Can Foreigners Own Property in Saudi Arabia? 2026 Guide

Yes. Foreign individuals, foreign companies and certain Saudi entities with non-Saudi ownership can acquire real estate or other legally recognised property rights in Saudi Arabia.

However, foreign ownership is not unrestricted. Eligibility depends on:

• The legal category of the buyer

• The property’s precise location

• The geographical scope approved for foreign ownership

• The type of property right offered

• The property’s registered use

• Completion of the required identity, banking and regulatory procedures

• Registration of the acquired right in the Real Estate Registry

The updated Law of Real Estate Ownership by Non-Saudis entered into force on 22 January 2026. It replaced the previous ownership law and introduced a more structured framework for resident and non-resident individuals, foreign companies, Saudi companies with non-Saudi shareholders, investment vehicles and other qualifying entities.

The law authorises the Council of Ministers to determine the geographical areas where non-Saudis may acquire property, the types of rights available, maximum foreign ownership percentages and maximum permitted usufruct periods. This means that a property’s city alone does not establish whether it can be purchased by a foreign buyer.

Regulatory Warning: A listing described as “freehold,” “foreign ownership approved” or “available to international buyers” is not sufficient legal proof. The exact property, project and property right must be checked against the official geographical-scope system and the Real Estate Registry before a binding payment is made.

Buyers requiring a broader explanation of contracts, financing and purchase procedures should also read our guide to buying property in Saudi Arabia as a foreigner.

Saudi Foreign Property Ownership Rules at a Glance

What Changed Under the 2026 Non-Saudi Property Ownership Law?

The updated law created a wider but controlled route for foreign participation in the Saudi real estate market.

Under the previous framework, foreign ownership was more limited and often depended on narrow permissions or specific investor circumstances. The new law expressly recognises several categories of non-Saudi buyers and links ownership to detailed geographical scopes.

The updated law applies across Saudi Arabia but does not create an unlimited national freehold market. REGA’s official guidance confirms that the geographical-scope document determines where ownership is available, the maximum ownership percentage, the permitted property rights and the maximum term of usufruct.

Who Can Buy Property in Saudi Arabia?

The legal process is different for a resident buying a personal home, a non-resident investor, a foreign company and a Saudi company with foreign shareholders.

Foreign Individuals With Saudi Residency

A legally resident non-Saudi individual may acquire qualifying real estate within the geographical scopes approved for foreign ownership.

The law also recognises a separate personal-residence route. A legally resident non-Saudi may generally own one property for personal residential use outside the designated geographical scopes, except in Makkah and Madinah, subject to the implementing rules.

This personal-residence exception should not be interpreted as a general right to acquire unlimited investment properties outside approved areas. The property must genuinely fit the applicable residential route.

Non-Resident Foreign Individuals

A foreign individual does not necessarily need to live in Saudi Arabia before acquiring a qualifying property right.

A non-resident buyer must generally complete the prescribed Saudi digital identity and financial setup before registration. This can include:

1. Obtaining an approved digital identity

2. Obtaining a Saudi mobile number connected to that identity

3. Opening a Saudi bank account in the buyer’s name

4. Completing source-of-funds and identity checks

5. Submitting the transaction through the authorised electronic process

6. Registering the acquired right in the Real Estate Registry

The ability to enter Saudi Arabia as a visitor does not itself establish property eligibility. The property must still fall within a scope available to that buyer category.

Foreign Companies

A company incorporated outside Saudi Arabia may acquire qualifying property or another right in rem after completing the required registration process.

A foreign company may need to:

• Register with the Ministry of Investment

• Disclose its direct and indirect owners

• Identify its ultimate beneficial owners

• Appoint an authorised Saudi-recognised representative

• Open a corporate Saudi bank account

• Provide authenticated corporate documents

• Demonstrate the purpose of the proposed acquisition

• Confirm that the property lies within an eligible geographical scope

The law expressly requires non-Saudi companies and certain other non-Saudi entities to register with the relevant authority before acquiring real estate.

Saudi Companies With Non-Saudi Shareholders

A Saudi company incorporated under the Companies Law and owned partly or wholly by non-Saudis may acquire qualifying property within approved geographical scopes.

The law also provides routes for such companies to acquire property necessary for their registered activities or employee housing outside certain scopes, subject to the implementing regulations and relevant approvals. Different rules apply in Makkah and Madinah.

Listed Companies, Investment Funds and Special-Purpose Entities

Saudi-listed companies, licensed investment funds and special-purpose entities are governed through the Capital Market Law, its implementing regulations and controls issued by the Capital Market Authority in coordination with REGA.

A foreign investor buying units or shares in such a vehicle is therefore following a different legal route from an individual purchasing a title directly.

Diplomatic Missions and International Organisations

Accredited diplomatic missions may acquire official premises and residences where the reciprocity and approval requirements are satisfied.

International and regional organisations can also acquire official premises where permitted by their governing agreements and the relevant Saudi authorities.

Resident vs Non-Resident Foreign Buyers

Regulatory Warning: A valid Iqama does not make every Saudi property legally available to a foreign resident. Residency eligibility and property eligibility must be checked separately.

Where Can Foreigners Buy Property in Saudi Arabia?

Foreign ownership is controlled through geographical scopes approved under the law.

The scope applicable to a property may specify:

• The precise neighbourhood, project or plot

• Which buyer categories are eligible

• The maximum percentage of foreign ownership

• Whether full ownership is available

• Whether only usufruct or another right is available

• The maximum usufruct period

• Permitted property uses

• Additional transfer or resale conditions

The exact ownership status should therefore be checked through the official mapping and registration system. REGA states that the geographical-scope framework controls the permitted locations, ownership limits, available rights and maximum usufruct duration.

Our guide to foreign ownership zones in Saudi Arabia explains how buyers should interpret location-based eligibility.

Can Foreigners Buy Property in Riyadh?

Yes, foreign ownership is available in approved areas of Riyadh.

However, this does not mean that every Riyadh neighbourhood, development or land parcel is open to the same categories of foreign buyer.

The exact property must be checked for:

• Foreign-buyer eligibility

• Permitted property use

• Available property right

• Maximum foreign ownership percentage

• Applicable resale restrictions

• Real Estate Registry status

Investors evaluating offices, shops, warehouses or income-producing assets can also review commercial real estate in Riyadh.

Can Foreigners Buy Property in Jeddah?

Yes, qualifying foreign individuals and companies can acquire property rights in approved areas of Jeddah.

A buyer should not rely on a developer stating only that a project is “in an approved city.” Eligibility must be confirmed for the specific project and property.

The ownership right may also differ between developments. One project may offer full registered ownership, while another may offer a long-term usufruct right.

Can Foreigners Buy in Other Saudi Cities?

The new law is not limited to Riyadh and Jeddah.

Approved geographical scopes can include other cities, regions and developments across Saudi Arabia. The legal position should be checked using the latest official scope information rather than a static list in an older article.

Regulatory Warning: A city being included in the national foreign ownership framework does not mean every property within that city can be acquired by every non-Saudi buyer.

Can Foreigners Own Property in Makkah and Madinah?

Foreign ownership in Makkah and Madinah is governed by special restrictions.

Under the updated framework, a non-Saudi natural person must be Muslim to acquire a permitted property right in either holy city. The acquisition must also fall within an approved geographical area and comply with the applicable conditions.

It is therefore inaccurate to make either of the following blanket statements:

• That every foreign individual can buy anywhere in Makkah or Madinah

• That all non-Saudi ownership is completely prohibited in both cities

The correct position is more specific:

• Muslim non-Saudi individuals may acquire permitted rights in approved areas.

• Saudi companies with non-Saudi shareholders can follow the corporate ownership framework.

• Listed companies, investment funds and special-purpose entities follow applicable capital-market controls.

• The available right and ownership percentage depend on the approved geographical scope.

• A resident’s one-home exception outside approved scopes does not apply in Makkah or Madinah.

What Property Rights Can a Foreigner Acquire?

The law recognises full ownership and other rights in rem.

Full Ownership

Full ownership gives the buyer the recognised ownership right over the property, subject to registered restrictions, easements, zoning and applicable laws.

A buyer should confirm that the transaction transfers full ownership rather than merely providing possession, occupancy or a contractual right to use the unit.

Usufruct

A usufruct gives the holder the right to use and benefit from a property for a defined period without transferring permanent ownership of the underlying asset.

The maximum permitted period is not automatically identical across Saudi Arabia. Under the 2026 non-Saudi ownership law, the Council of Ministers’ geographical-scope document determines the maximum usufruct period available in each area.

The 99-year period is expressly recognised in the Premium Residency law for usufruct rights in Makkah and Madinah. It is therefore an important legal reference point, but it should not be described as the automatic term for every usufruct acquired under the new ownership law.

Regulatory Warning: Do not assume that every usufruct lasts 99 years. The contract and official geographical-scope rules may prescribe a shorter term.

Easement and Other Rights in Rem

The law also recognises rights such as easements and other legally enforceable interests connected to real estate.

These rights can affect:

• Access

• Utilities

• Shared facilities

• Roads

• Parking

• Drainage

• Rights benefiting neighbouring land

• Restrictions burdening the property

Every registered right and restriction should be reviewed before purchase.

Why Real Estate Registry Registration Is Essential

Foreign ownership is not completed merely because the buyer has:

• Signed a reservation form

• Paid a deposit

• Signed a private contract

• Taken possession

• Received keys

• Obtained a developer payment receipt

The acquired ownership or other right in rem must be recorded through the legally prescribed registration process.

Saudi Real Estate Registry rules state that dispositions creating, transferring, changing or terminating real rights must be registered. Without registration, the right may not be legally enforceable against third parties or effective before judicial and administrative authorities.

The Real Estate Registry records information including:

• Property number

• Location and boundaries

• Area and dimensions

• Registered owner

• Property use

• Ownership right

• Mortgages

• Easements

• Restrictions

• Other obligations

• Subsequent transfers or amendments

Regulatory Warning: Payment and possession are not substitutes for registered ownership. Completion should be tied to successful registration of the correct property right in the buyer’s name.

Can Foreigners Buy Off-Plan Property in Saudi Arabia?

Foreign buyers may acquire qualifying off-plan units where:

• The buyer category is eligible

• The project lies within an approved ownership scope

• The developer is properly registered

• The project holds the applicable off-plan sales licence

• The sale agreement complies with the off-plan regulatory framework

• The buyer’s off-plan right is recorded as required

WAFI Approval and Developer Registration

WAFI is Saudi Arabia’s official programme for licensing off-plan real estate sales and leases. It licenses off-plan projects and registers qualifying developers under the applicable regulatory system.

Before reserving an off-plan unit, a foreign buyer should verify:

1. The developer’s WAFI registration

2. The project’s valid off-plan sales licence

3. The exact licence number

4. The licensed project name and location

5. The approved unit details

6. The escrow-account arrangements

7. The licensed marketing entity

8. The expected completion and handover dates

9. The off-plan registration certificate

10. The project’s foreign ownership eligibility

A general developer registration is not enough if the specific project has not received the required off-plan licence.

Off-Plan Registration

Saudi Real Estate Registry law provides for a linked register of off-plan dispositions. Off-plan transactions must be recorded in that register, and the relevant certificate is issued through the prescribed process.

After construction is completed, the project data and unit rights are transferred to the main Real Estate Registry and the final property registration deed is issued.

Regulatory Warning: Never transfer an off-plan payment solely because a broker displays a developer brochure. Verify the WAFI project licence, approved escrow account, unit details and foreign ownership eligibility independently.

What Types of Property Can Foreigners Buy?

The law does not limit all foreign buyers to residential apartments.

Depending on the buyer category and approved geographical scope, available property may include:

REGA’s official guidance states that the types of property available to non-Saudis are determined through the geographical-scope document.

Documents Required for Foreign Property Buyers

Requirements differ by buyer type and transaction.

Additional documents may be requested depending on:

• Buyer nationality

• Source of funds

• Property value

• Financing

• Company ownership structure

• Sanctions and compliance screening

• Property type

• Location

• Intended use

Regulatory Warning: Inconsistent names, passport numbers, ownership percentages or payment information can delay or prevent registration. Foreign corporate documents should be reviewed before the transaction becomes binding.

How Can a Foreigner Buy Property in Saudi Arabia?

Step 1: Identify the Correct Buyer Route

Determine whether the purchaser is:

• A resident buying one personal home

• A resident investor

• A non-resident individual

• A foreign company

• A Saudi company with foreign shareholders

• A fund or special-purpose entity

• A Premium Residency holder or applicant

This determines the ownership scope, supporting documents and registration procedure.

Step 2: Check the Exact Ownership Zone

Verify the property rather than checking only the city.

Confirm:

• The plot or project is inside an approved geographical scope

• The buyer category is permitted

• The property use is eligible

• Full ownership or usufruct is available

• The maximum ownership percentage

• The permitted usufruct duration

• Any special conditions or restrictions

Step 3: Complete Identity and Banking Requirements

Residents should ensure that their Iqama, identity information, Saudi mobile number and bank account are valid.

Non-residents should complete the approved digital identity, Saudi mobile and bank-account setup.

Companies should complete investment registration, beneficial ownership disclosure, representative appointment and corporate banking.

Step 4: Verify the Seller and Property

The buyer or legal adviser should verify:

• Seller identity

• Seller authority

• Property registration deed

• Real Estate Registry record

• Unique property number

• Plot and unit boundaries

• Registered property use

• Mortgages

• Court orders

• Easements

• Third-party rights

• Existing tenancy

• Service-charge liabilities

• Planning approvals

• Developer and WAFI status where relevant

Step 5: Review the Sale Agreement

The agreement should clearly state:

• Exact property

• Type of property right

• Purchase price

• Deposit

• Payment schedule

• RETT responsibility

• Additional non-Saudi fee responsibility

• Brokerage charges

• Registration procedure

• Conditions precedent

• Refund circumstances

• Completion date

• Handover requirements

• Default consequences

• Dispute-resolution mechanism

The agreement should make completion conditional on the buyer being legally eligible to acquire and register the stated property right.

Step 6: Register the Transaction With ZATCA

The transaction must be registered through ZATCA’s Real Estate Transaction Tax platform.

ZATCA’s service enables the transaction to be registered and the tax to be calculated and settled electronically before conveyance or contract documentation is completed.

Step 7: Pay Applicable Tax and Fees

The responsible party must settle the RETT invoice and any other applicable government charges.

Although the seller is generally the person legally responsible for RETT, the contract should clearly state which party bears the economic cost and handles the payment process.

Step 8: Complete Real Estate Registry Registration

Final completion should include registration of the acquired ownership or other right in rem in the buyer’s name.

The buyer should receive the official registration record or title documentation confirming:

• Buyer name

• Property

• Acquired right

• Registered restrictions

• Mortgage details

• Completion date

What Taxes and Fees Do Foreign Property Buyers Pay?

Foreign buyers should distinguish the 5% Real Estate Transaction Tax from the additional fee applicable to non-Saudi property transactions.

Real Estate Transaction Tax

RETT is charged at 5% of the taxable transaction value unless an exemption applies.

The transaction must be entered on ZATCA’s platform, and the tax must be paid before or during the authorised transfer or notarisation process. The competent authority will not complete the transfer without the required tax payment or valid exemption status.

RETT should not be treated as a refundable reservation deposit. Once properly due and paid on a completed taxable transaction, it is not routinely returned simply because the buyer later changes plans.

However, it is not legally accurate to describe RETT as universally non-refundable. ZATCA allows refund applications in specific circumstances, including:

• Tax paid in excess

• Tax paid by mistake

• Tax paid for an incomplete transaction

• A qualifying transaction cancellation

• Certain other cases under the regulations

A refund request generally needs to be made through the prescribed mechanism and within the applicable deadline.

Additional Non-Saudi Fee

The foreign ownership framework provides for an additional non-Saudi real estate disposition fee of up to 5%.

The actual amount may depend on:

• Property right

• Buyer category

• Property purpose

• Geographical scope

• Transaction type

• Applicable implementing rules

REGA’s official guidance explains that the combined government burden can reach 10%, comprising 5% RETT and an additional non-Saudi fee of up to 5%.

Other Transaction Costs

Regulatory Warning: Obtain a written completion statement showing the property price, RETT, additional non-Saudi fee, brokerage, registration and all other costs before transferring the final amount.

Does Buying Property Grant Saudi Residency?

No. Purchasing property does not automatically grant residence status.

Saudi Arabia offers a separate Real Estate Owner Residency product under the Premium Residency programme.

The applicant must apply separately and meet the residency conditions. Property eligibility does not guarantee approval.

The main real estate threshold is qualifying residential property with a value of at least SAR 4 million.

Depending on the route, eligible property may include:

• Completed residential property

• A qualifying usufruct interest

• An eligible off-plan residential unit

The Premium Residency Center applies additional conditions relating to value, mortgage status, property type, ownership and off-plan approval.

Buyers considering residency should review our complete guide to Saudi Premium Residency.

Regulatory Warning: Do not buy a property solely on a salesperson’s promise that residency is guaranteed. The property transaction and Premium Residency application are separate legal procedures.

What Happens If a Premium Residency Property Is Sold?

Real Estate Owner Residency remains connected to the qualifying property interest.

Where the qualifying property is sold or the applicable right ends, the holder may need to replace it with another eligible property within the period allowed by the Premium Residency regulations.

Failure to maintain an eligible property can affect the residency status.

This makes exit planning important. A holder should check the residency consequences before:

• Selling

• Transferring

• Mortgaging

• Gifting

• Cancelling an off-plan contract

• Ending a usufruct arrangement

Can a Foreign Owner Resell the Property?

A foreign owner can generally transfer a legally acquired property right, subject to:

• The ownership law

• Geographical-scope conditions

• Registration

• Taxes and fees

• Contract restrictions

• Financing arrangements

• Property-development rules

A normal resale by an individual owner should not be confused with a land-development business.

Where a non-Saudi acquires land for development and sale, the applicable regulations can impose deadlines for completing the development and selling the resulting units.

The transaction should also be recorded through the Real Estate Registry, and the new buyer must independently qualify to acquire the right.

Penalties for Breaching Foreign Ownership Rules

REGA has authority to supervise compliance and investigate violations.

Potential consequences include:

• Warning

• Financial penalty

• Fine of up to 5% of the value of the property right

• Maximum fine of SAR 10 million

• Court-ordered sale of the property right

• Administrative or judicial proceedings

Providing false or misleading information to acquire property can expose the buyer to serious penalties and a forced sale.

Information that must remain accurate includes:

• Buyer identity

• Residency status

• Religious eligibility where relevant

• Corporate ownership

• Beneficial ownership

• Source of funds

• Purchase purpose

• Property use

• Transaction value

Regulatory Warning: Ownership disclosures and source-of-funds information are ongoing compliance matters, not formalities that apply only on the purchase date.

Foreign Buyer Due Diligence Checklist

Common Mistakes Foreign Buyers Should Avoid

Assuming the Entire City Is Open to Foreign Buyers

Ownership is decided through specific geographical scopes, not a blanket citywide rule.

Confusing Freehold With Usufruct

A long-term right to use a property is not the same as permanent ownership.

Assuming Every Usufruct Lasts 99 Years

The maximum term depends on the applicable scope and legal route.

Buying Off-Plan Without Checking WAFI

The developer and project must have the applicable registration and licence.

Paying Before Checking Registry Information

A booking form or private contract does not establish registered ownership.

Ignoring RETT Before Completion

The transaction must be registered through ZATCA and the applicable tax settled before the transfer can be completed.

Assuming RETT Can Never Be Refunded

Refunds are limited, but ZATCA does recognise qualifying refund situations.

Believing Property Automatically Grants Residency

Premium Residency requires a separate application.

Sending Money to an Unverified Account

Payments should go only to the legally authorised seller, licensed escrow account or approved beneficiary.

Relying Solely on a Broker’s Legal Explanation

A broker may support the transaction, but legal eligibility and title should be independently verified.

Is Saudi Property a Good Investment for Foreigners?

Legal eligibility does not automatically make a property a strong investment.

Foreign buyers should assess:

• Purchase price against comparable transactions

• Actual rent rather than advertised rent

• Vacancy

• Service charges

• Maintenance

• Local supply

• Infrastructure

• Developer reputation

• Handover history

• Tenant demand

• Resale liquidity

• Property-right duration

• Ownership-zone stability

• Financing costs

• Tax and fee burden

An investment can be legally available but financially weak because of poor rental demand, oversupply, high service charges or a difficult resale market.

Our Saudi real estate investment guide for 2026 explains how to assess ownership rules, costs and market fundamentals together.

A Safer Foreign Property Purchase Strategy

A foreign buyer should confirm three separate matters before signing:

1. The buyer is legally eligible.

2. The exact property right is available to that buyer.

3. The transaction can be registered successfully.

The safest transaction sequence is:

1. Confirm buyer category.

2. Verify the official ownership scope.

3. Check the Real Estate Registry.

4. Verify the seller.

5. Check WAFI where the property is off-plan.

6. Review the contract.

7. Calculate the full cost.

8. Register and settle RETT through ZATCA.

9. Complete the authorised transfer.

10. Confirm registration in the buyer’s name.

Real Estate Saudi provides research-led guidance on Saudi ownership zones, investment markets, property regulation and opportunities for international buyers.

For guidance related to evaluating a property opportunity, contact Real Estate Saudi.

This article provides general information and does not constitute Saudi legal, tax, immigration, conveyancing, financing or investment advice. Buyers should verify current requirements through REGA, the Real Estate Registry, ZATCA, WAFI, the Premium Residency Center and qualified Saudi advisers before signing or paying.