Saudi Arabia 2026: what changed for foreign buyers

Saudi Arabia is the market where the rules changed most in 2026, and where agents face the most questions from buyers who have read headlines and not the regulation. This briefing sets out what happened, what is only reported and what is still open, as of 12 October 2026. It is for agencies and developers.

What happened, in order

• July 2025: the Law of Real Estate Ownership by Non-Saudis was published in the official gazette.
• 21 January 2026: the law came into force, replacing the 2000 regime, according to King & Spalding.
• 23 June 2026: the Council of Ministers approved the executive regulation and the designated zones, according to two law-firm summaries. One summary says the regulation was published in the official gazette on 3 July 2026. We could not confirm that date from a second source.
• Summer 2026: REGA is reported to have launched an online platform where eligible non-Saudis apply for ownership. One source calls it Saudi Properties.

Who can own what

• Foreign individuals, foreign companies, foreign non-profit entities and other legal persons designated by the Council of Ministers are covered. Saudi companies with foreign shareholders are treated differently.
• A resident individual may acquire one residential property outside the zones. Non-residents are limited to designated zones.
• Rights vary by zone and buyer: full ownership in some places, and other rights such as usufruct or easements in others.
• The law is reported to complement existing routes, such as premium residency and ownership rights for citizens of the Gulf Cooperation Council, and not to replace them. Residence is a separate question: do not present a purchase as a route to a residence permit unless a Saudi lawyer confirms it.

Zones

News analysis in June 2026 listed zones in Riyadh and Jeddah, including financial and cultural districts and large master developments, and a summary mentions giga-projects and economic zones. We do not repeat the lists here, because they are long and may change. Check the official map for each property.

Makkah and Madinah

Restrictions remain. Sources say they are religious in nature, and differ on who may own and how. One analysis describes caps on foreign shareholding for Saudi companies there and the exclusion of foreign non-profit and foreign companies. Do not promise anything.

Fees and penalties

• Real estate transaction tax of 5 percent applies to transactions generally.
• A disposal fee on non-Saudis is allowed up to 5 percent under the law and is currently described as 2 percent in Riyadh, Jeddah, Makkah and Madinah, in draft form. Combined charges can reach 10 percent.
• Penalties differ between summaries. King & Spalding says warnings or fines of up to 5 percent of the property value, capped at SAR 10 million, and a compulsory sale where information was misrepresented on purpose. Another summary gives fines for false information up to 5 percent and lower bands of 0.1 to 3 percent for other violations. Quote neither as final.

Compliance: REGA is watching brokers

REGA's guide says brokers must run due diligence, assess risk, appoint a compliance officer, keep records for at least ten years and comply with UN and national sanctions. Use it as your checklist. A news page mentions amendments to the money-laundering law in 2026, but it came from one vendor page, and we did not use it. Ask a Saudi lawyer whether anything changed for your licence.

Short-term rentals

Older press describes a ministry licence for private tourism hospitality units, with hosts then required to be Saudi nationals and to present a title deed or lease. We did not confirm whether the 2026 law changes that for foreign owners. Tell an investor that a rental plan needs a licence check, and do not sell a foreign purchase on rental income.

Questions buyers now ask, and honest answers

• Can a foreigner buy in Saudi Arabia now? Yes, under the 2026 law, in the capacity and the places it allows. Outside a zone, only a legal resident, and only one home.
• Can I buy in Riyadh or Jeddah? Inside designated zones. Check the map.
• Can I buy in Makkah or Madinah? Restricted. Ask Saudi counsel.
• How much will it cost on top? Transaction tax, a disposal fee and registration, together up to about 10 percent in the reports. Check the current figures.
• Do I get residency? Not as a rule from the purchase. Ask a lawyer.

What to do with this

• sell by zone, and keep the official map and the date you checked it
• put the allocation of tax and fee into every contract
• use REGA's guide as your onboarding and screening checklist
• avoid any statement about holy-city ownership, residence or rental income that Saudi counsel has not confirmed
• recheck the fee rates and the zone list before each new client

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.