What is the process and timeline for property foreign buyers in Saudi Arabia?

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 opened up significantly to foreign buyers as part of Vision 2030.

As we reach mid-2025, the process is clearer than ever, though you'll still need to navigate specific rules and procedures. This guide answers the 12 most important questions foreign buyers ask about purchasing property in Saudi Arabia.

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:

Foreigners with valid Iqama or Premium Residency can buy residential and commercial properties in most Saudi cities, excluding Mecca, Medina, and border areas.

The process takes 1-3 months and involves government approval, with total costs including 5% transaction tax plus additional fees totaling 12-15% of property value.

Aspect	Details
Who Can Buy	Foreigners with valid Iqama (residency permit) or Premium Residency holders
Property Types Allowed	Residential (apartments, villas), commercial buildings - but not empty land
Restricted Areas	Mecca and Medina (99-year leases only), military zones, border areas
Total Timeline	1-3 months from start to ownership
Main Costs	5% transaction tax + 2.5-5% registration + 2-5% agent fees
Financing Available	Yes, but requires 30-40% down payment
Property Limit	Generally one property per person
Size Limit	Maximum 3,000 square meters for individuals

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in MENA 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.

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.

What Properties Can Foreigners Buy in Saudi Arabia and Where?

Foreigners can purchase residential properties including apartments, villas, and townhouses, as well as commercial properties like offices and shops in most major Saudi cities.

However, empty land purchases are restricted unless they're part of a major investment project exceeding SAR 30 million in value. The permitted locations include Riyadh's residential districts, Jeddah's waterfront areas, Dammam and the Eastern Province, NEOM mega-city project, King Abdullah Economic City, and other designated economic zones.

You cannot buy property in Mecca and Medina, though 99-year leases are available in these holy cities. Areas within 100 kilometers of borders, military zones, and government-restricted areas are also off-limits to foreign buyers.

The Saudi government typically limits foreigners to owning one property with a maximum size of 3,000 square meters, ensuring controlled foreign investment while maintaining local ownership priorities.

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

What's the First Step to Start Buying Property?

Your essential first step is securing a valid residency permit (Iqama) or enrolling in the Premium Residency Program if you qualify as an investor.

Without one of these documents, you cannot legally own property in Saudi Arabia, regardless of your financial capacity or property choice. If you're already employed in Saudi Arabia and have an Iqama through your employer, you can proceed immediately with your property search.

For those without employer sponsorship, the Premium Residency Program offers an alternative path. The permanent option costs SAR 800,000, while annual residency costs SAR 100,000, both providing enhanced property ownership flexibility compared to standard work visas.

This residency requirement ensures all property owners maintain genuine ties to Saudi Arabia and comply with the country's long-term development vision.

Can You Buy Property Without Being in Saudi Arabia?

Yes, you can complete your entire property purchase remotely through Saudi Arabia's advanced digital platforms.

The government has digitized much of the process through platforms like Absher and Ehkaam, allowing international buyers to submit documents, complete verifications, and sign contracts electronically. You'll need to appoint a local representative through Power of Attorney, which can be arranged through Saudi embassies or consulates in your home country.

Video verification sessions replace in-person meetings, and electronic signatures have been legally accepted since 2023. Many international buyers successfully complete their entire purchase without visiting Saudi Arabia until they collect the keys.

This digital transformation reflects Saudi Arabia's commitment to attracting foreign investment while maintaining security and regulatory compliance.

What Documents Do Foreign Buyers Need?

Foreign buyers must prepare a comprehensive document package before starting their property search to ensure smooth processing.

Document	Details
Passport copies	Current passport + copy showing first entry to Saudi Arabia
Iqama (Residency)	Valid for you and spouse if applicable
Employer letter	Confirming your income and good conduct
Bank statements	Last 6 months from Saudi bank
Property documents	Floor plan, location details, property deed from seller
Purpose declaration	State whether for personal use or investment
Investment proof	If buying for investment, show financing capability

All documents originally in languages other than Arabic must be translated by certified translators approved by the Saudi Ministry of Justice.

Having these documents ready before property viewing saves significant time during the approval process.

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Do You Need Government Approval Before Buying?

Yes, foreign buyers must obtain official government approval before signing any purchase agreement in Saudi Arabia.

The Ministry of Investment of Saudi Arabia (MISA) handles approvals for personal residences, while investment properties require an additional investment license from the same ministry. Properties valued over SAR 30 million need special investment committee approval, which involves more detailed scrutiny of funding sources and investment plans.

The approval process typically takes 2-4 weeks with complete documentation, though complex cases may require additional time. Any contract signed without proper approval is legally invalid and unenforceable in Saudi courts.

This approval system ensures foreign property ownership aligns with national development goals and security requirements.

How to Find Trustworthy Real Estate Professionals?

Finding reliable professionals is crucial for navigating Saudi Arabia's property market successfully as a foreign buyer.

Major international firms like JLL, Savills, and Knight Frank operate in Saudi Arabia and understand foreign buyer needs. Local platforms such as the AQAR App and Bayut Saudi Arabia offer extensive listings with verified agents. Always verify agent registration with the Real Estate General Authority and request references from other expatriate clients.

For legal representation, choose lawyers registered with the Saudi Bar Association who specialize in foreign property transactions. Foreign lawyers can now register via the Najiz platform, providing additional options for buyers preferring advisors from their home countries.

Avoid agents promising to bypass regulations, requesting cash-only payments, pressuring you to sign Arabic-only contracts without translation, or claiming they can secure properties in restricted areas.

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

Step-by-Step: The Complete Buying Process

The property buying process in Saudi Arabia follows a structured sequence that typically takes 1-3 months from start to finish.

Step	Action	Timeline
1	Obtain Iqama or Premium Residency	Already have or 2-4 weeks
2	Find property through agent/platform	1-2 weeks
3	Conduct due diligence on property title	3-5 days
4	Apply for MISA approval/license	2-4 weeks
5	Negotiate price and sign initial agreement	2-3 days
6	Arrange financing if needed	1-2 weeks
7	Sign final Sale & Purchase Agreement	1 day
8	Register at Notary Public Office	1-2 days
9	Pay all taxes and fees	Same day
10	Receive title deed and keys	1-2 days

Each step requires specific documentation and compliance with Saudi regulations, making professional assistance valuable throughout the process.

How Long Does Everything Take?

The total timeline for purchasing property in Saudi Arabia typically ranges from 1 to 3 months, depending on several factors.

Fast-track purchases can be completed in just one month if you have all documents ready and pay cash, eliminating financing delays. Standard transactions involving mortgage financing usually take about two months to complete all requirements and registrations.

Delayed purchases extending beyond three months typically result from incomplete documentation, property title issues, or complex investment structures requiring additional approvals. The Saudi government has streamlined approval processes as of June 2025, reducing wait times by 40% compared to 2023.

Planning ahead and maintaining organized documentation significantly impacts your timeline efficiency.

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 Are All the Costs Involved?

Budget for additional costs totaling 12-15% above the property purchase price when buying in Saudi Arabia.

The Real Estate Transaction Tax (RETT) takes the largest portion at 5% of property value, paid at registration. Registration fees add another 2.5-5%, while agent commissions typically range from 2-5% of the purchase price.

Cost Type	Amount	When Paid
Real Estate Transaction Tax (RETT)	5% of property value	At registration
Registration fee	2.5-5% of property value	At registration
Agent commission	2-5% of purchase price	After signing
Legal fees	SAR 15,000-50,000	Throughout process
Notary fees	SAR 2,000-5,000	At registration
Municipality fees	SAR 1,000-3,000	At registration
Mortgage arrangement	1% of loan amount	If financing

For a SAR 2 million apartment, expect to pay approximately SAR 240,000-300,000 in total fees and taxes beyond the purchase price.

Can Foreigners Get Mortgages in Saudi Arabia?

Saudi banks offer mortgages to foreign residents, though terms are more restrictive than those available to citizens.

Foreigners typically need 30-40% down payment compared to 15-20% for citizens, with maximum financing limited to 50% of property value. Your income must be paid through a Saudi bank account, and you need minimum two years employment with your current employer.

Interest rates for foreign buyers range from 4.5-6.5% as of June 2025. Major banks offering foreigner mortgages include Al Rajhi Bank, Saudi British Bank (SABB), Riyad Bank, Arab National Bank, and Alinma Bank.

Premium Residency holders often receive slightly better terms, reflecting their enhanced status and long-term commitment to Saudi Arabia.

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

What Mistakes Must Foreign Buyers Avoid?

Understanding common pitfalls helps foreign buyers navigate Saudi Arabia's property market successfully and avoid costly errors.

Never attempt to buy property in restricted areas like Mecca or Medina, assuming exceptions will be made. Always verify exact locations aren't restricted and obtain written confirmation from MISA before proceeding.

Title verification is crucial - always check for liens or disputes and verify the seller's actual ownership through official channels. Use qualified lawyers to review all Arabic documents, as misunderstandings can invalidate purchases.

Proceeding without official approval represents the most serious mistake. Never sign anything or pay deposits before receiving MISA approval, as contracts without proper authorization are legally void.

Work only with Real Estate General Authority registered agents, avoid cash-only transactions, and ensure all agreements are documented in writing with proper translations.

What Are Your Ongoing Obligations After Purchase?

Property ownership in Saudi Arabia comes with continuing responsibilities that foreign buyers must understand and fulfill.

Annual requirements include maintaining your property to municipal standards and paying service charges if located in a compound, which typically range from SAR 5,000-20,000 yearly. You must register all utilities in your name and ensure timely payment.

While owner-occupied homes face no property tax, rental income attracts 20% income tax for non-Saudis. When selling, you'll pay 5% capital gains tax on any profit realized.

Your property ownership remains tied to your Iqama status - if your residency expires, you have three years to sell the property. Premium Residency holders enjoy more flexibility in this regard.

Report any changes to the Land Registry, update ownership records for inheritance purposes, and notify authorities if your property use changes from residential to commercial.

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 property market offers significant opportunities for foreign buyers willing to navigate its regulatory framework.

Success requires proper residency status, thorough documentation, and professional guidance throughout the purchase process. With Vision 2030 driving market liberalization, the investment landscape continues to improve for international buyers.