Everything You Need to Know About Buying Property in Saudi Arabia as a Foreigner
Saudi Arabia is reshaping its real estate landscape under the transformative Vision 2030 agenda. With bold economic diversification underway, 2025 marks a landmark year for foreign investors interested in Saudi residential property. The Kingdom has introduced progressive reforms, opened key markets, and established transparent legal pathways—making it easier than ever for international buyers to own property in one of the region’s most dynamic economies.
Legal Framework: What Foreigners Need to Know
Historically, property ownership in Saudi Arabia was heavily restricted for non-Saudis. However, a series of legal reforms have changed the game. Foreigners can now own property in most regions of the Kingdom. However, ownership remains restricted in Makkah and Madinah, where foreign nationals are only allowed indirect investment—up to 49% in public companies that own real estate there.
Foreign nationals can apply for Premium Residency, which allows them to live, work, and own property without a local sponsor. Permanent residency requires SAR 800,000 (approx. £170,000), while renewable annual residency costs SAR 100,000 per year (approx. £21,000).
Expatriates with valid Iqama (residency permits) are allowed to own one residential property for personal use. Foreigners can also invest indirectly in Makkah and Madinah through shares in public companies, with a 49% ownership cap. All property transactions must be recorded through the Ministry of Justice’s digital platform for legal transparency and fast processing.
Investor Snapshot: Real-Life Example
Case Study: James from the UK
James, a UK-based consultant, secured Premium Residency in 2024. He purchased a luxury villa in Riyadh through a Vision 2030 Saudi Arabia Enters the Tokenized Real Estate Marketmega-development and experienced a 12% appreciation in property value within 18 months. He now rents the villa long-term, generating passive income while enjoying full residency benefits.
Top Locations for Residential Investment
Riyadh is experiencing rapid expansion, supported by infrastructure upgrades, the relocation of corporate HQs, and growing demand for urban housing. Several master-planned communities backed by PIF are under development.
Jeddah, situated along the Red Sea and near Makkah, combines coastal lifestyle appeal with strategic location benefits. Modern infrastructure and tourism links are attracting investors.
Dammam and the Eastern Province are strong economic zones with long-term residential communities close to energy and industrial hubs. Their proximity to Bahrain adds value.
Giga Projects like NEOM, AMAALA, and the Red Sea are futuristic developments featuring eco-luxury villas, smart communities, and zero-carbon living. These areas offer significant opportunities for long-term investment.
Residential Ownership Process in Saudi Arabia
Foreign investors start by determining their eligibility through Iqama or Premium Residency. They must ensure the property is in a zone approved for foreign ownership. Next, they connect with licensed real estate agents or developers to compare ROI potential, location, and development timelines.
Legal due diligence is essential—this includes verifying land titles, zoning regulations, and ownership history. Investors are advised to work with local legal representatives to navigate the legalities.
Financing options are available, especially for Premium Residency holders. Some banks and developers offer mortgage plans or in-house payment structures. Once a property is selected, a Sale and Purchase Agreement (SPA) is drafted, signed, notarised, and digitally registered.
Investors must settle the 5% Real Estate Transaction Tax (RETT), and often pay 2–3% as agent commission. Legal services, valuation, and other fees may apply. The ownership is registered through the Ministry of Justice’s e-platform to ensure full legal compliance.
Understanding Costs and Ongoing Fees
Real Estate Transaction Tax (RETT) is 5% of the purchase price and paid by the buyer. Agent commissions are typically 2–3% and are negotiable. Legal and registration fees vary depending on the transaction.
Maintenance and community fees differ by development, especially in gated or branded communities. Utilities, municipality charges, and home insurance are other ongoing costs that should be factored in.
Benefits of Buying Property in Saudi Arabia
Foreign investor enjoy 100% freehold ownership in approved zones, with no personal income or capital gains tax on rental income. Premium Residency grants long-term living rights, access to mortgage options, and entry into high-growth markets like Riyadh and NEOM.
The legal framework, backed by digital registration and government oversight, ensures transparency and investor security. Investors can own luxury villas, smart homes, or branded residences in strategic developments.
Frequently Asked Questions
Can foreigners buy property anywhere in Saudi Arabia?
No. Makkah and Madinah are limited to indirect ownership through public company shares.
Can I own multiple properties?
Yes, if you hold Premium Residency. Iqama holders are typically limited to one residential unit.
Can I lease my property?
Yes. Foreign owners are allowed to lease their property for long-term or corporate rentals.
Are mortgages available to expats?
Yes. Many Saudi banks now provide mortgage products to qualified expats and Premium Residency holders.
How long does it take to complete a property purchase?
It generally takes 30–60 days, depending on legal documentation, financing, and registration.
Can I buy off-plan units?
Yes. Many developers offer off-plan properties with phased payment terms, particularly in Riyadh and Jeddah.
Market Outlook for 2025 and Beyond
Saudi Arabia’s residential real estate market is poised for continued growth. With Riyadh’s population expected to double by 2030, housing demand will increase substantially. Analysts forecast a 20% growth in the residential sector over the next five years.
The government’s efforts to digitise property services, improve transparency, and expand foreign participation have created a robust platform for long-term investment. Vision 2030 continues to drive demand through its mega-projects and regulatory reforms.
Final Takeaway for Global Investors
Saudi Arabia is now one of the Gulf’s most open and well-regulated property markets. It offers full foreign ownership in approved areas, zero income tax, high rental yields, and access to futuristic developments. Whether you’re buying a second home or building a portfolio, the Kingdom offers long-term value and stability.
📩 Need help or personalised advice? Contact us directly at Real Estate Saudi and start your real estate journey today.
