Real estate in Saudi Arabia: what's changing for foreigners in 2025 and after

Last updated on June 12, 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

Saudi Arabia's property market has undergone massive changes in 2025, opening doors that were firmly shut to foreign buyers just a year ago. If you're considering buying property in the Kingdom, whether for investment or to make it your home, here's everything you need to know about the new rules and opportunities.

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.

Quick Summary:

Saudi Arabia has dramatically liberalized its property market in 2025, allowing foreigners to buy property in most cities with streamlined processes and significant visa benefits.

The new rules include reduced property taxes from 10% to 5%, Premium Residency for buyers of SAR 4 million properties, and even indirect investment opportunities in Mecca and Medina through listed companies.

Aspect	Before 2025	As of June 2025
Property ownership rights	Highly restricted, Iqama required	Open in most Saudi cities with streamlined process
Mecca and Medina access	Completely prohibited	Can invest up to 49% in listed companies owning property there
Property tax rate	10% on all transactions	Reduced to 5% effective April 2025
Premium Residency	Not linked to property	Available with SAR 4 million property purchase
Approval timeline	Several weeks to months	5 business days via online portal
Minimum investment	SAR 30 million for development	SAR 4 million for residency, SAR 30 million for development
Visa benefits	Limited to standard visas	Premium Residency with family sponsorship
Resale restrictions	Strict and unclear	Clear rules, no speculation allowed

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in MENA countries (Saudi Arabia, UAE, Qatar, Egypt, 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.

How this content was created 🔎📝

At SandsOfWealth, we explore the Saudi real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Riyadh, Jeddah, and Dammam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners buy property in Saudi Arabia right now, and what were the old rules?

Yes, foreigners can absolutely buy property in Saudi Arabia as of June 2025.

Before 2025, foreign property ownership was extremely limited. You needed an Iqama (residency permit), could only buy in specific zones, and faced a lengthy bureaucratic process with unclear regulations. Most foreigners were restricted to leasing property or buying through complex corporate structures.

Today, the Saudi government has opened most of the Kingdom to foreign buyers. You can purchase residential and commercial properties in major cities like Riyadh, Jeddah, and Dammam, as well as in new mega-projects like NEOM and the Red Sea Project.

The only areas still off-limits for direct ownership are Mecca and Medina (though there's now a workaround for these) and military or border zones. The transformation represents one of the most significant liberalizations in Saudi Arabia's property market history.

This complete overhaul of property laws aligns with Vision 2030's goals to attract international investment and diversify the economy beyond oil revenues.

What are the main legal changes in 2025 that affect foreign property ownership?

The Saudi government introduced five game-changing reforms in 2025 that revolutionized foreign property ownership.

First, the New Investment Law introduced in February 2025 guarantees equal treatment for foreign and domestic investors, removing many discriminatory practices that existed before. This law provides legal certainty and protection for foreign property buyers.

The Property Tax Reduction in April 2025 slashed property transaction taxes from 10% to 5% for all buyers, including foreigners. This means you'll save SAR 50,000 on every SAR 1 million of property value - a significant financial incentive.

The Premium Residency Program now allows foreign buyers who purchase residential property worth at least SAR 4 million to obtain Premium Residency, Saudi Arabia's version of a "golden visa." This provides unprecedented freedom and security for foreign property owners.

Additionally, the Ministry of Investment launched a streamlined digital process with an online portal that processes foreign ownership applications within 5 business days, compared to several weeks or months previously. Finally, while foreigners still can't directly own property in Mecca and Medina, they can now buy up to 49% of shares in Saudi-listed companies that own real estate in these cities.

What types of properties can foreigners buy now that they couldn't before?

The range of properties available to foreign buyers has expanded dramatically in 2025.

Foreigners can now purchase residential apartments and villas in most Saudi cities, provided they are completed and habitable. This includes luxury waterfront properties in Jeddah, modern high-rises in Riyadh's business districts, and family compounds in expat-friendly neighborhoods.

Property Type	Status for Foreign Buyers	Key Requirements
Residential apartments and villas	Fully allowed in most cities	Must be completed and habitable
Townhouses and compounds	Allowed	Popular in expat-friendly areas
Commercial buildings	Allowed	Need business license for operations
Mixed-use developments	Allowed	Subject to zoning regulations
Raw land for development	Allowed with conditions	Minimum SAR 30 million investment

Commercial properties and mixed-use developments are also open to foreign ownership, though operating a business requires proper licensing. The biggest change is in residential property - before 2025, foreigners could rarely buy homes for personal use.

Raw land can be purchased for development projects, but only with a minimum investment of SAR 30 million and a commitment to complete development within five years.

Which Saudi cities allow foreign property ownership, and which don't?

Foreign property ownership is now permitted in most major Saudi cities and development zones.

Cities where foreigners can buy include Riyadh (all districts except restricted government areas), Jeddah including waterfront properties along the Red Sea, Dammam and the Eastern Province which is popular with oil industry professionals, and all the mega-projects like NEOM where 100% foreign ownership is allowed with tax benefits.

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

King Abdullah Economic City offers full ownership rights, while luxury tourism destinations like The Red Sea Project and Amaala welcome foreign buyers. Cultural and entertainment hubs including Qiddiya, Diriyah, and Al Ula are also open to foreign investment.

However, Mecca and Medina remain off-limits for direct foreign ownership, though you can now invest in listed companies owning property there. Border areas within 50km of international boundaries and military zones also remain restricted. Each city may have specific district restrictions, so verification is essential before purchasing.

What do foreigners need to qualify for property ownership?

The requirements for foreign property ownership depend on whether you're buying as an individual resident or as an investor.

Individual foreign residents need legal residency in Saudi Arabia or must apply for Premium Residency, a clean criminal record from their home country, age 21 or older, a health clearance certificate, and proof of funds showing legitimate source of money. For Premium Residency, the property must be worth at least SAR 4 million and be fully paid without a mortgage.

Foreign investors and companies face different requirements including Ministry of Investment approval, a minimum SAR 30 million investment for land development, commitment to complete development within 5 years, a registered business entity in Saudi Arabia, and detailed project plans with feasibility studies.

The documentation process has been significantly streamlined through the new online portal, but all documents must be properly attested and translated into Arabic. Banking relationships in Saudi Arabia can facilitate the fund transfer process.

These requirements ensure that foreign buyers are financially capable and committed to their investment in the Kingdom.

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investing in real estate in Saudi Arabia

How much property can a foreigner own in Saudi Arabia?

Saudi Arabia doesn't impose specific limits on the number of properties foreigners can own.

Unlike some countries that restrict foreign ownership to one or two properties, you can own multiple properties across different Saudi cities as long as you meet the requirements for each purchase. The key restrictions are value-based rather than quantity-based.

For Premium Residency, your primary residence must be worth at least SAR 4 million. For development projects, you need a minimum total investment of SAR 30 million. When investing in shares of companies owning property in Mecca or Medina, you're limited to maximum 49% ownership in any listed company.

The government's main concern is preventing speculation - buying solely to flip for quick profit. As long as your purchases are for genuine residential use or legitimate development projects, there's no cap on the number of properties.

This liberal approach reflects Saudi Arabia's desire to attract serious long-term investors rather than short-term speculators.

What's the difference between rules for foreign investors versus individual residents?

Foreign investors and individual residents face distinctly different regulatory frameworks.

Individual foreign residents can purchase properties starting at SAR 4 million for Premium Residency, focusing on residential properties for personal use. They face a simplified 5-day online approval process with no development requirements, though they cannot engage in speculation.

Aspect	Individual Foreign Residents	Foreign Investors/Companies
Minimum investment	SAR 4 million for Premium Residency	SAR 30 million for development
Property types	Residential for personal use	Commercial, residential projects
Approval process	5 days online	5-10 days with project review
Development requirement	None - buy ready properties	Must complete within 5 years
Resale restrictions	Can't speculate	Can sell developed units
Tax treatment	5% transaction tax	5% tax plus business taxes
Residency benefits	Premium Residency available	Investor residency possible

Foreign investors must commit to larger projects with SAR 30 million minimum investment, can develop commercial and residential projects, but must complete development within 5 years. They face additional business taxes but have more opportunities for profit.

Individual buyers enjoy simpler processes but limited investment opportunities, while investors face more complex requirements but greater potential returns.

What visa and residency benefits come with property ownership?

Property ownership in Saudi Arabia now unlocks significant residency benefits that transform the expatriate experience.

Premium Residency, available with a SAR 4 million property purchase, provides unlimited entry and exit without a sponsor, the right to live and work anywhere in Saudi Arabia, ability to sponsor family members including parents, children can attend any school, freedom to open bank accounts and start businesses, all valid for renewable periods.

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

Investor Residency, requiring SAR 7 million investment, includes all Premium Residency benefits plus a pathway to permanent residency, though you must create 10 jobs for Saudis and gain access to enhanced business opportunities.

These benefits represent a massive shift from the old kafala sponsorship system, giving property owners unprecedented freedom and security. No longer tied to an employer sponsor, foreign property owners can change jobs, start businesses, and travel freely.

The ability to sponsor parents is particularly valuable for many expatriates who want to bring elderly family members to Saudi Arabia.

How does the property purchase process work for foreigners now?

The new streamlined process takes about 2-3 weeks total, a dramatic improvement from the months-long procedures of the past.

First, find your property over 1-2 weeks by working with licensed real estate agents, verifying property ownership through official records, and getting a professional property valuation. The Saudi Real Estate Authority maintains a list of licensed agents and approved valuators.

Submit your online application in just one day by uploading documents to the Ministry of Investment portal, paying the application processing fee, and submitting property details with the purchase agreement. The digital platform operates 24/7 with support in multiple languages.

Receive approval within 5 business days as the Ministry reviews your application with automatic approval for qualifying applications, then receive your electronic approval certificate. The system sends SMS and email updates throughout the process.

Complete the purchase in 3-5 days by signing final contracts at a notary, paying the 5% property transaction tax, registering with the ZATCA RETT platform, and receiving your title deed. If eligible, apply for Premium Residency by submitting your residency application with property ownership proof and completing biometric registration.

infographics rental yields citiesSaudi Arabia

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What taxes and fees do foreign property buyers pay?

The tax structure for foreign property buyers in Saudi Arabia is straightforward and competitive.

The main cost is the 5% property transaction tax on the purchase price, reduced from 10% in April 2025. On a SAR 5 million property, you'll pay SAR 250,000 in tax. Registration fees range from SAR 2,000-5,000 based on property value, while valuation fees cost SAR 3,000-10,000 and are required for Premium Residency applications.

Tax/Fee Type	Rate/Amount	When Paid	Notes
Property transaction tax	5% of purchase price	At closing	Reduced from 10% in April 2025
Registration fee	SAR 2,000-5,000	At closing	Based on property value
Valuation fee	SAR 3,000-10,000	Before purchase	Required for Premium Residency
Annual property tax	None currently	N/A	No recurring property taxes
Capital gains tax	20% for companies	On sale	Individuals generally exempt
Rental income tax	20% after expenses	Annually	For investment properties
VAT on services	15%	As incurred	On agent fees, maintenance

Saudi Arabia has no annual property taxes, making it attractive for long-term ownership. Capital gains tax applies to companies at 20% but individuals are generally exempt. Rental income is taxed at 20% after deducting expenses.

VAT at 15% applies to real estate agent fees, legal services, and property management, so factor this into your budget.

Can foreigners resell, rent out, or develop their Saudi properties?

Foreign property owners have significant rights regarding resale, rental, and development.

For reselling, you can sell your property anytime after purchase without special permissions, though you must maintain ownership if it's tied to Premium Residency. The same 5% tax applies to the buyer on resale, and you cannot engage in speculation through quick flips for profit.

Premium Residency holders can rent out their properties after registering rental contracts with authorities. Rental income is subject to 20% tax after expenses, and you can use property management companies or offer short-term rentals in designated tourist areas.

Development rights differ significantly between individual owners and investors. Individual owners cannot subdivide or redevelop their properties. However, investors with SAR 30 million commitment can develop, must complete within 5 years, can pre-sell units with proper licenses, and remain subject to local building codes.

These flexible ownership rights make Saudi property attractive for both personal use and investment purposes.

What are the long-term opportunities and risks for foreigners buying Saudi property?

The Saudi property market presents compelling opportunities alongside manageable risks for foreign buyers.

Major opportunities include a growing market with 8-10% annual growth projected through 2030, driven by Vision 2030 mega-projects. The Saudi Riyal's peg to the US Dollar at 3.75 provides currency stability. Non-oil GDP is growing at 5-6% annually, creating jobs and housing demand.

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

The tourism sector targeting 100 million visitors by 2030 will drive demand for residential and hospitality properties. Property ownership can lead to permanent residency, offering long-term security for families.

Key risks include potential market volatility in speculative areas like NEOM, possible regulatory changes despite the liberalization trend, cultural adaptation requirements that may affect property use, oversupply risk from massive construction projects, and potential exit challenges during market downturns.

The Saudi property market offers genuine opportunities for both investors and residents, but success requires understanding local dynamics and taking a long-term view. The 2025 reforms have made Saudi Arabia significantly more attractive for foreign property buyers.

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.

Saudi Arabia's 2025 property reforms represent a historic opening of the Kingdom's real estate market to foreign buyers, with streamlined processes, reduced taxes, and valuable residency benefits making property ownership more accessible than ever before.

Whether you're seeking a family home, investment property, or a gateway to permanent residency, the new regulations offer clear pathways and protections for foreign buyers willing to navigate this transforming market.