Can Foreigners Buy Property in Saudi Arabia? The 2026 Law Explained
Yes, foreigners can now buy residential and commercial property in designated zones across Saudi Arabia under the Law of Real Estate Ownership by Non-Saudis, which took effect in January 2026. This landmark reform allows both residents and non-residents to hold freehold title in approved areas, eliminating the requirement for Premium Residency to invest. The law is a central pillar of Vision 2030, designed to inject global capital into the Kingdom’s ~USD 201 billion property market.
Key Takeaways
- Foreigners (residents and non-residents) can hold direct freehold title in specific designated zones in Riyadh, Jeddah, and the Eastern Province.
- Makkah and Madinah remain restricted to long-term leaseholds for non-Saudi Muslims.
- Buyers must pay a 5% Real Estate Transaction Tax (RETT) plus a specific non-Saudi transfer registration fee.
- Transactions are fully digital and processed through the official Saudi Properties platform.
Where Can Foreigners Buy Property in Saudi Arabia?
Foreign investors are permitted to purchase real estate in specific “Designated Ownership Zones” published by the Real Estate General Authority (REGA). These zones primarily cover master-planned communities, giga-projects, and high-density commercial districts in major urban centres. Areas outside these zones, particularly sensitive border regions and non-designated agricultural lands, remain strictly off-limits to foreign buyers.
Approved Zones and Pricing (2026)
| City / Region | Key Designated Zones | Average Price per Sqm (SAR) |
|---|---|---|
| Riyadh | KAFD, Diriyah, ROSHN Front | SAR 15,000 (~USD 4,000) |
| Jeddah | Jeddah Central, Obhur Waterfront | SAR 12,500 (~USD 3,333) |
| Giga-Projects | NEOM (The Line, Sindalah), Red Sea Global | SAR 25,000+ (~USD 6,666+) |
What Are the Fees and Taxes for Foreign Buyers?
Foreign buyers face a standardized tax structure when purchasing property in the Kingdom. The primary cost is the Real Estate Transaction Tax (RETT), fixed at 5% of the total property value. In addition to RETT, non-Saudi buyers are subject to a nominal foreign registration fee processed during the title transfer. Unlike many European markets, Saudi Arabia imposes no annual property tax on completed residential units, making it highly attractive for long-term hold strategies.
Do I Need Premium Residency to Buy Property?
No, the 2026 law decoupled property ownership from the Premium Residency (Saudi Green Card) program. Any verified foreign individual or corporate entity can purchase property in designated zones. However, buying a property worth SAR 4 million (~USD 1.06 million) or more automatically qualifies the buyer for the Real Estate Owner Residency product, granting long-term visa benefits without requiring a local sponsor.
Frequently Asked Questions (FAQ)
Can non-residents buy property in Saudi Arabia?
Yes, non-resident foreign investors can purchase real estate in designated ownership zones. The entire transaction, including identity verification and funds transfer, can be completed remotely via the Saudi Properties platform.
Can foreigners buy property in Makkah and Madinah?
Foreigners cannot hold direct freehold title in Makkah and Madinah. However, foreign Muslims can invest through long-term leasehold agreements (usufruct rights) or by purchasing shares in publicly traded hospitality REITs.
Is there an annual property tax in Saudi Arabia?
No, Saudi Arabia does not levy an annual municipal property tax on completed residential properties. The primary tax is the one-time 5% Real Estate Transaction Tax (RETT) paid at the time of purchase.
How do I verify a designated ownership zone?
The Real Estate General Authority (REGA) publishes an interactive, regularly updated map of all approved designated zones on their official portal. Always verify the zone status before signing any off-plan contract.
Disclaimer: This article provides general market information and does not constitute legal or financial advice. Always verify current rules with REGA or a licensed legal counsel before transacting.
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