Since 2026 a foreigner can own property in Saudi Arabia, but only in designated zones. What the law allows, what it costs, how Premium Residency fits in and what to check.
For decades a foreigner could not simply buy a flat in Saudi Arabia. That changed in 2026. A new law on real estate ownership and investment by non-Saudis took effect at the start of the year, and its implementing regulations were approved by the Council of Ministers on 23 June 2026. The old case-by-case approval was replaced by a rule-based system with designated zones and a single state platform. The market is new, so some details are still settling, and this guide separates what is established from what you still have to verify. Data checked in October 2026.
Who can buy
The law covers non-Saudi individuals (residents or not), foreign companies, foreign non-profit entities, and Saudi companies with foreign shareholders. A foreigner may buy for residential or business use, but only inside the zones the state has approved. Outside those zones the general answer is still no, with a narrow exception for Saudi companies with foreign owners buying for business purposes with the investment ministry's approval.
Makkah and Madinah are special. Foreign individuals can buy there only if they are Muslim, and only in the zones set aside for it. Non-Muslim investors can reach those cities only through a Saudi company with foreign shareholders, subject to separate controls.
Where: the zone map
The Real Estate General Authority (REGA) published a map of permitted areas. According to Enterprise, which reported on it in August 2026, it covers 57 zones in Jeddah, 9 in Riyadh, 17 in AlUla, 12 in Makkah and 10 in Madinah. REGA calls the map a starting point and says it can grow after its own review, without giving a date.
For a buyer this means one practical rule: check the exact building or plot against the official map before you pay a deposit. A good district name in a brochure does not make the address eligible. We did not verify district boundaries for this article, and you should not rely on any secondary description of them, including ours.
How the purchase works
Applications go through REGA's digital platform, called Saudi Properties, which handles registration, payment and title issuance and works with the central bank's payment system. Residents with an iqama apply directly. According to Gulf News, non-residents begin at a Saudi embassy abroad, and foreign companies must first register with the Ministry of Investment. Treat the exact route as something to confirm with a Saudi lawyer, because the procedure has been changing since January.
In practice the steps look like this:
- Choose a property inside an approved zone and ask the seller or developer to confirm it in writing.
- Check the title in the real estate registry and, for an off-plan project, the developer's licence and escrow arrangements.
- Agree the price and who pays which fee. Taxes and fees are paid electronically before the transfer application is submitted.
- Register the transfer through the platform and receive the digital title.
What it costs
There are three layers, and the sum matters more than any single line.
- Real estate transaction tax (RETT): 5% of the transaction value, in force since April 2025. It is generally paid by the seller, but the contract can move it to the buyer. A payment certificate is required for the transfer to go through.
- Fee for non-Saudis: a disposal fee payable to REGA when a non-Saudi buys or sells a right in property. It is currently reported at 2% in Riyadh, Jeddah, Makkah and Madinah, with a statutory ceiling of 5%. One law firm describes the rates as still in draft, and the payer is agreed between the parties. Commentators, including CBRE, talk about a combined burden of up to 10% designed to discourage short-term speculation.
- Smaller items: registration of SAR 1,600 (roughly 430 dollars) for an ordinary transfer, with first-time registration free, and agent commission of up to 2.5%. These are subject to amendment.
So a foreigner should budget several percent of the price on top of it, and ask in writing who bears RETT and the non-Saudi fee. The amounts are converted at the riyal's peg of 3.75 to the US dollar.
Premium Residency and property
Owning property does not automatically give a residence permit. There is a separate Real Estate Owner route within the Premium Residency programme. According to Saudi sources such as amlak.net.sa and consultancies, it requires residential property worth at least SAR 4 million (about 1.07 million dollars), already built rather than raw land, free of any mortgage, valued by an accredited Taqeem appraiser. The residence lasts as long as the ownership and costs SAR 4,000. These details come from secondary sources; confirm the current conditions on the official Premium Residency portal before building a plan on them.
For most buyers from Europe the property is simply an investment, not a residence strategy. The threshold is high, and the no-mortgage rule means you pay in full.
Taxes after the purchase
Saudi Arabia has no general annual property tax on a flat, but there is a White Land Tax aimed at undeveloped urban land. Rent paid to a non-resident individual is reported to face a final withholding tax of 5% of gross rent. We could not confirm this from a primary source, so ask a tax adviser how it interacts with your home country's rules, especially if you are tax resident in the EU. A double tax treaty may apply.
Financing
Banks have announced mortgage products for foreigners, with rates quoted from about 4.1% to just under 5% for foreign residents. Whether a non-resident can borrow on the same terms is not clear, and the Premium Residency route forbids a mortgage altogether. Plan to buy with your own money, and treat any mortgage offer as something you have in writing.
Risks to weigh
- A new regime. Rules, fee rates and the zone map are still being refined. The first reports in January said no project had yet been approved for foreign buyers. The map and regulations came later, and we could not confirm how many non-resident purchases have actually closed.
- Eligibility of the exact address. This is the main way to lose money: buying outside a zone.
- Penalties. Reports quote fines of up to SAR 10 million and public auction for property bought on false information. Be accurate in every document.
- Illiquidity. The pool of foreign buyers is small, a fee applies when you sell, and Riyadh has a rent freeze until 2030 that limits income growth.
- Off-plan risk. Check the licence, escrow and the delivery record of the developer.
- Currency. The riyal is pegged to the dollar, which removes most exchange risk for a dollar investor and adds it for a euro or zloty earner.
A sensible order of work
1. Define the goal: income, a place to stay, or diversification. The answer decides between Riyadh, Jeddah or AlUla. 2. Pick the zone from the official map, not from the brochure. 3. Have a Saudi lawyer check the title, the zone status and the fee split. 4. Compare the total cost of entry and exit, not just the price. 5. Confirm the tax position at home before you sign.
If you want help screening a project against these points, our team can do a first review of the documents free of charge and reply within 24 hours. Laws and fee rates change, so confirm the current rules with a licensed Saudi lawyer before any payment.