The rules say who may own, where, and what fees and penalties apply, including a 2% disposal fee in the main cities.
According to the law firm Greenberg Traurig, Saudi Arabia has published the implementing regulations of its foreign ownership of real estate law. Foreign individuals, foreign companies registered with the Ministry of Investment, foreign non-profit entities and unlisted Saudi companies with foreign ownership may own property under the rules.
The Real Estate General Authority (REGA) has launched a dedicated link with a map of the areas where foreign ownership is permitted; it covers property in Riyadh, Makkah, Madinah and Jeddah. In Makkah and Madinah, foreign-owned Saudi companies cannot own outside the designated zones. Foreign companies owning outside the zones need Ministry of Investment approval, and the property must serve business activities or staff accommodation.
A 2% disposal fee applies in the main cities of Riyadh, Makkah, Madinah and Jeddah, with exemptions for judicial orders, developer disposals within specified periods and transfers to wholly owned Kingdom entities. Penalties include up to 5% of the property value for false or misleading information, and 0.1% to 3% for other violations, subject to caps.
Check the zone map and the latest fee rules before you buy.