, warranty arrangements and ongoing costs in advance. If you intend to let the property, separately check the permitted rental use, management agreement and operating budget.
Questions to resolve early
Can a foreigner buy property in Saudi Arabia?
Yes, within geographical zones designated by the Council of Ministers. The law allows ownership by non-Saudis: individuals resident in the Kingdom or abroad, foreign companies and non-profit organisations. In Riyadh, Jeddah, Makkah and Madinah, ownership is permitted only within the zones set out in the Geographical Zones Document; the zone map, with permitted ownership percentages and types of rights, is published on the Saudi Properties portal. Eligibility depends on the exact address, not just the city. A property appearing in the catalogue does not, on its own, confirm that a foreign buyer can purchase it.
When did the 2026 ownership law take effect?
The Law of Real Estate Ownership and Investment by Non-Saudis took effect on 22 January 2026, replacing the 2000 law. The Council of Ministers approved its Implementing Regulations and the geographical zones on 23 June 2026; they were formally published on 3 July 2026. Ownership applications are submitted through the Saudi Properties portal (saudiproperties.rega.gov.sa).
Who can buy property in Makkah and Madinah?
A non-Saudi individual may own property in Makkah and Madinah only if they are Muslim, whether they live in the Kingdom or abroad. Ownership in these cities is permitted only within approved zones. The law also allows unlisted Saudi companies with foreign shareholders to own there. Eligibility to buy is checked before reservation.
Can an iqama holder buy a home outside the zones?
Yes, one. A non-Saudi legally residing in the Kingdom may own one residential property outside the designated zones, except in Makkah and Madinah. This rule does not give non-residents a right to buy outside the zones.
What does a non-resident need before buying?
A non-resident first obtains a Saudi digital identity through a Saudi mission abroad. Under the Implementing Regulations, a Saudi bank account and a Saudi mobile number are also required before acquiring property. Applications, payments and title issuance go through REGA’s electronic platform linked to the Real Estate Registry, and payments are accepted electronically only.
When is ownership established?
A non-Saudi’s ownership is established only once it is registered with the Real Estate Registry. Reservation, signing and payment are stages in the transaction; they do not replace registration. The process needs to be confirmed for the property and transaction concerned.
How do payments for off-plan property work?
In regulated off-plan projects, buyers’ payments go into a dedicated project escrow account, supervised by REGA through the Wafi platform. Funds are released to the developer on request, subject to approval by the engineering consultant and the auditor. Check the project licence, contract and payment details before paying. Escrow governs how funds may be used; it is not an unconditional guarantee of completion or a refund.
What taxes and costs apply beyond the price?
Allow for applicable taxes and fees, agreed professional services, any fit-out and furnishing, then maintenance, insurance and management. The Real Estate Transaction Tax (RETT) is 5% of the price, subject to exemptions; by default the seller is liable for it. The contract records how transaction costs are shared, but an agreement between the parties does not by itself change who is legally responsible for paying the tax. The RETT first-home relief applies to Saudi citizens only. For non-Saudis in four cities, a REGA fee is added on top. Your total budget needs an individual assessment.
What fee do foreigners pay on top of the 5% tax?
The law allows REGA to charge non-Saudis a fee on dispositions of real rights of up to 5% of the value, in addition to other taxes and fees. Under the Implementing Regulations, the rate is 2% for property in Riyadh, Makkah, Madinah and Jeddah Governorate, and 0% outside those cities and in specified cases such as inheritance or a court ruling. Which party pays the fee should be confirmed before signing the contract.
Does buying property grant residency?
No. Under the law, owning property confers no rights beyond those of the property holder, including no right of residence. Premium Residency for property owners is a separate application under a separate law, with a minimum property value of SAR 4,000,000 and other conditions described in the Premium Residency section of this page.
An introduction to the process. Rates and requirements from the Implementing Regulations are cited from a professional review; their official text is checked before a transaction. The terms and applicable rules for an individual transaction need a separate review.
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