Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Yes, the analysis of Riyadh's property market is included in our pack
Saudi Arabia's landmark new foreign ownership law, effective January 21, 2026, opens the Riyadh property market to international buyers through a designated-zone system that marks the most significant shift in Gulf real estate policy in decades.
This guide covers everything you need to know about buying residential property in Riyadh as a foreigner in 2026, including legal requirements, visa rules, financing options, taxes, and the step-by-step purchasing process.
We constantly update this blog post as regulations evolve and new implementing rules are published by Saudi authorities.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Riyadh.
Insights
- The new Real Estate Ownership Law for Non-Saudis became effective on January 21, 2026, replacing the restrictive 2000 framework and allowing foreigners to buy property in designated zones across Riyadh.
- Riyadh is one of four cities (alongside Makkah, Madinah, and Jeddah) where foreign residential ownership is limited to government-approved designated zones rather than available citywide.
- Foreign residents with valid iqama permits can own one residential property outside designated zones, but non-residents are restricted to buying only within approved areas in Riyadh.
- Closing costs for foreigners in Riyadh typically range from 7% to 10% of the purchase price, with the 5% Real Estate Transaction Tax (RETT) being the largest single expense.
- The new law introduces an additional transaction fee of up to 5% for non-Saudi buyers on top of the standard RETT, meaning foreigners could face up to 10% in government transfer costs.
- Premium Residency's Real Estate Owner category requires a minimum property investment of SAR 4 million (about USD 1 million) in a mortgage-free, developed residential property.
- Saudi banks offer foreigners loan-to-value ratios between 70% and 85%, with mortgage rates ranging from 4% to 8% depending on whether the product is fixed or variable and linked to SAIBOR.
- The Saudi Central Bank's repo rate stands at 4.75% as of late 2025, directly influencing SAIBOR and the mortgage rates available to foreign buyers in Riyadh.
What can I legally buy and truly own as a foreigner in Riyadh?
What property types can foreigners legally buy in Riyadh right now?
As of early 2026, foreigners can legally buy apartments, villas, townhouses, and units within residential compounds in Riyadh, but only in specific geographic zones designated by the Real Estate General Authority (REGA) under the new foreign ownership law.
The most important legal condition is that Riyadh is one of four cities where foreign residential ownership is restricted to designated zones, meaning you cannot simply buy any property anywhere in the city as you might in other Saudi locations.
Foreign residents holding valid iqama permits have a slight advantage: they can own one personal residence outside designated zones, though this still requires Ministry of Interior approval and excludes Riyadh's most sensitive areas.
Non-resident foreigners, however, can only purchase property within the officially approved zones, making it essential to verify zone eligibility before making any deposit or commitment on a Riyadh property.
Finally, please note that our pack about the property market in Riyadh is specifically tailored to foreigners.
Can I own land in my own name in Riyadh right now?
As of early 2026, foreigners can technically own land in Riyadh, but only within designated zones and subject to strict conditions that make buying a ready-built residential unit far more straightforward than purchasing vacant land.
Saudi policy actively discourages land hoarding through "white land" measures that impose annual fees of up to 10% on undeveloped plots, so foreign buyers looking for a home should focus on completed apartments, villas, or townhouses rather than vacant land.
If you do want to purchase land, expect additional scrutiny and potentially a requirement to develop the property within a specified timeframe, as the new framework aims to ensure foreign investment contributes to urban growth rather than speculative land-banking.
As of 2026, what other key foreign-ownership rules or limits should I know in Riyadh?
As of early 2026, the most significant rule affecting purchases in Riyadh is the mandatory registration requirement with the Real Estate Registry, meaning any transaction involving foreign buyers is only valid once officially recorded through REGA's systems.
There is no specific foreign-ownership quota rule for apartments or condos in Riyadh as exists in some other countries, but the designated-zone system effectively controls where and how much foreigners can own by limiting purchases to approved areas.
Foreign buyers must complete registration through REGA's new "Saudi Properties" digital platform, which launched ahead of the law's effective date and serves as the official gateway for all non-Saudi real estate transactions.
The most notable recent change is the introduction of an additional transaction fee of up to 5% of the property value for non-Saudi buyers, charged on top of the standard 5% RETT, meaning foreigners could face up to 10% in government transfer costs compared to 5% for Saudi nationals.
What's the biggest ownership mistake foreigners make in Riyadh right now?
The single biggest ownership mistake foreigners make in Riyadh is paying deposits on properties before confirming the unit is located within a designated zone eligible for non-Saudi ownership, leaving them with money tied up in a purchase they cannot legally complete.
If you make this mistake, the likely consequence is losing your deposit and facing months of legal complications trying to unwind the transaction, since the seller may argue the contract is void while keeping your funds.
Other classic pitfalls in Riyadh include confusing usufruct rights (a time-limited benefit) with true freehold ownership, trusting a broker's verbal assurance instead of verifying official eligibility, and signing developer reservation agreements for off-plan projects that lack confirmed foreign-ownership approval.
We have made this infographic to give you a quick and clear snapshot of the property market in Saudi Arabia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Riyadh?
Do I need a specific visa to buy property in Riyadh right now?
As of early 2026, you do not need a specific visa to buy property in Riyadh, and purchases are technically possible even on a tourist eVisa, though the final registration step may require more robust identity verification that favors those with residency status.
The most common administrative hurdle for non-residents is the official registration process through REGA's Saudi Properties platform, which requires verified identity documents and may necessitate a power of attorney if you cannot be present for final transfer steps.
You do not need a local tax ID before buying in Riyadh in the way some Western countries require, but you will need to complete RETT registration through ZATCA's digital platform as part of the transaction, which involves providing identification and transaction details.
A typical document set for foreign buyers includes a valid passport, proof of funds, the property sale contract, and any required approvals or confirmations of zone eligibility, with residents also providing their iqama details.
Does buying property help me get residency and citizenship in Riyadh in 2026?
As of early 2026, buying property in Riyadh can help you obtain residency through Saudi Arabia's Premium Residency program, but it does not create a pathway to citizenship, which remains a separate and highly discretionary process.
The Real Estate Owner Premium Residency category requires owning a developed residential property worth at least SAR 4 million (approximately USD 1 million), free of any mortgage, and appraised by TAQEEM-accredited valuers.
If you cannot meet the SAR 4 million property threshold, alternative Premium Residency routes exist, including the Unlimited Duration option at a one-time fee of SAR 800,000 (about USD 213,000) or the annual Limited Duration option at SAR 100,000 per year, neither of which requires property ownership.
We give you all the details you need about the different pathways to get residency and citizenship in Riyadh here.
Can I legally rent out property on my visa in Riyadh right now?
Your visa status does not directly restrict your ability to rent out property you legally own in Riyadh, though the practical management of rental operations and tax compliance becomes more complex if you are not a resident.
You do not need to live in Saudi Arabia to rent out your Riyadh property, but non-resident owners typically need to appoint a local property manager or establish a power of attorney for someone who can handle tenant contracts, maintenance, and administrative requirements.
Foreign landlords in Riyadh should be aware that rental income may trigger VAT considerations depending on how the activity is structured, and Riyadh's recent five-year rent freeze policy (announced in September 2025) limits annual rent increases for existing tenants, which affects your yield projections.
We cover everything there is to know about buying and renting out in Riyadh here.
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How does the buying process actually work step-by-step in Riyadh?
What are the exact steps to buy property in Riyadh right now?
The standard sequence to buy property in Riyadh involves: (1) confirming the property is in a designated zone eligible for foreign ownership, (2) conducting due diligence on title and seller, (3) signing a preliminary agreement with conditional deposit, (4) arranging financing if needed, (5) completing RETT registration with ZATCA, (6) executing the final transfer and registration with the Ministry of Justice, and (7) receiving handover with keys and utility setup.
You do not need to be physically present for every step in Riyadh, as a properly issued power of attorney allows a representative to handle most administrative and signing requirements, though at least one in-person verification moment may be needed for identity confirmation.
The step that makes the deal legally binding in Riyadh is the official registration of the transfer through the Ministry of Justice's documentation system, as the new framework emphasizes that property rights only become valid upon registration with the Real Estate Registry.
The typical end-to-end timeline from accepted offer to final registration in Riyadh ranges from 4 to 12 weeks depending on financing complexity, zone verification, and how quickly all parties complete the RETT and registration steps.
We have a document entirely dedicated to the whole buying process our pack about properties in Riyadh.
Is it mandatory to get a lawyer or a notary to buy a property in Riyadh right now?
A notary function is effectively mandatory in Riyadh because the official transfer only becomes valid when processed through the Ministry of Justice's documentation and registration system, which acts as the state-recognized notarial authority for property transactions.
The key difference in Riyadh is that a notary (through MOJ) authenticates and registers the transfer to make it legally binding, while a lawyer provides independent advice, contract review, and due diligence that protects your interests before you reach the notarization stage.
One essential item to include in your lawyer engagement scope for a Riyadh property purchase is verification that the property falls within a designated zone eligible for non-Saudi ownership, as this single check can prevent the most common and costly foreign buyer mistake.
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 checks should I run so I don't buy a problem property in Riyadh?
How do I verify title and ownership history in Riyadh right now?
The official authority to verify title and ownership history in Riyadh is the Real Estate Registry maintained through the Ministry of Justice system, with REGA now overseeing foreign ownership matters through the new Saudi Properties platform.
The key title document you should request to confirm ownership in Riyadh is the official title deed (saak) registered with the Ministry of Justice, which shows the current registered owner and any encumbrances on the property.
A realistic look-back period for ownership history checks in Riyadh is 10 to 15 years, allowing you to identify any patterns of frequent transfers, disputes, or irregularities that might indicate underlying problems with the property.
One clear red-flag finding that should stop or pause your purchase is discovering unresolved inheritance claims, court disputes, or title transfers that occurred without proper registration, as these suggest the seller may not have clear authority to sell.
You will find here the list of classic mistakes people make when buying a property in Riyadh.
How do I confirm there are no liens in Riyadh right now?
The standard way to confirm there are no liens or encumbrances on a Riyadh property is to request an official title extract from the Real Estate Registry through the Ministry of Justice, which shows any registered mortgages, pledges, or judicial restrictions.
One common type of lien you should specifically ask about in Riyadh is a bank mortgage from a previous financing arrangement, as many properties in the growing market have been purchased with Sharia-compliant financing that creates encumbrances until fully paid off.
The best form of written proof showing lien status in Riyadh is a clearance certificate or title extract dated close to your transaction date, confirming the property is free of encumbrances and can be transferred without outstanding claims.
How do I check zoning and permitted use in Riyadh right now?
The authority to check zoning and permitted use for a Riyadh property is the municipal planning department under the Ministry of Municipalities and Housing, with REGA providing confirmation on whether specific areas fall within designated zones for foreign ownership.
The document that typically confirms zoning classification in Riyadh is the building permit or land use certificate associated with the property, which specifies whether the use is residential, commercial, or mixed.
A common zoning pitfall foreign buyers miss in Riyadh is assuming a property in a rapidly developing neighborhood will remain residential, when master plans may designate future commercial or infrastructure development that could affect your investment or living experience.
Buying real estate in Riyadh can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Riyadh, and on what terms?
Do banks lend to foreigners for homes in Riyadh in 2026?
As of early 2026, yes, Saudi banks do lend to foreigners for homes in Riyadh, though options are more limited than for Saudi nationals, and many banks favor cash buyers or those with premium residency status and stable employment.
The realistic loan-to-value (LTV) range for foreign borrowers in Riyadh is 70% to 85%, meaning you should expect to provide a down payment of 15% to 30% of the property value.
The single most common eligibility requirement is having a valid residence permit (iqama) combined with employment at an officially recognized employer, as banks strongly prefer borrowers with documented local income and long-term stability in the Kingdom.
You can also read our latest update about mortgage and interest rates in Saudi Arabia.
Which banks are most foreigner-friendly in Riyadh in 2026?
As of early 2026, the three most foreigner-friendly banks for mortgages in Riyadh are Saudi National Bank (SNB), Al Rajhi Bank, and Emirates NBD KSA, all of which have large consumer platforms and actively market Sharia-compliant home financing products.
What makes these banks more foreigner-friendly is their willingness to process applications from expatriates with premium residency or iqama status, combined with dedicated English-language support and experience handling non-Saudi documentation.
These banks will generally lend to residents with valid iqama permits and stable employment, but lending to pure non-residents (those without any Saudi residency status) remains very limited, meaning buyers without local residency often need to finance through international banks or pay cash.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Riyadh.
What mortgage rates are foreigners offered in Riyadh in 2026?
As of early 2026, foreigners in Riyadh can expect mortgage rates ranging from approximately 4% to 8%, with variable-rate products (linked to SAIBOR) starting around 4% to 6% for well-qualified borrowers and fixed-rate products ranging from 5% to 7.5% depending on the term.
Variable-rate mortgages typically start lower but can fluctuate monthly or quarterly based on SAIBOR movements, while fixed-rate products offer payment certainty at a premium of roughly 0.5% to 1.5% higher than the variable starting rate for the fixed period.
We made this infographic to show you how property prices in Saudi Arabia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Riyadh?
What are the total closing costs as a percent in Riyadh in 2026?
The typical total closing cost for a foreign buyer in Riyadh in 2026 is approximately 7% to 10% of the purchase price, higher than for Saudi nationals due to the additional non-Saudi transaction fee introduced under the new law.
The realistic range covering most standard transactions in Riyadh is 6.5% at the low end (for cash purchases with minimal legal fees) up to 12% for financed purchases with full legal representation and broker involvement.
The specific fee categories making up total closing costs in Riyadh include: Real Estate Transaction Tax (RETT), potential non-Saudi transfer fee, broker commission, legal fees, bank processing and valuation fees (if financing), and administrative registration costs.
The single biggest contributor to closing costs in Riyadh is the 5% RETT, which applies to all property transfers, with the potential additional 5% non-Saudi fee creating the possibility of 10% in government transfer costs alone for foreign buyers.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Riyadh.
What annual property tax should I budget in Riyadh in 2026?
As of early 2026, Saudi Arabia does not impose a traditional annual property tax on residential property owners, so your ongoing budget in Riyadh should focus on service charges rather than government property taxes, typically ranging from SAR 2,000 to SAR 7,000 per year (approximately USD 530 to USD 1,870, or EUR 490 to EUR 1,730) for standard apartments and villas, with premium compounds charging more.
The main recurring cost is assessed through community service charges based on your property's square meterage and the amenities provided, typically ranging from SAR 20 to SAR 80 per square meter per year depending on whether you live in a basic building or a full-service compound.
How is rental income taxed for foreigners in Riyadh in 2026?
As of early 2026, rental income from residential property in Riyadh is generally VAT-exempt under ZATCA's real estate supplies guidance, but the exact tax treatment depends on how your rental activity is structured and whether it crosses into commercial territory or business activity thresholds.
The basic requirement for foreign owners is to ensure any rental activity complies with VAT registration rules if applicable, and to maintain proper records of rental contracts and payments in case of audit, particularly if operating multiple units or short-term rentals.
What insurance is common and how much in Riyadh in 2026?
As of early 2026, standard home insurance in Riyadh typically costs between SAR 1,000 and SAR 5,000 per year (approximately USD 265 to USD 1,330, or EUR 245 to EUR 1,230) depending on property value, type, and coverage level.
The most common type of property insurance coverage owners carry in Riyadh is building and contents insurance, which protects against fire, theft, water damage, and natural events, with banks often requiring property coverage as a condition of mortgage financing.
The biggest factor making insurance premiums higher or lower for the same property type in Riyadh is the property's location and age, with newer buildings in modern compounds commanding lower rates than older standalone villas in areas with less developed fire and security infrastructure.
Get the full checklist for your due diligence in Riyadh
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Riyadh, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Ministry of Investment (MISA) | Government body that published the official Law of Real Estate Ownership by Non-Saudis. | We used the law text as our primary reference for what foreigners can legally own in Riyadh. We cross-checked all ownership rules against the official wording. |
| Real Estate General Authority (REGA) | The sector regulator responsible for implementing the foreign ownership framework. | We used their Q&A documentation to translate legal requirements into practical buyer guidance. We also referenced the Saudi Properties platform launch for registration procedures. |
| Zakat, Tax and Customs Authority (ZATCA) | The official tax authority publishing RETT rules and VAT guidance. | We used their RETT law page and simplified guide to calculate closing costs. We also referenced their VAT exemption circular for rental income treatment. |
| Ministry of Justice | Government body overseeing property registration and notarial services. | We used their mandate to explain title verification and the official transfer process. We grounded procedural steps in their documentation ecosystem. |
| Saudi Central Bank (SAMA) | The central bank setting policy rates that influence mortgage pricing. | We used current repo rate data to anchor mortgage rate estimates. We derived realistic consumer pricing from the benchmark plus typical bank spreads. |
| Premium Residency Center | The government portal administering Saudi Arabia's Premium Residency program. | We used it as the authoritative source for residency pathway requirements. We verified property investment thresholds and program categories directly. |
| White & Case LLP | Top-tier international law firm with Saudi real estate expertise. | We used their legal analysis to clarify implementation mechanics and zone designation concepts. We triangulated their interpretation with other legal sources. |
| King & Spalding | Leading law firm publishing detailed analysis of Saudi real estate reforms. | We used their guidance on the additional non-Saudi transaction fee and registration requirements. We cross-referenced their interpretation with official law text. |
| Greenberg Traurig LLP | International law firm with deep Middle East real estate practice. | We used their analysis of resident vs non-resident ownership distinctions. We referenced their commentary on Ministry of Interior approval requirements. |
| LSEG (London Stock Exchange Group) | Official administrator of the SAIBOR benchmark rate. | We used SAIBOR data to explain variable mortgage rate mechanics. We referenced their benchmark governance to ground our rate estimates. |
| Saudipedia | Government-backed knowledge portal explaining Saudi systems and laws. | We used it to confirm the standard broker commission rate of 2.5%. We only referenced information that mirrors the underlying legal framework. |
| Visit Saudi | Official tourist visa portal for Saudi Arabia. | We used it to explain tourist visa status and its limitations for property transactions. We kept visa section practical and current. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Saudi Arabia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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