Starting January 2026, the Saudi government significantly broadened foreigners’ access to property ownership, contrary to the previous law (the Golden Visa), which allowed only a limited category of foreign residents to own property.

Are foreigners buying property in Saudi Arabia?

To answer that question, we must examine the laws enacted by the Saudi government.

Foreign residents and investors are now eligible to buy property in Saudi Arabia, thanks to the newly enacted law. Below are the key variables to buying property in Saudi Arabia, subject to conditions set by the General Real Estate Authority (REGA): 

• Property location: ownership is designated to specific cities, such as Riyadh and Jeddah, with more restrictive rules for buying property in Makkah and Madinah

• • Residency status: foreign residents may also own one residential property outside designated zones for personal use
  • Entity type: foreign companies may acquire real estate necessary for business operations or employee housing, subject to applicable licensing requirements

• Freehold vs. Usufruct Rights: The new law allows both freehold ownership and usufruct rights. Usufruct differs from freehold (which completely transfers ownership) because it allows benefiting from the property for a certain period without transferring ownership. 

• Regulatory Approvals: Certain categories of foreign residents require approval or registration from the relevant authorities, such as the Ministry of Interior or REGA

What you should do next:

1. Verify your residency status: Ensure your Iqama has at least six months of validity.
2. Consult the Ministry of Justice: Review the latest circulars on foreign ownership zones.
3. Use Wasalt: Browse verified listings to gauge current market prices in your target city.

Real Estate and Residency: The Foreign Property-Owner Pathway

Foreigners can buy property for the long term if their investment is at least SAR 4,000,000 (approximately USD 1,070,000) through the Golden Visa.

The property must be residential, completed and ready to occupy, free from mortgages or liens, and independently valued by an accredited professional registered with TAQEEM, the Saudi Authority for Accredited Valuers

Residency under this pathway remains valid as long as the applicant continues to own the qualifying property. Premium residency holders can leave and re-enter Saudi Arabia without needing a separate exit or re-entry visa, which is a significant upgrade from the traditional Iqama sponsorship system.

Why Investors Are Looking at Saudi Arabia

Saudi Arabia has been attracting more investors through the Vision 2030 initiative, which is preparing the country for strong non-oil GDP growth, rapid urbanization, and large-scale infrastructure, with Riyadh at the center of investment opportunities. 

Giga-Projects and Development Scale

Saudi Arabia is attracting investments with its large-scale projects, such as: 

• NEOM
• Qiddiya
• The Red Sea Project
• The Diriyah Gate development

Understanding the Real Estate Transaction Tax (RETT)

Saudi Arabia introduced the Real Estate Transaction Tax (RETT) at a rate of 5% in October 2020, replacing the previous 15% VAT on real estate transactions. This flat 5% rate applies to the total value of real estate transactions regardless of the property’s ownership, type, use, or condition, covering residential, commercial, and industrial properties. 

RETT is calculated based on the total value of the agreed transaction at the date of disposal, which should not be less than fair market value, and is payable to ZATCA on the date of the transaction—i.e., the date of its notarization.

One important nuance for foreigners buying property in Saudi Arabia: the foreign ownership framework adds a 5% RETT plus an additional 5% foreign ownership-related fee, which can round up to 10% of the purchase price. Taxes on the property are levied under RATT rather than VAT, which is now applied to services related to the deal, such as brokerage fees, legal work, and valuation services.

Conclusion

Foreigners buying property in Saudi Arabia are subject to regulations enforced by the Saudi Arabian government, and these regulations have been optimized to increase the chances for foreigners buying property in Saudi Arabia and making investments in Saudi Arabia much easier than in 2020.

Frequently Asked Questions

Are foreigners buying property in Saudi Arabia?

Yes. Foreign residents with a valid Iqama can own one residential property for personal use, subject to Ministry of Interior approval. Non-Muslims cannot own property in Makkah or Madinah.

What is the RETT for foreigners buying property in Saudi Arabia?

A flat 5% tax on the total property transaction value, paid through the ZATCA portal before the deed is notarized. Additional foreign ownership fees may bring total government charges to around 10%.

Can I buy property in Saudi Arabia without living there?

Yes. The 2026 law allows non-residents to buy within designated zones. However, purchasing below the SAR 4 million threshold will not qualify you for residency.

Is it better to buy or rent in Riyadh as an expat?

It depends on your length of stay and financial situation. Buying suits long-term residents; renting suits those staying short-term. Factor in legal fees and ownership surcharges before deciding, and seek independent financial advice.

What happens to my property if I permanently leave Saudi Arabia?

You keep ownership, but managing property remotely is complex. Registering a Power of Attorney (PoA) with the Ministry of Justice allows a trusted representative to manage or sell it on your behalf.

Where are foreigners buying property in Saudi Arabia?

Designated zones in major cities like Riyadh and Jeddah, and development projects such as NEOM, Qiddiya, and the Red Sea Project. REGA publishes the official list of approved ownership zones.

Understanding the Saudi Real Estate Market

The Saudi real estate sector is undergoing significant changes driven by economic diversification and urban development. With Vision 2030 pushing for more foreign investment and urbanization, the market is not just ripe but brimming with opportunities for buyers, promising a future of growth and prosperity, which makes it the perfect opportunity for investment if you are considering buying a property in Saudi Arabia.

Key Features of the Saudi Real Estate Market:

• Diverse Property Types: From modern apartments to luxurious villas.
• Growing Investment: Significant interest from international investors.
• Government Initiatives: Policies to encourage property ownership and investment.

If you are considering buying your first property in Saudi Arabia, you can check out properties for sale in Saudi Arabia for more insights into available properties.

Buying Property in Saudi Arabia: A Step-by-Step Guide

Research the Market

Before making property purchases, it’s crucial to research the Saudi real estate market. Understanding the trends, property types, and areas of interest will help you make informed decisions.

• Market Trends: Analyze current property trends in Saudi Arabia.
• Property Types: From apartments to villas, understand what suits your needs.
• Locations: Explore the best locations based on your lifestyle and investment goals.

Determine Your Budget

Budgeting is essential when purchasing property. This includes not only the cost of the property but also additional expenses such as maintenance, taxes, and insurance. 

• Property Costs: Prices can vary widely, from affordable homes to luxury villas.
• Additional Costs: Include taxes, maintenance, and legal fees.

In addition, if you are looking to move to Saudi Arabia for work or to start a family, considering the cost of living there would also help you manage your finances.

Explore Mortgage Options

If you’re considering financing your property purchase, understanding mortgage options in Saudi Arabia is crucial. The mortgage market has been evolving, offering various products for buyers.

• Mortgage Providers: Major banks and financial institutions.
• Loan Terms: Interest rates, repayment periods, and eligibility.
• Requirements: Documentation and criteria for securing a mortgage.

Legal and Regulatory Considerations

If you are considering buying property in Saudi Arabia, then navigating the legalities of property ownership in Saudi Arabia is vital. Ensure you understand the regulations and legal requirements before making a purchase.

• Ownership Laws: Foreign ownership laws and regulations.
• Documentation: Required documents for purchasing property.
• Legal Assistance: A local real estate lawyer can help you navigate the process.

Top Locations for Property Investment

Riyadh

Riyadh, the capital city, is a prime location for property investment. It offers a range of options, from modern apartments to expansive villas.

• Expat Real Estate: Riyadh has a growing market for expat real estate, providing various choices for international buyers.
• Villas for Sale: Luxurious villas are available for those seeking a high-end lifestyle.
• Central Riyadh: Apartments for Sale in Central Riyadh offer convenience and easy accessibility to the rest of the city. 

Jeddah

Jeddah’s coastal charm presents a unique opportunity for those looking for properties near the Red Sea.

• Coastal Properties: Enjoy stunning views and a pleasant climate.
• Investment Potential: Jeddah’s real estate market is expanding with new developments.

Dhahran

If you are considering buying property in Saudi Arabia, then Dhahran might be the perfect destination for you. The city is known for its business hub, which attracts investors and professionals seeking high-quality living spaces.

• Business Proximity: Ideal for professionals working in the area.
• Luxury Homes: Availability of premium properties.

Finding the Right Property

Real Estate Companies

If you are considering buying property in Saudi Arabia, engaging with reputable real estate companies can make the property search process smoother. Reputable companies like Wasalt can help you find your dream home with just a few clicks. 

Property Listings

Explore various property listings to find the perfect home. Whether you’re looking for cheap houses for sale in Saudi Arabia or luxury villas, a thorough search will help you find what you need.

• Affordable Options: Look for cheap houses for sale in Saudi Arabia if you’re on a budget.
• Luxury Options: For high-end properties, focus on premium listings and real estate agencies specializing in luxury homes.

Conclusion

Buying property in Saudi Arabia offers many opportunities, from affordable homes to luxurious villas. Understanding the market, budgeting appropriately, and navigating legal considerations are crucial steps in making a successful property investment. With Vision 2030 driving development and foreign investment, now is an exciting time to explore Saudi Arabia’s real estate landscape.

Frequently Asked Questions

What are the key factors when buying property in Saudi Arabia?

Key factors include understanding market trends, setting a realistic budget, exploring mortgage options, and ensuring compliance with legal requirements.

Can expatriates buy property in Saudi Arabia?

Yes, expatriates can buy property in some regions of Saudi Arabia, but regulations and restrictions can vary depending on the location and type of property.

What types of properties are available for purchase in Saudi Arabia?

Saudi Arabia offers a range of properties, including apartments, villas, and commercial spaces. You can find both affordable homes and luxury properties.

How can I find affordable houses for sale in Saudi Arabia?

Searching through real estate listings and working with local agents can help you find affordable houses. Look for properties listed as cheap houses for sale in Saudi Arabia to find budget-friendly options.