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 has recently transformed its property ownership rules for foreigners, opening doors that were previously closed to non-Saudi buyers.
This guide walks you through what you can legally buy in the Kingdom, what ownership rights you actually get, and how the process works step by step.
We keep this article updated with the latest regulatory changes, tax rates, and mortgage conditions as of the first half of 2026.
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 Saudi Arabia.
Insights
- The updated Saudi foreign ownership law works through designated zones, meaning your ability to buy depends more on where the property sits than on your nationality alone.
- Makkah and Madinah remain high-restriction areas for foreigners in Saudi Arabia, with special rules that differ from the rest of the country even under the new 2026 framework.
- Closing costs in Saudi Arabia typically range from 6% to 9% when the buyer pays the 5% Real Estate Transaction Tax, but can drop to 1% to 4% if the seller covers it.
- Foreigners buying property in Saudi Arabia face practical hurdles on a tourist visa, especially around opening bank accounts and completing digital government workflows.
- Saudi Arabia does not have a traditional annual property tax for residential homeowners, but vacant land can trigger a White Land Tax of around 2.5% of value.
- Mortgage rates for qualified expatriate residents in Saudi Arabia in January 2026 typically fall between 5.8% and 7.8%, with a midpoint around 6.5%.
- Buying property in Saudi Arabia does not automatically grant residency or citizenship, though Premium Residency programs exist for long-term stays without employer sponsorship.
- The Real Estate General Authority (REGA) is the key regulator, and its designated zone publications determine exactly where foreigners can legally own property in Saudi Arabia.
- All property transfers in Saudi Arabia must go through official digital platforms like Najiz and the ZATCA tax portal, making paperwork highly formalized.
- Residential rental income for individuals in Saudi Arabia is generally not subject to personal income tax, and VAT on residential leasing is typically treated as exempt.
What can I legally buy and truly own as a foreigner in Saudi Arabia?
What property types can foreigners legally buy in Saudi Arabia right now?
As of early 2026, foreigners in Saudi Arabia can generally buy apartments, villas, duplexes, townhouses, and units in residential compounds, but only if the property is located within a government-approved designated zone.
The single most important legal condition is that the property must sit inside one of the zones where non-Saudi ownership is permitted under the Real Estate General Authority's framework, which also distinguishes between resident and non-resident buyers.
This means you cannot simply choose any property you like across the Kingdom; you need to confirm with REGA's official publications that the specific district or project allows foreign ownership before committing any money.
Off-plan purchases follow the same logic, so even if you're buying from a developer before construction is complete, you still need zone eligibility to register the property in your own name later.
Finally, please note that our pack about the property market in Saudi Arabia is specifically tailored to foreigners.
Can I own land in my own name in Saudi Arabia right now?
Yes, foreigners can own land in their own name in Saudi Arabia, but only within the same designated zone framework that governs all foreign real estate ownership in the country.
When you buy a residential unit like a villa or apartment in Saudi Arabia, your ownership typically includes the legal land interest tied to that title, so you're not just getting the building but also the plot underneath or your share of it.
Buying an empty land plot as a foreign individual is more restricted in practice, with additional conditions that often apply under the implementing rules, which is why most foreign buyers focus on completed residential units rather than bare land.
As of 2026, what other key foreign-ownership rules or limits should I know in Saudi Arabia?
As of early 2026, the most important rule that affects purchases is that Makkah and Madinah remain special high-restriction areas where foreign ownership is subject to unique conditions, and you should rely on REGA's official zone publications before spending money in these cities.
Saudi Arabia does not use a traditional foreign-ownership quota system for apartments or condos like some Asian countries do, but the designated zones model effectively controls where foreigners can buy rather than how many units they can own in a building.
One key registration requirement is that all transfers must go through official digital government platforms, including the Najiz system and the ZATCA tax portal, which means you need a recognized digital identity to complete transactions.
The most notable recent regulatory change is the updated foreign ownership law itself, which introduced the designated zones framework and REGA supervision, with implementing rules still being rolled out and refined through 2026.
If you're interested, we go much more into details about the foreign ownership rights in Saudi Arabia here.
What's the biggest ownership mistake foreigners make in Saudi Arabia right now?
The biggest mistake foreigners make in Saudi Arabia is buying a property they cannot legally register as their right, either because it sits outside an approved designated zone or because zone eligibility has not yet been clearly confirmed by REGA.
If you make this mistake, you may find yourself stuck with a side agreement or informal beneficial interest that Saudi authorities will not recognize or enforce, leaving you without legal protection if anything goes wrong.
Other classic pitfalls in Saudi Arabia include accepting nominee arrangements that don't give you clean registered ownership, skipping the mandatory RETT tax registration on ZATCA's platform, and assuming creative structures will work out later when the reality is that unregistered rights have no legal standing.
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 Saudi Arabia?
Do I need a specific visa to buy property in Saudi Arabia right now?
Saudi Arabia's new foreign ownership framework technically allows eligible non-Saudis including some non-residents to own property within the regulated model, but a tourist visa creates practical friction because you may struggle with banking access and digital identity steps required to complete transactions.
The single most common administrative barrier for buyers without local residency is opening and using a Saudi bank account, which is much easier with an iqama (resident ID) or Premium Residency than with just a tourist visa and passport.
You do not need a separate tax ID number like in some countries, but you do need a recognized identity in the transaction workflow and must complete RETT compliance through ZATCA's real estate platform as part of every transfer.
A typical document set for a foreign buyer in Saudi Arabia includes your passport, proof of identity recognized by the platform (iqama if resident), the property's electronic deed reference, and evidence of RETT payment registration through ZATCA.
Does buying property help me get residency and citizenship in Saudi Arabia in 2026?
As of early 2026, buying property in Saudi Arabia does not automatically grant you residency or citizenship, as the Kingdom uses program-based residency pathways rather than a simple "buy property, get status" model.
Premium Residency is the main official option for foreigners who want long-term stability in Saudi Arabia without employer sponsorship, and while property ownership can be part of your profile, it is not the single determining factor.
The Premium Residency program has its own eligibility criteria and application process, and many foreigners actually buy homes in Saudi Arabia because they already have residency through employment or family rather than expecting the purchase itself to unlock status.
We give you all the details you need about the different pathways to get residency and citizenship in Saudi Arabia here.
Can I legally rent out property on my visa in Saudi Arabia right now?
Your visa status in Saudi Arabia does not directly prohibit you from renting out property you legally own, but you should document your lease through the official Ejar rental registration system to ensure protection and enforceability.
You do not need to live in Saudi Arabia to rent out your property, and managing from abroad is common as long as you use a licensed property manager or broker and keep everything contract-based and properly documented.
Important details for foreign landlords include that residential rental income is generally not subject to personal income tax in Saudi Arabia, and VAT on residential leasing is typically treated as exempt under ZATCA's guidance, so your tax burden is lighter than you might expect from other countries.
We cover everything there is to know about buying and renting out in Saudi Arabia here.
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How does the buying process actually work step-by-step in Saudi Arabia?
What are the exact steps to buy property in Saudi Arabia right now?
The standard sequence in Saudi Arabia is: confirm the property is in an approved zone for foreigners, agree on price and terms, conduct due diligence on title and liens, complete the transfer workflow through official digital platforms, register and pay the 5% RETT via ZATCA, and then finalize the electronic deed transfer to receive your ownership record.
You do not always need to be physically present in Saudi Arabia, but if you are not a resident, you should expect to need a local representative with power of attorney or work with a developer whose process is designed for remote buyers.
The step that typically makes the deal legally binding is when the official deed transfer is completed through government channels, as this is when your ownership is formally registered in the system.
The typical end-to-end timeline from accepted offer to final registration in Saudi Arabia ranges from a few weeks for straightforward transactions to two months or more if there are financing, documentation, or zone confirmation delays.
We have a document entirely dedicated to the whole buying process our pack about properties in Saudi Arabia.
Is it mandatory to get a lawyer or a notary to buy a property in Saudi Arabia right now?
In Saudi Arabia, there is no traditional notary requirement because the government's official digital platforms effectively play the notary role by documenting and formalizing the transfer through the electronic deed system.
The key difference is that while the official transfer channels handle the formalization of ownership, a lawyer can advise you on contract terms, zone eligibility, and risk issues that the platform itself does not evaluate for you.
If you hire a lawyer for a property purchase in Saudi Arabia, one key item to include in their scope is verifying that the property sits within an approved zone for foreign ownership and that no hidden encumbrances or eligibility issues could block your registration.
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 Saudi Arabia?
How do I verify title and ownership history in Saudi Arabia right now?
The official registry for verifying title and ownership history in Saudi Arabia is the electronic deed system accessible through Najiz and government service portals, where you can confirm that the seller is the registered owner.
The key document you should request is the electronic deed reference or title record, which shows current ownership and confirms the property is properly registered rather than an informal subdivision or undocumented unit.
A realistic look-back period for ownership history checks in Saudi Arabia is typically 10 to 15 years, which helps identify any patterns of disputes, frequent transfers, or irregularities that could signal problems.
One clear red flag that should stop or pause a purchase is finding unresolved court restrictions, claims, or gaps in the registration history that suggest the property's ownership chain is not clean.
You will find here the list of classic mistakes people make when buying a property in Saudi Arabia.
How do I confirm there are no liens in Saudi Arabia right now?
The standard way to confirm there are no liens or encumbrances on a property in Saudi Arabia is to check the electronic deed record through official channels and require the seller to provide documentation showing the property is free of charges or restrictions.
The most common type of lien to ask about specifically in Saudi Arabia is a mortgage or bank charge, as many properties are financed and the lending bank must release its security before a clean transfer can happen.
The best form of written proof is a clear electronic deed record showing no registered encumbrances, combined with a release letter from any financing bank if a mortgage was previously in place.
How do I check zoning and permitted use in Saudi Arabia right now?
The authority to check zoning and permitted use for a property in Saudi Arabia is the relevant municipal planning office, and for master-planned communities, the developer's own approvals and planning documents.
The document that typically confirms zoning classification in Saudi Arabia is the municipal planning permit or land use certificate, which shows whether the property is approved for residential, commercial, or mixed use.
One common zoning pitfall foreign buyers miss in Saudi Arabia is purchasing something marketed as residential that is actually classified differently or sits in a zone where foreign ownership is not permitted, which only becomes clear when you try to register the transfer.
Buying real estate in Saudi Arabia 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 Saudi Arabia, and on what terms?
Do banks lend to foreigners for homes in Saudi Arabia in 2026?
As of early 2026, Saudi banks do lend to foreigners for home purchases, but in practice most "foreigner mortgages" are actually expatriate resident mortgages for people with an iqama and stable local income rather than fly-in nonresident buyers.
Foreign borrowers in Saudi Arabia most commonly see loan-to-value ratios ranging from 70% to 85%, meaning you should expect to put down at least 15% to 30% of the property price as a deposit.
The single most common eligibility requirement is having residency status with salary transfer to the lending bank, as Saudi banks strongly prefer borrowers whose income they can verify and control through their own accounts.
You can also read our latest update about mortgage and interest rates in Saudi Arabia.
Which banks are most foreigner-friendly in Saudi Arabia in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Saudi Arabia include Saudi National Bank (SNB), Al Rajhi Bank, and Riyad Bank, all of which have significant retail home finance operations and experience working with expatriate residents.
What makes these Saudi banks more foreigner-friendly is their established processes for handling expatriate documentation, salary transfer requirements, and their willingness to work with buyers who have stable employer sponsorship.
Most Saudi banks will lend to foreign residents with an iqama and local income, but lending to non-residents without local ties is uncommon, so you will likely need residency status to access mortgage financing.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Saudi Arabia.
What mortgage rates are foreigners offered in Saudi Arabia in 2026?
As of early 2026, foreigners with residency and good profiles typically see mortgage rates in Saudi Arabia ranging from about 5.8% to 7.8%, with a strong midpoint estimate around 6.5% for well-qualified expatriate borrowers.
Fixed-rate products in Saudi Arabia tend to offer more certainty but may price slightly higher than variable-rate options, though the difference is usually within 0.5 to 1 percentage point depending on the bank and loan tenor.
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 Saudi Arabia?
What are the total closing costs as a percent in Saudi Arabia in 2026?
The typical total closing cost percentage in Saudi Arabia in 2026 is around 6% to 9% of the property price when the buyer pays the Real Estate Transaction Tax, but this drops to roughly 1% to 4% when the seller covers RETT.
The realistic range reflects how costs are negotiated in Saudi transactions, with the low end covering situations where the seller absorbs RETT and the high end including buyer-paid tax, brokerage, and financing fees.
The specific fee categories that make up closing costs in Saudi Arabia include the 5% RETT, brokerage commission (typically 1% to 2.5%), mortgage-related costs if financing (0.5% to 1.5%), and smaller administrative charges for documents and translations.
The single biggest contributor to closing costs in Saudi Arabia is the 5% Real Estate Transaction Tax administered by ZATCA, which alone accounts for most of the total when the buyer is responsible for it.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Saudi Arabia.
What annual property tax should I budget in Saudi Arabia in 2026?
As of early 2026, Saudi Arabia does not have a traditional annual property tax for owner-occupied residential homes, so most homeowners budget effectively 0 SAR (0 USD, 0 EUR) for this specific expense, though vacant land owners may face the White Land Tax of around 2.5% of value.
The main ongoing costs that feel like property taxes in Saudi Arabia are building or compound service charges for managed properties, municipality fees embedded in utilities, and the White Land Tax for vacant plots rather than a standard annual assessment on your home's value.
How is rental income taxed for foreigners in Saudi Arabia in 2026?
As of early 2026, the effective tax rate on rental income for individual foreign owners in Saudi Arabia is typically 0%, as the Kingdom does not apply personal income tax to individuals and residential leasing is generally VAT-exempt under ZATCA's framework.
Foreign owners do not have a specific filing or withholding requirement for rental income as individuals, but you should register your lease through the Ejar system and ensure all documentation is proper in case your situation ever changes to a business structure.
What insurance is common and how much in Saudi Arabia in 2026?
As of early 2026, a standard home insurance policy in Saudi Arabia typically costs between 0.10% and 0.30% of the property's insured value per year, which for a 2 million SAR home (roughly 530,000 USD or 490,000 EUR) means around 2,000 to 6,000 SAR annually (530 to 1,600 USD or 490 to 1,475 EUR).
The most common type of property insurance coverage in Saudi Arabia is building or structure insurance, which protects against fire, natural events, and structural damage, and is often required if you have a mortgage.
The biggest factor that makes insurance premiums higher or lower for the same property type in Saudi Arabia is the location and building construction quality, with properties in areas more exposed to extreme heat or flooding and older buildings typically costing more to insure.
Get the full checklist for your due diligence in Saudi Arabia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Saudi Arabia, 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 |
|---|---|---|
| Real Estate General Authority (REGA) | The official Saudi regulator responsible for the foreign ownership framework. | We used it to anchor what changes as of the first half of 2026 and what REGA says is coming next with zones and implementing rules. We treated it as our primary source for the direction of the legal framework. |
| REGA Overview PDF | A regulator-issued explainer of the new ownership regime. | We used it to summarize the core design including the zoned model and REGA supervision. We cross-checked it against independent legal analyses to ensure accuracy. |
| REGA Q&A Document | Official REGA guidance written for the public in Q&A form. | We used it to translate legal structure into plain-language rules an individual buyer can act on. We shaped our low cognitive load explanations from this source. |
| ZATCA RETT Platform Guide | Issued by the Saudi tax authority that administers the Real Estate Transaction Tax. | We used it to confirm what RETT is, the 5% rate, and that payment happens electronically. We built our closing cost estimates and timeline from this guide. |
| ZATCA RETT Guideline | A formal ZATCA guideline describing how the tax works in practice. | We used it to explain who is responsible for compliance and what kinds of transfers are in scope. We supported our due diligence advice with this source. |
| ZATCA VAT Exemption Guidance | The tax authority's official guidance on VAT treatment in real estate. | We used it to clarify how VAT interacts with real estate supplies in plain language. We kept the tax section accurate and avoided confusion between VAT and RETT. |
| Saudi National Portal (my.gov.sa) | The Saudi government portal describing official digital procedures. | We used it to outline how property transfers work and what platforms you will use. We cross-checked this with official Najiz descriptions. |
| White & Case | A top-tier international law firm tracking Saudi legal changes closely. | We used it to triangulate what is genuinely new versus what was already possible. We validated the designated zones concept and category distinctions. |
| King & Spalding | A top-tier law firm summarizing Saudi legal changes with dated milestones. | We used it mainly for dated milestones and to sanity-check practitioner interpretations. We treated it as a cross-check rather than a primary source. |
| National Competitiveness Center (Istitlaa) | The Saudi government's formal consultation platform for draft regulations. | We used it to confirm executive regulations exist and were consulted on. We explained why some practical details may still be finalized by REGA decisions. |
| Saudi eVisa Portal | The official government portal for Saudi visas. | We used it to ground visa status statements and avoid relying on third-party summaries. We framed what being on a tourist visa means for banking and identity steps. |
| Premium Residency Center | The official portal for Saudi Premium Residency programs. | We used it to describe how Premium Residency can change your practical ability to transact. We kept residency discussion tied to official policy. |
| Ejar Portal | The official Saudi rental registration system. | We used it to confirm how renting is formalized in Saudi Arabia. We based our rental documentation advice on this official source. |
| PwC Tax Summaries | A widely used professional reference regularly reviewed and updated. | We used it to confirm the no personal income tax baseline. We cross-checked it alongside ZATCA guidance for accuracy. |
| Ministry of Municipalities White Land Tax Law | The official law governing taxation of vacant land in Saudi Arabia. | We used it to explain how vacant land is treated differently from built properties. We anchored our White Land Tax discussion in the official text. |
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.