Can EU Citizens Buy Property in Saudi Arabia? A Guide for Germany, France, Spain and Italy (2026)

Yes. European Union citizens can buy qualifying property in Saudi Arabia under the Kingdom’s foreign real estate ownership framework. German, French, Spanish and Italian nationals are treated as foreign individual buyers, with no special EU-specific exemption, restriction or accelerated approval process.

However, purchasing property in Saudi Arabia creates obligations beyond the Kingdom’s legal requirements. For Europeans, the most consequential differences often arise at home: German worldwide-income taxation, French real estate wealth tax, Spanish foreign-asset reporting and Italian taxation of overseas property.

The rules also depend on tax residency, not simply citizenship. A German passport holder living in Spain may face Spanish reporting obligations, while an Italian citizen resident outside Italy may fall under a different tax regime.

This guide explains how EU citizens buy property in Saudi Arabia under the 2026 framework and, more importantly, what buyers from Germany, France, Spain and Italy should understand before transferring funds, collecting rent or selling their investments. It is general information, not legal or tax advice.

Quick Facts: Saudi Property Ownership for EU Citizens

Important: These rules primarily apply to tax residents, not automatically to everyone holding the country’s passport. Reporting obligations and tax liabilities are different concepts, and tax treaties can change the final treatment of income.

Can EU Citizens Buy Property in Saudi Arabia Legally?

Saudi Arabia’s updated foreign property ownership framework became effective on 22 January 2026, creating a regulated route for eligible non-Saudi individuals and entities to acquire real estate rights.

Under the law, a non-Saudi individual is broadly someone who does not hold Saudi nationality. EU nationality does not create a separate legal category.

Consequently, buyers holding German, French, Spanish or Italian passports are subject to the same fundamental ownership framework as other non-Saudi individual buyers.

The principal conditions include:

• Property ownership or other approved real estate rights within geographical areas authorised under the law.

• Verification of the particular property’s eligibility and permitted ownership rights.

• Registration through the applicable Saudi property and ownership systems.

• Additional requirements for non-resident buyers, including a Saudi digital identity, a Saudi bank account and a Saudi mobile number.

• Specific restrictions affecting property in Makkah and Madinah.

A foreign individual legally resident in Saudi Arabia may also qualify to acquire one residential property for personal accommodation outside the designated geographical areas, excluding Makkah and Madinah.

That exception does not create a general right for non-resident Europeans to purchase homes anywhere in the Kingdom.

For the full legislative framework, see our guide to the Law of Real Estate Ownership and Investment by Non-Saudis. For a step-by-step overview of the purchase itself, read our complete guide to buying property in Saudi Arabia as a foreigner.

Designated Zones and the Special Rules for Makkah and Madinah

Property eligibility depends on the approved geographical scope, the buyer category and the type of real estate right being acquired.

In June 2026, REGA published the areas open to non-Saudi ownership. They include named districts and projects in Riyadh such as KAFD, Diriyah Gate, New Murabba and Qiddiya; Central Jeddah and Jeddah’s numbered development areas; named areas in Makkah and Madinah; AlUla; NEOM, AMAALA and The Red Sea; and several economic cities and special economic zones. A city appearing on the list does not make every property in it eligible, so each unit must be checked on the official map.

An international investor should never assume that an advertised apartment or villa is eligible merely because the developer accepts overseas enquiries.

The competent authorities must permit the specific transaction, and any limits on ownership percentages, usufruct duration or property use must be satisfied.

Makkah and Madinah have an additional legal distinction.

Under the Saudi law, ownership or other qualifying real estate rights granted to non-Saudi individuals within these cities are limited to Muslim natural persons.

This condition is based on religion, not European nationality.

A Muslim German, French, Spanish or Italian individual may therefore be eligible under the applicable rules, while a non-Muslim individual holding the same nationality cannot obtain direct individual ownership under that provision.

Corporate, investment-fund and other legal arrangements operate under different provisions and must not be presented as automatic substitutes for prohibited individual ownership.

Investors should verify the applicable geographical rules before making a reservation or deposit.

For further location-specific context, see our guide to foreign ownership zones in Jeddah and our guide on how foreigners buy property in Riyadh.

Saudi Property Taxes and Acquisition Costs for European Buyers

Saudi Arabia’s Real Estate Transaction Tax (RETT) generally applies at 5% to taxable real estate transactions.

The rate is established under the Saudi tax framework and applies irrespective of whether the buyer is German, French, Spanish, Italian or another nationality.

However, not every transaction attracts a payable 5% charge: statutory exemptions exist. Legally, RETT is the seller’s obligation, although many contracts shift the cost to the buyer, so agree in writing who pays it.

For example, a taxable purchase valued at SAR 2 million would have a RETT amount of SAR 100,000 before considering exemptions or other relevant adjustments.

Saudi Arabia’s implementing regulations also establish a 2% non-Saudi disposition fee for properties in Riyadh, Jeddah, Makkah and Madinah, as summarised by Greenberg Traurig. The rate is 0% elsewhere unless a specific rule says otherwise.

This is separate from RETT. The fee is linked to a non-Saudi owner’s disposal of property, so for most European investors it is an exit cost on a later sale rather than a charge on the day of purchase.

The 2% charge should not be added automatically to every buyer’s purchase bill; its application depends on the regulated disposition and the responsible party.

Before proceeding, request a written breakdown of transaction tax, applicable disposition fees, registration expenses, brokerage charges and professional costs.

Our guide to real estate taxes in Saudi Arabia provides additional background.

Germans Buying Property in Saudi Arabia: Income Tax and Disclosure

For German buyers asking whether a Saudi purchase creates obligations at home, the central issue is Germany’s taxation of worldwide income.

Germany generally subjects individuals who have a residence or habitual abode in Germany to unlimited income tax liability.

This principle applies to qualifying income arising abroad as well as domestic income, subject to applicable legislation and international tax treaties.

A German tax resident who rents out a Saudi apartment should therefore assess how the rental income must be reported in their German income tax return.

The treatment may involve the rental-income schedule, Anlage V, and international-tax disclosures, depending on the circumstances and any applicable treaty.

Income is not necessarily calculated as gross rent received. Relevant expenses, financing costs, depreciation and other permitted deductions must be assessed under German tax law.

Does Germany Require a Separate Declaration of Foreign Property Ownership?

Germany does not impose a general annual wealth-tax-style declaration merely because an individual owns an ordinary residential property abroad.

That does not mean every foreign property transaction is exempt from disclosure.

Additional reporting may arise for particular cross-border transactions, company structures, foreign business interests or other circumstances.

The property itself, rental activity and any later sale should therefore be reviewed separately.

A buyer who purchases a Saudi apartment for personal use and receives no rent may have a different income-tax position from someone operating several rental units.

German Penalties for Undeclared Foreign Rental Income

Failure to disclose taxable foreign rental income can have serious consequences in Germany.

German fiscal law distinguishes late filing, late payment, inaccurate declarations and intentional tax evasion.

Section 152 of the German Fiscal Code provides rules for late-filing surcharges. Section 238 includes different interest rates for different tax situations, including 1.8% annually for the assessment-interest category under Section 233a.

Other categories may be subject to different interest provisions. Consequently, a universal claim of 6% annual interest or a standard 10–20% surcharge would be misleading.

More seriously, Section 370 of the Fiscal Code provides for fines or imprisonment where criminal tax evasion is established. Particularly serious cases can carry imprisonment of up to ten years.

These are not automatic penalties for every filing mistake.

German buyers should retain rental statements, purchase documents, operating expenses, financing records and evidence of any foreign taxes paid.

The relevant authorities include the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt), Federal Ministry of Finance and the taxpayer’s competent local Finanzamt.

French Citizens Buying Saudi Property: IFI Wealth Tax

For French buyers, the key consideration is often the Impôt sur la Fortune Immobilière (IFI).

IFI is France’s annual real estate wealth tax. A proposal in the 2026 budget debate to turn it into a broader tax on “unproductive” wealth was dropped from the final 2026 finance law, so the existing IFI rules continue.

According to the French tax administration, a household generally becomes subject to IFI when its net taxable real estate wealth exceeds €1.3 million on 1 January of the relevant year.

For individuals fiscally domiciled in France, the calculation can include qualifying real estate situated both in France and abroad.

Consequently, Saudi property can count toward the threshold alongside French residences, rental properties and other international real estate interests.

How Does Saudi Property Affect the French IFI Threshold?

Consider a hypothetical French tax-resident household holding:

• French residential and investment property worth €950,000.

• A Saudi residential property valued at €500,000.

• Eligible outstanding property-related debts of €100,000.

Its illustrative net real estate position would be €1.35 million, before assessing statutory exemptions, valuation adjustments or other applicable rules.

That exceeds the general €1.3 million threshold.

However, crossing the threshold does not mean the entire property portfolio is taxed at one flat rate.

IFI uses a progressive calculation, beginning with taxable wealth above €800,000 once the liability threshold is exceeded.

Published French rates range from 0.5% to 1.5% across the bands, with specific reliefs and reductions potentially available.

The French tax administration requires qualifying taxpayers to report IFI using Form 2042-IFI.

Certain qualifying debts and exemptions may reduce the taxable amount. The main-residence allowance, where applicable, must not automatically be applied to a Saudi investment property.

French Rental Income and Overseas Property

IFI is different from income tax.

A French tax resident receiving rent from Saudi Arabia may separately need to declare foreign-source income.

The French tax administration identifies Form 2047 as an important schedule for reporting qualifying income received abroad, alongside the appropriate domestic tax return.

The treatment of foreign rental income, tax credits and potential double taxation depends on applicable French law and any relevant international agreement.

People who have recently become French tax residents may benefit from a special rule: foreign real estate can be exempt from IFI until the end of the fifth calendar year after the year they became resident.

Before filing, confirm the current threshold, progressive rates and reporting procedure on the official French tax administration website, impots.gouv.fr.

Spanish Citizens Buying Saudi Property: Modelo 720

Spanish residents face one of the clearest property-specific reporting obligations in this comparison, so the Saudi acquisition rules are only the first stage.

Spain’s Agencia Estatal de Administración Tributaria, commonly known as Agencia Tributaria, operates the Modelo 720 foreign assets information declaration.

Modelo 720 covers several categories of foreign assets, including foreign bank accounts, certain financial assets and real estate located outside Spain.

For foreign real estate, a reporting obligation generally arises when the combined reportable value for the relevant property category exceeds €50,000.

This is a category threshold, rather than necessarily a separate €50,000 threshold for every individual property.

When Must Spanish Residents File Modelo 720?

The ordinary reporting window runs from 1 January to 31 March of the year following the relevant reporting year.

A Spanish tax resident acquiring qualifying Saudi property during 2026 would therefore assess the reporting requirement for the corresponding 2027 filing period.

The first declaration depends on the relevant foreign property holdings and applicable exemptions.

After the initial declaration, a new Modelo 720 is not automatically necessary every year.

The general repeat-reporting rule applies where the combined value of the relevant category increases by more than €20,000 compared with the value that triggered the most recent declaration.

Certain transactions, including disposal or termination of reportable property rights, can create separate reporting requirements.

For example, selling a previously reported Saudi property may require a further declaration even if the €20,000 increase condition is not met.

Does Currency Appreciation Trigger Another Modelo 720?

Spanish guidance makes an important distinction concerning foreign property valuation.

The acquisition value is converted into euros according to the applicable reporting rules. Subsequent exchange-rate changes alone are not generally counted as an increase in real estate value when testing the €20,000 repeat-reporting threshold for previously declared property.

This differs from aspects of the reporting treatment of other asset categories.

Spanish buyers should preserve the acquisition agreement, Saudi riyal payment records, euro conversion calculations, ownership documents and eventual disposal records.

Penalties and Spanish Rental Income

Spain’s Modelo 720 penalty regime changed after the Court of Justice of the European Union ruled in 2022 that the earlier sanctions were disproportionate.

Consequently, older online descriptions of extremely large automatic penalties should not be treated as reliable statements of current law.

The buyer should check the current penalty framework directly with Agencia Tributaria.

Modelo 720 is also an information return, not the tax calculation for rental income.

Any rent received from Saudi property must be considered separately under Spanish income-tax rules, along with applicable deductions, foreign-tax treatment and reporting requirements.

A Spanish resident may therefore have both a foreign-property information obligation and a rental-income tax obligation.

Italian Citizens Buying Saudi Property: IVIE and Quadro RW

Italian tax residents must pay particular attention to the Imposta sul Valore degli Immobili all’Estero (IVIE), an Italian tax on qualifying foreign real estate.

For Italian buyers, IVIE can materially affect investment returns.

The standard IVIE rate increased to 1.06% from the 2024 tax year.

Because Saudi Arabia is outside the European Union and European Economic Area, the taxable base is ordinarily the acquisition cost shown in the purchase deed or contract.

Where that information is unavailable, other valuation rules may apply.

The ordinary treatment should not be confused with special cadastral-value rules potentially relevant to qualifying European properties.

How Much IVIE Might an Italian Buyer Pay?

Suppose an Italian tax resident acquires a Saudi apartment with a relevant acquisition value equivalent to €400,000.

Applying the standard 1.06% rate for an entire qualifying year produces an illustrative IVIE amount of:

€400,000 × 1.06% = €4,240

This is not a final tax assessment.

IVIE depends on the proportion of ownership, period of possession, statutory exclusions, possible credits and other relevant conditions.

For example, a genuine main residence may be exempt, although this rarely applies to a foreign home when the owner lives in Italy, and no IVIE is due if the calculated amount does not exceed €200.

Investors should confirm whether exemptions or special rules apply rather than treating 1.06% as an unavoidable charge on every property.

Italy’s Foreign Asset Reporting Requirements

Italian taxpayers holding overseas real estate generally report the relevant assets through Quadro RW in the appropriate individual income tax return or Quadro W in Form 730, depending on the filing route.

These schedules are relevant both to foreign-asset monitoring and calculation of applicable foreign-asset taxes.

The Italian Revenue Agency, Agenzia delle Entrate, provides official instructions for completing these schedules.

Unlike Spain’s Modelo 720 real estate threshold, Italian foreign-property monitoring must not be assumed to begin only when the property exceeds €50,000.

Foreign banking arrangements can also create separate monitoring obligations, depending on account values and the applicable rules.

Rental Income From Saudi Property

An Italian tax resident receiving rent from Saudi property must assess how the income is declared and taxed in Italy.

The fact that money remains in a Saudi bank account does not automatically remove Italian reporting obligations.

Likewise, paying any applicable tax abroad does not necessarily eliminate an Italian declaration requirement.

The amount of Italian income tax, availability of foreign-tax credits and treatment of a later capital gain depend on the relevant domestic rules and any applicable treaty.

Investors should request professional advice before calculating net yields, particularly when IVIE and income tax may both affect the property’s economics.

Why Tax Residency Matters More Than EU Citizenship

When EU citizens buy property in Saudi Arabia, the four countries discussed in this article apply their own tax rules according to domestic residence and liability criteria.

Holding a passport is not necessarily sufficient to determine where a person must declare foreign property or pay tax on international income.

For example, a French national who is genuinely tax resident in Germany may have German reporting obligations rather than the same worldwide IFI exposure as a French tax resident.

Similarly, an Italian citizen living in Spain may need to consider Spanish Modelo 720 requirements, even though the property was purchased using an Italian passport.

Individuals who maintain homes, employment, businesses or family connections in several countries may face more complex residence determinations.

The analysis may involve domestic residence tests, permanent homes, habitual residence, economic connections and applicable treaty tie-breaker provisions.

Before EU citizens buy property in Saudi Arabia, they should establish where they are tax resident and whether that status is likely to change.

Currency Exchange: EUR, SAR and the US Dollar Peg

European investors normally assess their wealth, income and financial commitments in euros.

Saudi real estate transactions, however, are priced in Saudi riyals.

The Saudi riyal is maintained at an official rate of SAR 3.75 per US dollar under the Saudi Central Bank’s exchange-rate policy.

This means European buyers carry exposure to the EUR/USD exchange rate when converting euros into riyals and when converting Saudi investment proceeds back into euros.

Even if the property’s Saudi riyal price remains unchanged, its euro value can rise or fall as exchange rates move.

For example, an investor buying a property for SAR 1.5 million should model both favourable and unfavourable EUR/SAR movements before calculating the amount ultimately recovered in euros.

Transaction costs also matter. Bank exchange spreads, transfer charges and conversion fees may reduce the effective investment return.

Maintain records of the actual exchange rate applied on each payment date, especially where home-country tax reporting requires amounts to be expressed in euros. Our guide to return on real estate investment in Saudi Arabia explains how to measure yields before currency effects.

Transferring Money From Europe to Saudi Arabia

International buyers should establish their banking arrangements before signing a purchase agreement.

Saudi Arabia’s implementing regulations require non-resident foreign individual buyers to satisfy specified requirements, including an accepted digital identity, a Saudi bank account in their name and a Saudi telephone number linked to that identity.

The regulations also require financial transactions connected with non-Saudi property rights to use approved electronic payment methods.

Before transferring funds, buyers should confirm the receiving account, beneficiary identity, title-registration process and contractual payment milestones.

Banks may request evidence of the source of funds, income, business proceeds, savings or the sale of other investments.

European anti-money-laundering requirements and Saudi banking compliance may both be relevant.

A well-documented transfer helps establish the property’s acquisition cost and provides an audit trail for later tax declarations.

Avoid informal payment arrangements or transferring acquisition funds to an unverified third party. Investors buying through a company should also read our foreign company property ownership guide, as corporate buyers face separate registration and disclosure rules.

Double Taxation: Check the Treaty That Actually Applies

An international property investment can create tax obligations in more than one jurisdiction.

Saudi transaction taxes and disposition fees are not necessarily equivalent to European income taxes or annual wealth taxes.

Foreign tax relief therefore depends on the precise tax involved, the income or asset category and the applicable legislation.

The current status and scope of Saudi Arabia’s tax treaties with Germany, France, Spain and Italy must be independently confirmed for the investor’s particular situation.

Do not assume that a treaty exists, applies to the relevant taxpayer, or covers both income and wealth taxes.

Even where a treaty is applicable, separate rules may govern rental income, capital gains, property-related taxes and reporting obligations.

A treaty may allocate taxing rights or provide relief from double taxation without eliminating domestic disclosure requirements.

A qualified cross-border tax adviser should verify the current treaty text, amendments, effective dates and relevant domestic implementation before calculating relief.

Does Owning Saudi Property Create Saudi Tax Residency?

Buying a property does not automatically make a European investor a Saudi tax resident.

Property ownership, immigration residence and tax residence are separate legal questions.

An individual may own a Saudi apartment while continuing to live and work in Germany, France, Spain or Italy.

Similarly, receiving permission to reside in Saudi Arabia does not automatically terminate tax-resident status elsewhere.

Home-country rules may continue to apply because of a retained residence, habitual abode, family relationships or other relevant connections.

Moving between jurisdictions should therefore be planned with attention to both immigration and tax law.

Investors should avoid assuming that foreign property ownership eliminates their existing reporting obligations or provides automatic tax advantages.

Can EU Citizens Get Saudi Residency Through Property?

Ownership and immigration are separate. Buying a home does not grant residency, but Saudi Arabia’s Premium Residency programme includes a Real Estate Owner product for buyers of completed, unmortgaged residential property worth at least SAR 4 million, confirmed by an accredited valuation. The residency lasts as long as the qualifying property is held.

For European investors, this can be attractive for a second base in the Gulf, but it does not end tax residence at home. A German, French, Spanish or Italian national who obtains Saudi residency but keeps a home or family in Europe may remain tax resident there. Our guide to buying property in Saudi Arabia with residency explains the options.

Compliance Checklist Before Buying Property in Saudi Arabia

A European investor should complete the following checks before signing a binding purchase agreement:

1. Confirm Saudi ownership eligibility. Verify the buyer category, geographical area, permitted ownership rights and property-specific restrictions.

2. Establish tax residency. Identify the country responsible for taxing worldwide income or property assets under the applicable rules.

3. Review domestic reporting obligations. Check Germany’s foreign-income treatment, France’s IFI, Spain’s Modelo 720 or Italy’s Quadro RW/W and IVIE.

4. Calculate acquisition expenses. Account for Saudi RETT, any applicable disposition fee, registration costs, professional fees and currency conversion.

5. Verify property title. Confirm the seller’s legal authority, registered rights, encumbrances and transfer documentation.

6. Obtain banking clearance. Confirm the permitted payment method, receiving account and source-of-funds evidence.

7. Evaluate treaty treatment. Have a tax adviser check any applicable treaty and available double-taxation relief.

8. Prepare annual reporting records. Retain acquisition documents, valuations, rental agreements, operating expenses and bank statements.

9. Model the investment’s exit. Consider eventual sale, currency movements, taxable gains and any change in personal tax residence.

10. Recheck official guidance before filing. Rates, exemptions, tax forms, deadlines and administrative interpretations may change.

For practical purchase due diligence, see our essential tips for buying property in Saudi Arabia and our guide on how to verify property ownership before buying in Saudi Arabia.

Conclusion

So, can EU citizens buy property in Saudi Arabia? Yes: German, French, Spanish and Italian citizens can purchase qualifying Saudi real estate under the same foreign-buyer framework that applies to other non-Saudi individuals.

The greater distinction lies in their continuing financial obligations at home.

German tax residents must consider foreign rental income and disclosure rules. French residents may face IFI on worldwide net real estate wealth. Spanish residents should assess Modelo 720 reporting, while Italian residents must evaluate IVIE and foreign-asset declarations.

The most effective investment strategy combines Saudi property-law due diligence with an assessment of the buyer’s actual tax residency, financing arrangements and long-term plans.

For European investors, buying the right property is only the beginning; understanding the cross-border obligations is what makes the investment sustainable.