Can non-Saudis own property in 2025?

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack

As we reach mid-2025, Saudi Arabia's property market has transformed dramatically under Vision 2030.

The Kingdom has opened its doors wider to foreign property buyers, but navigating the rules requires careful understanding. Whether you're considering Saudi Arabia for investment or planning to relocate, this guide answers the 12 most critical questions about foreign property ownership.

If you want to go deeper, you can check our pack of documents related to the real estate market in Saudi Arabia, based on reliable facts and data, not opinions or rumors.

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in Middle Eastern countries (Saudi Arabia, UAE, Qatar, Kuwait, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Saudi Arabia. If you'd like to learn more about us, you can check our presentation page.

Who can legally own property in Saudi Arabia in 2025?

As of June 2025, three main categories of foreigners can legally own property in Saudi Arabia.

Foreign residents holding a valid Iqama (residence permit) can purchase property for personal use. This includes expatriate workers, business professionals, and their families living in the Kingdom. The Iqama must be valid and maintained throughout the ownership period.

Premium Residency holders who invest at least SAR 4 million in real estate gain property ownership rights without needing a traditional sponsor. This "golden visa" program has become increasingly popular among high-net-worth individuals seeking long-term investment opportunities in the Kingdom. The Premium Residency provides additional benefits including the ability to sponsor family members and operate businesses with greater flexibility.

Foreign companies licensed by the Ministry of Investment can acquire commercial and residential properties, provided they meet the minimum investment threshold of SAR 30 million for development projects. These companies must demonstrate their commitment to contributing to the Saudi economy through job creation and economic development.

The key requirement across all categories is having legal residency status or proper business licensing in Saudi Arabia.

What areas are off-limits for foreign property buyers?

Saudi Arabia maintains strict restrictions on foreign property ownership in specific areas to protect national security and religious sanctity.

The holy cities of Makkah and Madinah are completely off-limits for direct foreign ownership. However, foreigners can enter into 99-year leasehold agreements in these cities, which provide long-term usage rights without actual ownership. This arrangement allows foreign investors to participate in the real estate market of these significant cities while respecting religious considerations.

In addition to these restrictions, foreigners can invest indirectly in Makkah and Madinah by purchasing up to 49% of shares in listed Saudi companies that own real estate in these holy cities. Special Economic Zones like NEOM and the Red Sea Project may have different rules, sometimes allowing 100% foreign ownership under specific conditions designed to attract international investment.

It's something we develop in our Saudi Arabia property pack.

What visa or residency status do I need to buy property?

You cannot buy property in Saudi Arabia as a tourist or visitor - legal residency is mandatory.

The standard route requires holding a valid Iqama (residence permit) issued through employment, family sponsorship, or business ownership in Saudi Arabia. Your employer typically sponsors your Iqama, which must be maintained throughout your property ownership period. If you leave your job or your Iqama expires, you may be required to sell your property.

The Premium Residency route offers more flexibility by allowing you to apply for this special visa by committing to invest SAR 4 million in Saudi real estate. This grants you the right to live, work, and own property without a local sponsor, providing unprecedented freedom for foreign investors. The Premium Residency is valid for an extended period and can be renewed, offering long-term stability for property owners.

Foreign companies must follow the investment route, obtaining proper licensing from the Ministry of Investment before purchasing commercial properties. This process involves demonstrating the company's financial capability and its commitment to contributing to Saudi Arabia's economic development through job creation and investment.

Non-residents generally cannot buy property outright but may participate through long-term leases or by investing in publicly listed real estate companies on the Saudi stock exchange.

Can non-Saudis buy both residential and commercial properties?

Yes, foreigners can purchase both residential and commercial properties, but different rules apply to each category.

For residential properties, foreign residents with Iqama can purchase one residential unit for personal use, with a maximum size of 3,000 square meters. The property must be used as a primary residence and cannot be left vacant for extended periods. This restriction ensures that foreign ownership serves genuine residential needs rather than speculative investment.

Commercial property ownership offers more flexibility for licensed foreign investors and companies. They can purchase commercial real estate but must meet the SAR 30 million minimum investment requirement and obtain approval from the Ministry of Investment. This higher threshold ensures that foreign commercial investment contributes significantly to the Saudi economy.

Land ownership presents the most restrictions, as raw land purchases are generally prohibited for individual foreigners. Land can only be purchased by foreign companies for approved development projects, and the land must be developed within 4-5 years according to the approved plans. Failure to develop the land within the specified timeframe can result in penalties or forced sale.

Mixed-use properties require special consideration and approval, as they combine residential and commercial elements.

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How much property can a foreigner own in Saudi Arabia?

The Saudi government imposes clear quantitative limits on foreign property ownership to prevent market speculation.

Individual foreigners can own only one residential property, regardless of their financial capacity or the number of family members. This single-property rule applies per person, meaning a married couple could potentially own two properties if both have valid residency. The maximum size limit of 3,000 square meters ensures that foreign ownership doesn't monopolize large land parcels.

For commercial properties, foreign companies face no numerical limits but must meet substantial investment thresholds. Each commercial property purchase requires meeting the SAR 30 million minimum investment requirement, effectively limiting ownership to serious investors with significant capital. Companies can own multiple commercial properties across different Saudi cities, provided each acquisition meets regulatory requirements.

In restricted cities like Makkah and Madinah, foreigners can own up to 49% of shares in companies that own property, allowing indirect participation in these important markets. Development land purchases come with strict utilization requirements, typically mandating development within 4-5 years.

These limits ensure foreign ownership serves genuine residential or business purposes rather than speculation.

What government approvals are required for foreign property ownership?

Foreign buyers must navigate a multi-layered approval process involving several government authorities.

The Ministry of Investment leads the approval process for all foreign investment properties and commercial purchases. They evaluate the economic benefit of the investment and ensure compliance with foreign investment regulations. This ministry has streamlined its procedures under the 2025 Investment Law, reducing approval times significantly.

The approval process typically takes 2-4 months, though the new 2025 regulations aim to reduce this to 30-60 days. Having complete documentation and working with a licensed real estate lawyer significantly speeds up the process. Each authority has specific requirements and documentation needs, making professional assistance valuable.

It's something we develop in our Saudi Arabia property pack.

What taxes and fees must foreigners pay when buying property?

Foreign property buyers in Saudi Arabia face several mandatory costs that significantly impact the total investment.

The Real Estate Transaction Tax (RETT) represents the largest cost at 5% of the property value, paid entirely by the buyer. This applies to all real estate transactions as of the April 2025 regulations. For a SAR 2 million property, this means SAR 100,000 in transaction tax alone.

Additional fees accumulate quickly during the purchase process. Registration fees at the General Real Estate Authority, municipality fees for property documentation, notary public fees for contract authentication, and legal fees (typically 1-2% of property value) all add to the acquisition cost. Real estate agent commissions usually run 2.5% of the property value, though this is negotiable.

Ongoing tax obligations include annual property tax on undeveloped land to encourage development, and income tax on rental income if the property is leased. Companies face a 30% capital gains tax upon property disposal, while individuals may be exempt depending on holding period and usage.

The seller pays Zakat (2.5% wealth tax) on the property value at the time of sale, which can influence negotiation dynamics.

Can non-Saudis get mortgages from Saudi banks?

Yes, foreign residents can obtain mortgage financing from Saudi banks, though terms differ from those offered to citizens.

Eligibility requirements include holding a valid Iqama with at least 6 months remaining, proof of stable income from a Saudi employer, and meeting minimum salary thresholds that vary by bank but typically range from SAR 5,000-10,000 monthly. Banks also require a good credit history within Saudi Arabia, which can be challenging for new residents.

Mortgage terms for expatriates typically require higher down payments of 15-30% compared to Saudi nationals. The loan-to-value ratio ranges from 70-85%, meaning you'll need substantial upfront capital. Maximum loan terms are usually 20-25 years or until age 60, whichever comes first. Interest rates for expatriates run slightly higher than for Saudi nationals, reflecting the perceived higher risk.

Premium Residency holders often receive preferential financing terms, including lower down payments and better interest rates, as they're viewed as more stable long-term residents. Some banks offer special mortgage products for Premium Residency holders.

Non-residents cannot access local mortgage financing and must pay cash or arrange international financing through their home country banks.

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Do foreigners get full ownership or just leasehold rights?

The type of ownership foreigners receive depends entirely on the property's location within Saudi Arabia.

In most areas of Saudi Arabia, foreigners receive full freehold ownership with permanent rights. This includes complete ownership documentation, the ability to register property in your name, and all standard ownership privileges. You can modify the property with appropriate permits, use it as collateral for loans, and enjoy full control over your investment.

Special Economic Zones like NEOM offer unique ownership structures designed to attract international investment, potentially allowing 100% foreign ownership with fewer restrictions. However, you must comply with all local regulations and maintain the property's designated use throughout the ownership period.

Can foreigners freely rent out or resell their Saudi property?

Foreigners can both rent out and resell their properties, but specific regulations apply to each transaction type.

For renting your property, you must ensure the rental use aligns with the property's designated purpose - residential properties can only be rented for residential use. You'll need to register as a landlord with local authorities and comply with Saudi rental laws. Income tax applies to rental earnings, and you must maintain proper records for tax purposes. The rental market offers good returns in major cities, making this an attractive option for property investors.

Reselling your property requires navigating several conditions. The buyer must meet all eligibility requirements for foreign ownership, and government approval is required for the transfer. Investment properties typically must be held for at least 5 years before resale to discourage speculation. You must settle all taxes and fees before transfer, including any outstanding utility bills or maintenance charges.

Capital gains tax applies to commercial property sales at 30% for companies, while individual sellers may qualify for exemptions based on usage and holding period. The resale process mirrors the initial purchase, requiring similar approvals and documentation.

Market conditions significantly impact resale potential, with properties in major cities generally offering better liquidity.

How does inheritance work for property owned by non-Saudis?

Property inheritance in Saudi Arabia follows Sharia law exclusively, creating unique challenges for foreign property owners.

Sharia inheritance rules include forced heirship, where specific shares automatically go to family members regardless of the deceased's wishes. Male heirs receive double the share of female heirs under these rules. Non-Muslim spouses may not inherit under standard Sharia rules, potentially leaving them without property rights. You can only freely designate one-third of your estate through a will, with the remaining two-thirds distributed according to Sharia principles.

These rules apply regardless of your nationality or the inheritance laws in your home country. The Saudi courts will not recognize foreign wills that contradict Sharia principles for properties located in Saudi Arabia. This can create significant complications for families accustomed to different inheritance systems.

Practical steps for foreign property owners include creating a Sharia-compliant will with a specialized lawyer who understands both Saudi and international law. Consider setting up a company to hold the property, as corporate ownership may offer more flexibility. Explore trust structures in your home country that might provide additional protection. Document all ownership clearly and ensure family members understand Saudi procedures.

Non-Muslim expatriates should seek specialized legal advice early in the ownership process to navigate these complexities.

It's something we develop in our Saudi Arabia property pack.

What are the latest 2025 law changes affecting foreign property ownership?

The 2025 regulatory changes represent the most significant liberalization of Saudi Arabia's foreign property ownership rules in decades.

The 2025 Investment Law, effective January 2025, eliminated the old Foreign Investment License system that created bureaucratic delays. It streamlined approval procedures to 30-60 days from the previous 2-4 months, significantly improving the investment experience. The law expanded the list of sectors open to foreign investment and introduced an "Excluded Activities" list for clarity, removing ambiguity about permitted investments.

Updated RETT Regulations effective April 2025 standardized the 5% transaction tax for all buyers, removing previous variations. New exemptions apply to certain government-backed developments, particularly in Special Economic Zones. Digital payment systems enable faster processing, and clearer timelines require tax payment within 30 days of transaction.

The expansion of property access means foreigners can now own both residential and commercial properties in most areas with simplified documentation requirements. Premium Residency benefits have been enhanced, including preferential mortgage terms and expedited approvals. New pathways for property-based residency make it easier for investors to obtain long-term residency through real estate investment.

The government has announced plans to further liberalize the market by late 2025, potentially including expanded mortgage options for foreigners and reduced minimum investment thresholds for commercial properties.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Trowers & Hamlins - Vision to Reality: Foreign Ownership Laws in Saudi Arabia
2. Property Saudi Arabia - Saudi Real Estate Foreign Investors Guide
3. Crown Continental - Can Foreigners Buy Property in Saudi Arabia: A Comprehensive 2025 Guide
4. Company Formation Saudi Arabia - Buy a Property in Saudi Arabia
5. PwC Middle East - Saudi Arabia New RETT Implementing Regulations
6. Saudi Helpline Group - Saudi Investment Law Key Changes Benefits