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Foreigners can now legally buy property in Riyadh starting January 2026, marking a historic shift in Saudi Arabia's real estate landscape.
The new Real Estate Law allows foreign residents and companies to purchase property in designated zones within major cities like Riyadh, though certain restrictions and requirements apply compared to Saudi nationals. While ownership opportunities have expanded significantly, buyers must navigate specific zone limitations, residency requirements, and a 5% transaction tax on all purchases.
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Foreign property ownership in Riyadh becomes legal from January 2026, but only in designated zones with specific requirements including residency permits or Golden Visa status.
Property prices range from SAR 5,000-21,000/m² depending on location, with mortgages available at 2-6% profit rates for qualified foreign residents.
| Requirement | Foreign Buyers | Saudi Nationals |
|---|---|---|
| Property Zones | Designated zones only | All areas (except restricted) |
| Residency Status | Iqama or Golden Visa required | Not required |
| Transaction Tax | 5% | 5% |
| Mortgage Down Payment | 15-30% | 10-20% |
| Maximum Loan Term | 10-25 years | Up to 30 years |
| Physical Presence | Not required (proxy allowed) | Not required |
| Legal Representation | Highly recommended | Optional |
Can foreigners actually buy property in Riyadh, or are there restrictions compared to locals?
Foreigners can legally buy property in Riyadh starting January 2026 under Saudi Arabia's landmark Real Estate Law, but with significant restrictions compared to Saudi nationals.
Foreign buyers are limited to purchasing property only in designated zones within Riyadh, while Saudi nationals can buy anywhere except restricted areas near holy sites. The government will publish specific zone maps and regulations through the "Istithlaa" digital platform in late 2025, defining exactly where foreign ownership is permitted.
Unlike locals who can purchase freely, foreigners must meet residency requirements and pay the same 5% transaction tax that applies to all buyers. The new law represents a major shift from the previous complete ban on foreign property ownership, opening investment opportunities while maintaining control over strategic locations.
Foreign companies are also eligible to purchase property under the new regulations, provided they comply with the same zone restrictions and documentation requirements as individual buyers.
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Are the rules different depending on the nationality of the buyer?
The new Real Estate Law generally treats all foreign nationalities equally, with most expatriates and international investors eligible to purchase property in Riyadh's designated zones.
Non-Saudi GCC nationals, expatriates holding Premium Residency (Golden Visa), and international investors from most countries face the same basic requirements and restrictions. Nationality-based restrictions are rare but may apply to sensitive zones or for security reasons when final regulations are published.
Special executive rules that could specify nationality-based limitations will be released via the Istithlaa digital platform in late 2025, providing complete clarity on any country-specific restrictions that may apply to certain zones or property types.
The government has designed the law to attract international investment as part of Vision 2030, suggesting broad nationality inclusion rather than restrictive policies targeting specific countries.
Do foreigners need residency or a specific type of visa to own property?
Foreign individuals typically need either a valid residency permit (Iqama) or Premium Residency (Golden Visa) to own property in Riyadh as of September 2025.
The Iqama is the standard residency permit for expatriates working in Saudi Arabia, while the Premium Residency (Golden Visa) is designed for high-net-worth individuals and investors. Both documents provide the legal status required for property ownership under the new law.
Non-residents may be able to purchase property in specific investment zones, though this option appears limited and requires registration through authorized proxy with proper legal documentation. The full scope of non-resident purchasing rights will be clarified when complete regulations are published in late 2025.
For non-residents, purchasing through a notarized, Arabic-translated power of attorney is possible, but this route requires careful legal guidance to ensure compliance with all requirements and zone restrictions.
Is it necessary to be physically present in Saudi Arabia during the purchase process?
Physical presence in Saudi Arabia is not strictly required for property purchases in Riyadh, as the process can be completed remotely through proxy arrangements.
Buyers can purchase property remotely by issuing a notarized power of attorney to a trusted representative and utilizing Saudi Arabia's digital platforms such as Absher for registration and document submission. All power of attorney documents must be properly notarized and translated into Arabic to be legally valid.
However, property viewing, due diligence verification, and some final signing stages often benefit from direct involvement to ensure thorough understanding of the purchase. Many buyers prefer to be present for the initial property selection and final contract signing phases.
The government's digital transformation initiatives have made remote purchasing more feasible, though first-time buyers in the Saudi market may find physical presence valuable for building relationships with local professionals and understanding the market dynamics.
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What documents are required step by step to complete a property purchase as a foreigner?
The property purchase process in Riyadh requires specific documentation at each stage, from initial offer to final registration with government authorities.
During the offer selection phase, buyers need the cadastral extract showing property boundaries and ownership details, plus the seller's formal consent to proceed with the transaction. The due diligence stage requires obtaining a Najiz Statement and debt clearance documentation, typically handled through a lawyer or consultant to verify the property's legal status.
The contract stage involves signing the purchase agreement with complete passport details and payment scheme documentation. Government approvals require a valid Iqama or Premium Residency permit, application submission via Absher digital platform, and clearance from REGA (Real Estate General Authority) and the Ministry of Investment.
Registration requires national identification documents, tax registration numbers, and power of attorney documentation if using proxy representation. Final completion involves receiving the title deed and official registration number issued by the state registrar.
Each document must be properly translated into Arabic and authenticated through appropriate channels, with legal professionals recommended to ensure compliance with all requirements throughout the process.
Do you need to hire a lawyer or notary, or can the process be done without one?
While the property purchase process is increasingly digitalized, hiring a lawyer or legal consultant is highly recommended for foreign buyers in Riyadh due to the complexity of legal clearance and due diligence requirements.
Legal professionals provide essential services including property verification, document translation, title deed examination, and proper registration guidance that can prevent costly mistakes. First-time buyers in the Middle East market particularly benefit from professional legal support to navigate unfamiliar regulations and procedures.
Notary involvement becomes mandatory when using power of attorney for remote purchases, as all proxy documents must be properly notarized and authenticated. The notarization process ensures legal validity of remote transactions and protects buyer interests.
Although some buyers may attempt to handle simpler transactions independently, the potential risks of improper documentation, zone compliance errors, or registration mistakes typically outweigh the cost savings of professional legal assistance.
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What are the typical fees, taxes, and hidden costs involved in buying and later selling property?
| Cost Type | Amount/Percentage | When Applied |
|---|---|---|
| Real Estate Transaction Tax | 5% of property value | At purchase and sale |
| Legal Fees | 1-3% of property value | During purchase process |
| Registration Fees | Varies by property value | At final registration |
| Agent Commission | 1-5% of property value | At purchase completion |
| Property Valuation | SAR 2,000-10,000 | During due diligence |
| Document Translation | SAR 500-2,000 | Throughout process |
| Government Approval Fees | Variable | During approval stage |
Can foreigners access mortgages in Riyadh, and if so, what are the current rates, conditions, and tips for approval?
Mortgages are available to foreign residents in Riyadh with valid Iqama documents, though approval criteria are stricter than those applied to Saudi nationals.
Foreign buyers typically need a down payment of 15-30% of the property price, compared to 10-20% for locals, with maximum loan-to-value ratios of 70-85%. Loan terms extend up to 25 years for some buyers, though many banks limit foreign resident mortgages to 10 years maximum.
Current profit rates range from 2-6% using Sharia-compliant Murabaha or Ijarah financing structures, with higher rates typically applied to non-resident buyers. Banks generally require monthly salaries of SAR 25,000-30,000, with preference given to government employees or those working for major private companies.
Successful mortgage approval requires comprehensive income documentation, sufficient remaining visa validity, and banking relationships with major institutions like Al Rajhi Bank or National Commercial Bank. Remote mortgage applications are nearly impossible, making residency status essential for financing approval.
Tips for approval include maintaining strong employment history, providing complete financial documentation, ensuring adequate debt-to-income ratios, and working with experienced mortgage brokers familiar with foreign resident requirements.
What are the best areas in Riyadh for foreigners to live, invest, or expect capital appreciation, and how do liveability and rental yields compare?
Al Olaya district stands out as the premier choice for foreign property buyers, offering business center proximity, extensive shopping options, high rental income potential, and strong capital appreciation prospects.
Al Nakheel provides a modern lifestyle with family-friendly amenities and delivers some of the city's top rental yields, making it attractive for both living and investment purposes. The area combines residential comfort with investment returns, particularly appealing to expatriate families.
Emerging zones including Al Malaz, Hittin, and Al Yasmin offer growth potential for expat investors, with new developments likely to be designated specifically for foreign buyers under the new ownership rules. These areas represent opportunities for early investment in expanding neighborhoods.
Liveability ranks highest in central business districts and planned Vision 2030 neighborhoods, where infrastructure development and amenities meet international standards. Rental yields typically range from 4-7% depending on location and property type, with appreciation prospects strongest in core areas and designated growth clusters.
Foreign buyers should focus on areas with confirmed designation status for foreign ownership, established expat communities, and proximity to international business districts for optimal investment and lifestyle outcomes.
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 are the current property prices and trends across different neighborhoods and regions of Riyadh?
Property prices in Riyadh vary significantly by location, with Al Olaya commanding premium rates of SAR 11,000-21,000 per square meter for luxury high-rise developments in the business district.
Mid-range areas like Al Malaz offer more accessible pricing at SAR 7,500-13,000 per square meter for apartments and townhouses, providing good value for families and investors seeking moderate entry points into the Riyadh market.
Suburban areas typically price between SAR 5,000-10,000 per square meter, with prices remaining relatively stable but showing upward momentum in Vision 2030 development zones where major infrastructure projects are planned or underway.
Market trends show significant price increases following the announcement of the new foreign ownership law, with high demand expected from international investors entering the market for the first time. Major appreciation is anticipated in areas where new foreign ownership zones are officially designated.
As of September 2025, the Riyadh residential market is experiencing a pre-opening surge in interest, with developers and agents reporting increased inquiries from foreign buyers preparing for the January 2026 implementation of the new ownership rules.
What are the fiscal implications of owning property, such as income tax on rental earnings or other levies?
Property owners in Riyadh face no income tax on rental proceeds under current Saudi tax regulations, making rental property investment particularly attractive from a fiscal perspective.
Annual property levies and maintenance fees apply to property owners, with amounts varying based on property size, location, and type. These ongoing costs should be factored into investment calculations for accurate return projections.
Capital gains tax applies when selling property, calculated at the time of sale based on the property's appreciation. The 5% transaction tax also applies to sales, matching the rate charged on purchases.
Commercial property may face different levy structures depending on business use, with rates and requirements varying based on the specific commercial activity conducted on the property.
Property owners should maintain detailed records of all expenses, improvements, and rental income to ensure compliance with tax obligations and optimize their fiscal position when selling or reporting rental activities.
What are the most common mistakes and pitfalls foreigners face when buying property in Riyadh, and how can they be avoided?
The most critical mistake is purchasing property outside designated foreign ownership zones, which invalidates the entire transaction and can result in complete loss of investment.
Common pitfalls include:
- Insufficient due diligence on property titles, encumbrances, or seller authority verification
- Translation and registration errors from incorrectly completed Arabic documentation
- Underestimating total transaction costs including legal fees, agent commissions, and tax obligations
- Ignoring mortgage requirements such as Iqama status or stable income documentation
- Failing to verify agent credentials and licensing in the Saudi real estate market
These mistakes can be avoided by engaging trusted local lawyers for verification and guidance, confirming zone eligibility before making offers, ensuring professional translation of all documents, thoroughly checking agent credentials and references, and budgeting comprehensively for all associated costs.
Working with experienced professionals who understand both international buyer needs and Saudi regulations provides the best protection against costly errors in this newly opened market.
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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.
Foreign property ownership in Riyadh represents a groundbreaking opportunity beginning January 2026, but success requires careful navigation of new regulations, zone restrictions, and documentation requirements.
Smart investors will engage legal professionals, verify zone eligibility, secure proper residency status, and budget comprehensively for all costs to capitalize on this historic market opening while avoiding common pitfalls.
Sources
- White & Case - Saudi Arabia Approves Landmark Real Estate Ownership Law for Non-Saudis
- Aqar - 2025 Guide to Property Ownership in Saudi Arabia for Non-Saudis
- Times of India - Saudi Property Buying Rules: What Expats and Investors Need to Know
- Curtis Law - Saudi Arabia's New Law on Foreign Ownership of Real Estate
- AHYSP - Saudi Arabia Foreign Property Ownership: A Transformational Shift
- King & Spalding - Saudi Arabia Introduces New Legal Framework for Foreign Ownership of Real Estate
- Sands of Wealth - How to Buy Property in Saudi Arabia
- YB Case - Real Estate Services in Saudi Arabia
- Expatica - Mortgages in Saudi Arabia
- HKTDC Research - Saudi Arabia Real Estate Market Research