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 opened its residential property market to foreign buyers in January 2026, making this one of the most significant legal changes for expats and overseas investors in the country's history.
For US citizens specifically, that means there is now a clear legal path to owning a home in Riyadh, Jeddah, or other permitted cities, but the rules around where you can buy, how to finance it, and what taxes you owe are worth understanding before you start.
We keep this blog post regularly updated so that the information you read here reflects the latest regulations, tax rules, and mortgage conditions in Saudi Arabia.
And if you're planning to buy a property in Saudi Arabia, you may want to download our pack covering the real estate market in Saudi Arabia.
Can a US citizen legally buy residential property in Saudi Arabia right now?
Can I buy a home in Saudi Arabia as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Saudi Arabia under the new Non-Saudi Property Ownership Law, which entered into force on January 22, 2026, through REGA's official "Saudi Properties" portal.
To buy, you apply through REGA's "Saudi Properties" portal, where your eligibility is checked against the permitted zones and property types before a transaction can proceed.
That said, this is not a blanket "buy anywhere" situation: what you can buy and where will depend on a geographical zoning document that REGA expected to publish in Q1 2026, so you should verify eligibility property by property before committing.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Saudi Arabia.
Are there many Americans buying property and living in Saudi Arabia in 2026?
As of early 2026, a US State Department publication references around 80,000 Americans supported by the US Mission in Saudi Arabia, though the number who actually own property is a much smaller subset, estimated in the low thousands given that the ownership framework only just launched in January 2026.
The highest concentrations of American expats and property owners are in Riyadh, particularly the Diplomatic Quarter, Al Olaya, and Sulaimaniyah, and in Jeddah in districts such as Al Hamra and Al Zahra, which have historically hosted multinational company employees.
The top three reasons Americans choose to buy rather than rent in Saudi Arabia in 2026 are long-term employment contracts with major Saudi corporations or government entities, the relative affordability of high-quality housing compared to comparable US cities, and the growing appeal of Vision 2030 projects creating new investable neighborhoods.
The American expat community in Saudi Arabia has remained broadly stable in recent years but is expected to grow modestly through 2026 and beyond as Vision 2030 megaprojects bring in more international talent and the new ownership law removes a longstanding barrier to putting down roots.
Do foreigners have the same buying rights as locals in Saudi Arabia?
Foreigners, including US citizens, have significantly fewer buying rights than Saudi nationals in 2026: Saudis can buy freely across the country, while non-Saudis are restricted to REGA-approved zones and property categories under the new ownership framework, with no distinction between Americans and other foreign nationalities in the law itself.
The clearest off-limit areas for all foreign buyers, regardless of nationality, are properties in or around Makkah and Madinah, where REGA explicitly restricts individual non-Muslim ownership, and any zones not yet designated as eligible in REGA's upcoming zoning document.
We cover all these things in length in our pack about the property market in Saudi Arabia.
Can I buy property in Saudi Arabia without a residence permit?
You do not need a Saudi residence permit to buy property in Saudi Arabia in 2026, because REGA's framework explicitly covers both residents and non-residents, meaning someone living abroad can apply through the official portal.
If you are buying from abroad, the process typically involves using a power of attorney to authorize a local representative to handle signing steps and notarization on your behalf, and arranging international fund transfers in a way that satisfies Saudi anti-money laundering checks.
Buying a home in Saudi Arabia does not automatically grant you a visa or residency: property ownership and immigration status are two completely separate things, and if you want residency, you need to apply separately through the Premium Residency program at the official government portal.
The main practical challenge for non-resident buyers completing the purchase remotely is managing the banking and payment side, since sending large international transfers and opening a local account often require in-person steps or carefully arranged power of attorney documentation.
Can US citizens own land in Saudi Arabia?
US citizens may be able to own land in Saudi Arabia in 2026, but it is a more restricted category than apartments or built residential units, and whether a specific plot is eligible will depend entirely on the geographical zoning document REGA was expected to publish in Q1 2026.
Saudi law recognizes both full ownership (what you might call freehold in everyday language) and other in-rem rights such as long-term use arrangements, and REGA's own materials use the phrase "in-rem rights" as the legal umbrella, meaning what you actually get can vary by zone and asset type.
The two areas where land ownership is most clearly off the table for foreigners in 2026 are Makkah and Madinah, where individual non-Muslim ownership is restricted, and any zone not yet designated as eligible under the new framework.
What documents will I need to buy in Saudi Arabia?
As a US citizen buying property in Saudi Arabia in 2026, you will typically need a valid passport with certified copies, proof of funds and source of funds (especially if buying from abroad), a power of attorney if you will not be present for signing, and if resident, your Iqama (residence permit) for banking and identity checks.
A local tax identification number is not always required in the same way as in European countries, but residents use their Iqama number and non-residents are generally identified by passport throughout the REGA portal process, while companies need a unified commercial registration number.
You do not legally need a local Saudi bank account in every scenario, but in practice you almost certainly will need one to pay RETT, transfer funds to developers, and service a mortgage, making it a near-essential step that US buyers should start early given FATCA onboarding paperwork.
Banks and notaries in Saudi Arabia typically require proof of funds in the form of official bank statements, and some transactions involving non-residents may also require authentication of foreign documents through the Saudi embassy or an apostille process.
We have a whole section dedicated to all the documents you need in our Saudi Arabia property pack.
Can a foreign-owned company buy property in Saudi Arabia?
Yes, foreign-owned companies can buy residential property in Saudi Arabia in 2026 because REGA's framework explicitly includes non-Saudi companies and entities in the ownership service, subject to the same zone and category rules that apply to individual foreign buyers.
Americans using a corporate structure in Saudi Arabia most commonly do so through a Saudi-registered limited liability company (LLC), known locally as a "sharika," though the setup involves licensing, commercial registration, and ongoing compliance costs that add complexity compared to buying personally.
Holding property through a company does not automatically lower your tax burden in Saudi Arabia, and for a home you plan to live in rather than operate as a business, it can create more tax complications than it solves, particularly around Saudi income tax rules for entities conducting business activities.
The main drawback of company ownership for residential property in Saudi Arabia is the additional administrative burden: you will need to maintain a registered company, file annual accounts, and potentially face corporate income tax obligations that do not apply when you buy as an individual.
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What taxes and fees will I pay in Saudi Arabia in 2026?
What are buyer taxes in Saudi Arabia in 2026?
As of early 2026, the main buyer-side tax in Saudi Arabia is the Real Estate Transaction Tax (RETT) at 5% of the purchase price, meaning on a SAR 2,000,000 property (around $530,000 or roughly 490,000 EUR), you pay SAR 100,000 in tax alone (about $27,000 or 25,000 EUR).
RETT at 5% is currently the only major transaction tax for buyers; there is no stamp duty on top, no VAT on residential transactions between private parties, and no additional transfer tax layered over the RETT.
Foreigners and locals pay the same 5% RETT rate in Saudi Arabia in 2026, and there is no surcharge for non-Saudi buyers or for investment purchases as opposed to primary residences.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Saudi Arabia.
What are other closing costs in Saudi Arabia in 2026?
As of early 2026, a cash buyer in Saudi Arabia should budget a total of around 6% to 8% of the purchase price for all closing costs combined, meaning on a SAR 2,000,000 property (about $530,000 or 490,000 EUR) you are looking at SAR 120,000 to 160,000 in total transaction costs (roughly $32,000 to $43,000 or 30,000 to 39,000 EUR).
Beyond RETT (5%), the main closing cost categories are: brokerage commission at up to 2.5% of the purchase price (SAR 50,000 or about $13,000 or 12,000 EUR on a SAR 2M deal), plus notary and document handling fees that are typically a few hundred to a low few thousand SAR and are modest by international standards.
The brokerage commission is one of the more negotiable items, since the Saudi Ministry of Commerce has published a cap of 2.5% but deals between willing parties can result in a lower figure, particularly in a slower market or on larger-value properties.
The closing cost that surprises foreign buyers most in Saudi Arabia is the RETT itself, because unlike many countries where tax is split between buyer and seller or applies to a smaller base, in Saudi Arabia the full 5% lands entirely on the buyer with no sharing convention.
Are there hidden fees foreigners miss in Saudi Arabia right now?
In a typical SAR 2,000,000 property deal in Saudi Arabia in early 2026, the easily overlooked costs can add up to SAR 10,000 to 30,000 (about $2,600 to $8,000 or 2,400 to 7,400 EUR) on top of what buyers have already budgeted for.
The three fees foreign buyers most often fail to budget for in Saudi Arabia in 2026 are: informal or double agent commissions charged without written documentation (potentially SAR 10,000 to 50,000 or $2,600 to $13,000), FATCA-related bank onboarding delays that can force costly last-minute workarounds for US citizens, and document translation and notarization fees for foreign papers that can reach SAR 2,000 to 5,000 (about $500 to $1,300) depending on complexity.
After purchase, the ongoing annual costs that foreign property owners often underestimate in Saudi Arabia include building service charges in gated communities and new developments (SAR 5,000 to 30,000 or $1,300 to $8,000 per year depending on unit type), plus maintenance reserve funds that compound significantly on villa-type properties.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Saudi 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.
Can I get a mortgage as a US citizen in Saudi Arabia in 2026?
Do banks lend to US citizens in Saudi Arabia in 2026?
As of early 2026, Saudi banks do lend to US citizens, but approval is much more straightforward for those who are legal residents with a stable Saudi-based salary than for non-residents or people earning their income entirely in the US.
US citizens are not treated better or worse than other foreign nationals specifically because of their nationality: the main variables are employment status, salary transfer, income level, and credit history, not which passport you hold.
The main reason some Saudi banks are hesitant to lend to American borrowers specifically is FATCA compliance: US customers require additional regulatory onboarding that takes longer and adds cost for the bank, which can translate into more cautious underwriting or slower approvals.
For US citizens who are resident in Saudi Arabia with a stable employer and salary transfer, approval is realistic at major banks; for non-residents earning income abroad, success is less common and usually requires a significantly larger down payment and stronger documentation.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Saudi Arabia.
What down payment do American people need in Saudi Arabia in 2026?
As of early 2026, the realistic minimum down payment for a US citizen buying a SAR 2,000,000 home (about $530,000 or 490,000 EUR) in Saudi Arabia is around 20%, which means having roughly SAR 400,000 (about $107,000 or 98,000 EUR) ready in cash before you approach a lender.
In practice, the down payment range for foreign buyers in Saudi Arabia runs from about 10% at best (for strong resident profiles with salary transfer at a major bank) up to 30% or more for non-residents or buyers with income from outside the country.
Yes, a larger down payment does improve your terms: it typically results in a lower interest rate margin and sometimes unlocks access to banks that would otherwise decline non-resident applications altogether.
You can also read our latest update about mortgage and interest rates in Saudi Arabia.
What interest rates do US citizens get in Saudi Arabia in 2026?
As of early 2026, US citizens applying for a Saudi mortgage should expect an interest rate in the range of 5.5% to 7.5% per year, depending on their residency status, employer category, down payment size, and whether they transfer their salary to the lending bank.
Foreign buyers generally pay slightly higher rates than Saudi nationals or long-established residents because they represent a higher perceived credit risk to local banks, and the gap can be 0.5 to 1.5 percentage points in typical deals.
Fixed-rate products are available in Saudi Arabia and are the more common choice for foreign buyers who want payment certainty, with terms typically running 15 to 25 years, though variable-rate products tied to SAMA's repo rate also exist and may start lower.
The single biggest factor affecting the rate you are offered in Saudi Arabia is whether you transfer your monthly salary to the lending bank, because salary transfer is used as the primary credit security mechanism in Saudi retail lending and its presence or absence can move your rate by a full percentage point or more.
Can I use US income to qualify in Saudi Arabia right now?
US-sourced income is accepted by some Saudi banks for mortgage qualification, but it is treated with caution and usually requires a larger down payment and more documentation than local Saudi income, because most banks prefer underwriting against a salary being transferred directly into a Saudi account.
Saudi banks typically ask US-income applicants for the last three to six months of US bank statements, official pay stubs or an employer letter, recent US tax returns (which can be a surprise for buyers from countries without annual filing requirements), and sometimes a Saudi-notarized translation of those documents.
If standard US income documentation is insufficient on its own, some banks will accept a letter of good standing from a major international employer with a Saudi presence, or will require a larger down payment as a compensating factor rather than outright rejecting the application.
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How do US taxes interact with owning property in Saudi Arabia?
Do I have to declare the property to the IRS from Saudi Arabia?
As a US citizen owning property in Saudi Arabia, you do not typically need to file a special IRS form just because you own foreign real estate, but you must report any income that property generates, such as rental income, on your US federal tax return.
There is no standalone "foreign real estate ownership" form comparable to the FBAR (FinCEN 114) for bank accounts, but if you hold the property through a foreign entity, additional forms such as Form 5471 (for foreign corporations) or Form 8865 (for foreign partnerships) may apply.
Simply owning a home in Saudi Arabia and living in it yourself does not trigger a reporting event with the IRS on its own, but selling it for a gain or renting it out are both taxable events that you must report as a US citizen, regardless of whether Saudi Arabia taxes the same transaction.
Will I pay tax twice in the US and Saudi Arabia in 2026?
As of early 2026, the risk of meaningful double taxation for US citizens owning property in Saudi Arabia is relatively low for pure homeowners (no rental income, no sale), because Saudi Arabia does not impose an annual residential property tax or income tax on individuals, but the risk rises sharply if you start earning rental income or sell at a gain.
There is no comprehensive income tax treaty between the United States and Saudi Arabia, which means you cannot rely on treaty-based protections to eliminate double taxation the way you could in France or Germany, so your main tool is the US Foreign Tax Credit rather than a bilateral agreement.
The Foreign Tax Credit allows you to offset taxes you actually paid to Saudi Arabia against your US tax liability on the same income, which works well when you have paid a clear, documented tax in Saudi Arabia on the same income, but since Saudi Arabia's personal tax footprint is light, the practical benefit of the credit for most individual homeowners is limited.
Since Saudi Arabia does not impose an annual residential property tax in the traditional sense (the 5% RETT is a one-time transaction cost, not a recurring annual bill), there is typically nothing equivalent to a foreign property tax to deduct on your US federal return for the ongoing ownership period.
Do I need FATCA reporting when buying in Saudi Arabia?
Buying the property itself does not trigger FATCA reporting for a US citizen, but almost every practical step around the purchase in Saudi Arabia does: opening a Saudi bank account, moving funds through Saudi financial institutions, and taking a mortgage all bring you into FATCA territory.
FATCA reporting on Form 8938 is triggered for US citizens when the total value of specified foreign financial assets exceeds $200,000 at year-end (or $300,000 at any point during the year) for those living abroad, though foreign real estate held directly and not through an entity generally does not count as a "specified foreign financial asset" for FATCA purposes on its own.
FATCA (Form 8938) and FBAR (FinCEN 114) are different obligations: FBAR applies to foreign financial accounts exceeding $10,000 at any point in the year, so a Saudi bank account used to pay for the property and cover costs almost certainly triggers FBAR filing, which is a lower threshold than most buyers expect.
Yes, consulting a US CPA before buying property in Saudi Arabia is strongly recommended, and the specific questions to ask are: whether your Saudi bank account will trigger FBAR, how rental income from the property will be taxed in the US, and whether holding through a Saudi entity creates additional IRS filing obligations.
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.
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 |
|---|---|---|
| Saudi Real Estate General Authority (REGA) - law entry into force announcement | It's the regulator announcing the rule change in its own words, directly. | We used it to pin down the start date (January 22, 2026) and the official portal process. We also used it to capture the high-level restrictions REGA highlights, especially for the holy cities. |
| REGA - Overview of Updated Law of Real Estate Ownership by Non-Saudis (PDF) | It's REGA's own official explainer of the foreign ownership framework, not a third-party summary. | We used it to explain what the law covers in plain language, including the "in-rem rights" framing. We also used it to stay conservative about details not yet published in the zoning document. |
| REGA - Q&A about the Updated Law (PDF) | It's an official, publicly released FAQ document designed to answer buyer questions. | We used it to confirm the law's scope and intent for individual buyers. We also used it to translate legal concepts into buyer-friendly language throughout the article. |
| Zakat, Tax and Customs Authority (ZATCA) - Real Estate Transaction Tax page | ZATCA is Saudi Arabia's tax authority and this page sets out the RETT rate and legal basis directly. | We used it to state the 5% RETT rate and avoid relying on secondary summaries for the core tax figure. We also used it to explain that RETT is the buyer's main transaction cost. |
| Saudi Central Bank (SAMA) - Official Repo Rate page | It's the central bank's own publication of its policy rate, updated in real time. | We used it to anchor the interest rate environment in early 2026 (4.25% as of December 2025). We also used it to build a realistic mortgage rate estimate range on top of the policy rate. |
| Saudi National Bank (SNB) - Home Finance Requirements | It's one of Saudi Arabia's largest banks publishing its actual underwriting requirements publicly. | We used it to cite a concrete down payment range (10% to 30%) that buyers actually encounter at a major lender. We also used it to shape realistic expectations for foreign applicants. |
| US Treasury - US-Saudi FATCA Intergovernmental Agreement | It's the US government source for the FATCA agreement text itself, not a summary or interpretation. | We used it to explain why Saudi banks ask US citizens for extra forms at onboarding. We also used it to connect the property-buying process to banking reporting obligations that many buyers overlook. |
| IRS - United States Income Tax Treaties A to Z | It's the IRS's own list of which countries have income tax treaties with the US, the definitive check. | We used it to verify whether a US-Saudi income tax treaty exists and avoid outdated claims from secondary sources. We also used it to frame double-tax planning realistically for 2026. |
| Saudi Ministry of Commerce - Commission cap warning | It's a government ministry statement on consumer protection in brokerage commissions. | We used it to support the 2.5% commission cap as a buyer protection guardrail. We also used it as a clear government reference for what buyers should not pay above. |
| Saudi Premium Residency Center (official government portal) | It's the official Saudi government portal for the Premium Residency program. | We used it to explain that property ownership is not automatically a visa or residency right. We also used it to keep residency discussions grounded in official government programs rather than agent claims. |
| US State Department State Magazine - Riyadh post profile | It's a US government publication referencing the American community size in Saudi Arabia. | We used it to anchor the estimate of around 80,000 Americans supported by the US Mission in Saudi Arabia. We also used it to avoid relying on informal expat community counts for a key context figure. |
| PwC - Update on Saudi RETT implementing regulations | It's a major international tax firm summarizing how RETT operates in practice for transactions. | We used it to triangulate the RETT implementation process and sanity-check what buyers experience at closing beyond the headline rate. We also used it to confirm the absence of a buyer-seller tax split convention in Saudi deals. |
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