For decades, owning property in Saudi Arabia was largely off-limits to non-Saudis outside of narrow corporate or licensed exceptions. That changed on 21 January 2026, when the Kingdom’s Law of Real Estate Ownership by Non-Saudis officially came into force — one of the most significant real estate reforms under Vision 2030, opening the door for foreign individuals, companies, and funds to own property across the Kingdom for the first time in the modern era.
If you’re an expat living in Saudi Arabia, an overseas investor, or simply exploring what this means for you, here’s a clear breakdown of the new rules, who qualifies, and what to check before you buy.
What Changed, and When
The Law of Real Estate Ownership by Non-Saudis was approved and published in July 2025 and took effect on 21 January 2026. It replaces the Kingdom’s old case-by-case approval system with a structured, rules-based framework built around designated investment zones and a single digital platform, run by the Real Estate General Authority (REGA), that handles registration, payment, and title issuance in one place.
On 23 June 2026, the Council of Ministers approved the law’s Implementing Regulations along with the official geographic areas designated for non-Saudi ownership — giving the framework the operational detail investors and residents had been waiting for.
Who Is Eligible to Own Property
The law recognizes five categories of eligible non-Saudi buyers:
- Foreign individuals
- Foreign companies
- Saudi-incorporated companies with foreign shareholders
- Non-profit entities
- Diplomatic missions
A particularly relevant detail for the expat community: foreign individuals who are legal residents of Saudi Arabia are granted a special allowance to own one residential property outside the designated ownership zones — a meaningful shift for the many long-term expat residents who previously had no direct path to ownership.
Where Foreigners Can Buy
Ownership isn’t unrestricted everywhere. The framework is built around approved geographic zones defined by the Council of Ministers, based on recommendations from REGA. A few important distinctions:
- Most Saudi cities — residential ownership is open to eligible foreign buyers, particularly residents, subject to the designated zones and conditions.
- Makkah and Madinah — ownership remains restricted, and is permitted only for Muslim non-Saudi individuals and certain Saudi-incorporated companies with foreign shareholders, under strict conditions.
- Approved investment zones — foreign companies and non-resident buyers can generally own property fully in their name only within specific zones approved by the Council of Ministers.
REGA is expected to continue publishing detailed maps and zone-specific guidelines, so the exact boundaries of where non-residents can buy will keep being refined — this is an area worth confirming property-by-property rather than assuming blanket access.
What It Costs: Fees and Taxes
Foreign ownership comes with additional fiscal obligations layered on top of standard transaction costs. Current guidance points to a combined fee and tax structure of around 10 percent on foreign ownership transactions, in addition to the standard 5 percent Real Estate Transaction Tax (RETT) that applies to property sales generally. Exact rates vary by transaction type and are set under the Implementing Regulations, so the precise cost should always be confirmed for each specific purchase before signing.
The law also carries real consequences for non-compliance: buyers who submit false or misleading information can face fines of up to 5% of the property’s value (with a cap of SR10 million for serious violations), and properties acquired through false information are subject to public auction.
What This Means for the Market
Beyond individual buyers, the reform is expected to deepen liquidity across the Kingdom’s property market and attract long-term foreign capital into residential, commercial, industrial, tourism, and mixed-use developments — supporting the scale of projects tied to giga-developments like NEOM, Qiddiya, and the Red Sea initiative. For regional markets like the Eastern Province, where demand is already being driven by industrial, logistics, and energy-sector growth, opening the door to foreign residents and investors adds a further layer of demand on top of an already strong local market.
Before You Buy: A Practical Checklist
- Confirm whether the property falls within an approved ownership zone for your buyer category (resident individual, non-resident individual, or company).
- Verify your eligibility category and any residency requirements that apply to your situation.
- Get the full fee breakdown in writing — combined foreign-ownership fees plus standard RETT — before signing anything.
- Verify the title deed independently through the Najiz platform before making any payment.
- Work with a RERA-licensed real estate consultant who can confirm zone eligibility and structure the transaction correctly from the start.
How Tajseem Group Can Help
As a RERA-licensed real estate and engineering consultancy based in Dammam with a branch in Al Khobar, Tajseem Group is closely tracking how this new framework applies across the Eastern Province. Whether you’re an expat resident exploring your first home purchase or an overseas investor evaluating the Saudi market for the first time, our team can help confirm eligibility, verify zone and title details, and guide you through the registration process from agreement to handover.
Curious whether a specific property qualifies under the new foreign ownership rules? Get in touch with our team for guidance in Dammam and Al Khobar.
Frequently Asked Questions
Can any foreigner buy property in Saudi Arabia now?
Eligible foreign individuals, foreign companies, Saudi companies with foreign shareholders, non-profits, and diplomatic missions can now own property, but ownership is generally limited to approved geographic zones, with additional allowances for foreign residents.
Can expats living in Saudi Arabia buy a home?
Yes — foreign individuals who are legal residents are permitted to own one residential property outside the designated ownership zones, in addition to zone-based options available to all eligible buyers.
Can foreigners buy property in Makkah or Madinah?
Ownership in Makkah and Madinah remains restricted, and is currently permitted only for Muslim non-Saudi individuals and certain Saudi-incorporated companies with foreign shareholders, under strict conditions.
How much does it cost for a foreigner to buy property in Saudi Arabia?
In addition to the standard 5% Real Estate Transaction Tax, foreign ownership transactions carry combined fees reported at around 10%, though exact rates depend on the transaction type and should be confirmed before signing.
What happens if incorrect information is submitted during a foreign ownership purchase?
Buyers who submit false or misleading information can face significant fines, and properties bought through false information may be subject to public auction.
This article is provided for general informational purposes and does not constitute legal advice. The Law of Real Estate Ownership by Non-Saudis and its Implementing Regulations are still being operationalized by REGA and the Council of Ministers, and specific zones, fees, and conditions may be updated. For a transaction-specific assessment, consult a licensed real estate consultant or legal advisor.