What the Law of Real Estate Ownership by Non-Saudis changes: zones, Makkah and Madinah, resident buyers, registration, fees and the link to Premium Residency.
For a long time foreigners could not simply buy a flat in Saudi Arabia. The Law of Real Estate Ownership by Non-Saudis changes that. It was issued by Royal Decree M/14 and published in July 2025, and it came into force in January 2026 (21 January according to law-firm summaries). Its implementing regulations were approved by the Council of Ministers on 23 June 2026. The law replaces the framework from 2000. This guide explains what is now permitted, what is still restricted and what you must check yourself. Checked in October 2026, and the practice is still settling.
Who counts as a non-Saudi buyer
The law uses a broad definition. It covers foreign individuals whether they live in the Kingdom or abroad, foreign companies, foreign non-profit entities, and Saudi-incorporated unlisted companies with foreign owners. Buyers may acquire ownership or other property rights for residential, commercial or operational use, but only in the zones the state has approved.
Zones: the core of the system
Foreigners can acquire property only inside geographic zones approved by the Council of Ministers on the recommendation of the Real Estate General Authority (REGA). REGA keeps the map of eligible areas. Enterprise reported in August 2026 that it lists 57 zones in Jeddah, 9 in Riyadh, 17 in AlUla, 12 in Makkah and 10 in Madinah. We did not verify district boundaries, and the map can be extended. The rule is simple: check the exact building or plot on the official map before paying any deposit.
Unlisted Saudi companies with foreign shareholders can, with approval from the Ministry of Investment, own outside the zones, except in Makkah and Madinah.
Makkah and Madinah
These two cities have special rules, and the sources we read disagree on details. Several summaries say foreign individuals may own there only if they are Muslim, and only in designated zones. Legal500 says the holy cities are excluded for foreign individuals and open only to Saudi-incorporated companies with foreign shareholders under conditions. Do not plan a purchase in either city without written confirmation from a Saudi lawyer.
Residents: one home outside the zones
According to law-firm summaries, a non-Saudi individual who lives in the Kingdom may own one residential property outside the zones, again not in Makkah or Madinah. We could not read the conditions in the regulation itself, such as length of residence or purpose, so ask your lawyer for the current text.
Registration and how the purchase runs
Applications go through a REGA electronic platform that works with the central bank's payment system. According to Legal500, an individual buyer must obtain an electronic ID from the Ministry of Interior, open a bank account in the Kingdom in their own name and hold a Saudi mobile number. A foreign company registers with the Ministry of Investment and discloses its direct and indirect owners. The route for non-residents has been changing, so confirm the current steps.
- Choose a property inside an eligible zone and get that confirmed in writing.
- Check the title and, for off-plan units, the developer's licence and escrow.
- Pay taxes and fees electronically, since property payments are meant to run through approved channels.
- Register the transfer on the platform and keep the digital title.
Fees, taxes and penalties
The real estate transaction tax is 5% of the price, in force since April 2025, paid through the tax authority's platform before the transfer (see the ZATCA site). Who bears it is set in the contract. Non-Saudi buyers also face a disposal fee, currently 2% in Riyadh, Jeddah, Makkah and Madinah with a statutory ceiling of 5%. Some firms call the rates not yet final. For a full cost picture read Saudi Arabia property prices and buying costs.
Penalties are serious. Legal500 reports fines of up to 5% of the value for false or misleading information, and 0.1% to 3% for other breaches. Gulf News and Khaleej Times report fines of up to SAR 10 million. Give accurate information in every document.
Link to Premium Residency
Owning a flat does not give you a residence permit. The Premium Residency programme has a separate Real Estate Owner category. Secondary sources say it needs residential property of at least SAR 4 million with no mortgage. We explain it in Premium Residency and property for expats.
For Polish- and Russian-speaking buyers
Prepare a valid passport, proof of address, proof of the source of funds and, for companies, ownership documents. Ask the Saudi lawyer which documents need an apostille or a certified translation. Banks apply their own compliance policies, so ask the bank early what it requires from a buyer living in the EU. Move money only from an account in your own name through regular bank channels. We make no statement on the eligibility of any nationality; it is a matter for the bank and the lawyer. For the general steps read the foreigner purchase guide. Keep copies of every document, receipt and payment confirmation, and ask the lawyer to explain each document in a language you understand before you sign it, since the official forms are in Arabic.
FAQ
Can a foreigner buy property in Saudi Arabia in 2026? Yes, inside the zones approved by the state and through the official platform. Outside the zones the answer is generally no, with exceptions for resident individuals and for Saudi companies with foreign owners.
Do I need to live in Saudi Arabia to buy? No, the law covers non-residents too. They need an electronic ID, a Saudi bank account and a Saudi mobile number, according to Legal500.
Can a non-Muslim buy in Makkah or Madinah? Sources disagree on individuals. Treat it as restricted and get written advice from a Saudi lawyer.
What is the main fee? The transaction tax is 5%, and a disposal fee of 2% (cap 5%) applies to non-Saudis in the main cities. Confirm both before signing.
Does buying a flat give me residency? No. A separate Premium Residency category exists, with a high threshold.
How we help
We are a trilingual platform in English, Russian and Polish. We find properties and coordinate independent local lawyers and tax advisers. You can browse listings and use the calculators. This text is informational and is not legal, tax or investment advice. Rules are new and change, so verify the current rules with a Saudi lawyer and the official sources, for example REGA.