Summary
“Saudi Arabia has rolled out executive regulations for its Non-Saudi Real Estate Ownership Law. Foreign buyers now need a digital identity, a local bank account, and must pay a new transaction fee in major cities. Here’s what’s changed and who it affects.”
Saudi Arabia has introduced detailed executive regulations for foreign property ownership, adding new requirements around identity verification, banking, and fees. The rules build on the Non-Saudi Real Estate Ownership Law, which has been in force since January 22, 2026, and were approved by the Saudi Cabinet in June 2026 along with the geographical zones where non-Saudis can own property. For anyone living in or investing in the Kingdom, these regulations set out exactly who can buy, where, and under what conditions.
Background: Why Saudi Arabia Changed Its Property Ownership Law
Until recently, foreign ownership of property in Saudi Arabia was tightly restricted. The old law, dating back to 2000, mainly allowed foreign individuals and companies to buy property for business use an office, a warehouse, or housing for employees. Personal ownership by expats or overseas investors was largely off the table.
That changed with Royal Decree M/14, approved in July 2025, which introduced the new Law of Real Estate Ownership by Non-Saudis. The law was published in the official gazette and took effect on January 22, 2026, replacing the 2000 framework entirely. It opened the door for non-Saudi individuals and entities, both residents and those living abroad, to own real estate or acquire property rights within specific zones.
The reform sits squarely within Vision 2030, the Kingdom’s long-term plan to diversify its economy away from oil. Attracting foreign capital into real estate, alongside sectors like tourism and technology, is one of the plan’s core goals. The new rules aim to strike a balance: open the market to foreign money while keeping ownership regulated, traceable, and geographically controlled.
Who Needs a Digital Identity and a Local Bank Account
Before buying property, non-Saudi individuals must complete a few identity and banking steps. Non-resident foreign buyers need to obtain a Saudi-issued digital identity, open a local bank account, and register a Saudi mobile number linked to that identity. These steps exist to make sure every transaction is tied to a verified, traceable record.
Foreign residents already living in the Kingdom have a more direct route. They can apply through the Saudi Properties portal using their Iqama (residency) number, with eligibility checked automatically through government systems. Applicants living outside Saudi Arabia, including those who have never held residency, must first get a Saudi digital identity through a Saudi embassy or consulate abroad. Once that identity is activated through the Nafath platform, they can register on the portal, select an eligible property, and submit their application online.
| Buyer Type | Digital ID Required | Local Bank Account | Extra Step |
|---|---|---|---|
| Foreign resident (Iqama holder) | Yes, via Nafath | Yes | Apply directly on Saudi Properties portal |
| Non-resident individual | Yes, via Saudi mission abroad | Yes | Get digital identity before applying |
| Foreign company (no Saudi presence) | Yes | Yes, company account | Register with Ministry of Investment and Invest Saudi |
| Non-profit organization | Yes | Yes | Register with National Center for Non-Profit Sector Development |
New Rules for Foreign Companies
Foreign companies also face a more structured process. Any foreign company that wants to buy property in Saudi Arabia must register with the Ministry of Investment, whether it already operates in the Kingdom or wants to acquire property without setting up local operations.
As part of registration, companies must submit a commercial registration certificate issued in their home country. This document, along with the company’s articles of incorporation, must be translated by an accredited translator and authenticated through Saudi diplomatic channels. Companies without a Saudi-recognized identification document must obtain a digital identity through a Saudi embassy or consulate first.
Every applicant company must disclose its direct and indirect owners at registration and appoint a legal representative who holds a Saudi-issued identity. A local company bank account is mandatory before the Ministry of Investment issues an official registration number. After registration, companies must notify the ministry within 15 days of any change in ownership of 5% or more, whether that happens in one transaction or several. They must also report any internal governance arrangement that limits their independence or gives an outside party significant influence over decisions.
Unlisted Saudi companies with foreign shareholders can also own property, or acquire real estate rights, outside Makkah and Madinah for business use or employee housing, subject to the same regulatory checks. Foreign non-profit organizations follow a similar path, registering instead with the National Center for Non-Profit Sector Development and disclosing their controlling parties before acquiring any property.
Where Foreigners Can and Cannot Buy Property
Ownership isn’t open across the whole country. REGA and the Council of Ministers operate a zoning system, and non-Saudis can only buy within approved areas. These zones include parts of Riyadh, Jeddah, Makkah, Madinah, and AlUla, along with several giga-projects and special economic zones such as NEOM, Qiddiya, Diriyah Gate, New Murabba, King Abdullah Financial District, King Salman Park, the Red Sea, Amaala, and King Abdullah Economic City.
Outside these designated zones, the rules are stricter. A foreign resident is allowed to buy exactly one residential property for personal use, outside the approved zones, anywhere except Makkah and Madinah. A foreign spouse and non-Saudi children are treated as dependents under this rule, meaning a family generally cannot claim more than one such property between them.
Makkah and Madinah remain the most protected cities. Ownership there is restricted mainly to Muslim residents, and only within specific approved zones. Riyadh and Jeddah are not fully open either general ownership across these two cities isn’t allowed; buyers must purchase within the areas defined in REGA’s official geographic zones document.
| Area | Non-Resident Foreigner | Foreign Resident |
|---|---|---|
| Designated investment or giga-project zones | Allowed | Allowed |
| Riyadh / Jeddah (outside designated zones) | Not allowed | One residential unit only |
| Makkah / Madinah | Restricted | Restricted, mainly Muslim residents in approved zones |
New Property Transaction Fees for Foreign Buyers
Buying property as a non-Saudi now comes with an added cost. The new regulations introduce a 2% fee on the value of real estate rights transferred to non-Saudis in Riyadh, Makkah, Madinah, and Jeddah. This applies to both residential and commercial transactions and comes on top of the standard 5% Real Estate Transaction Tax (RETT) that applies to property deals generally.
In practice, that means foreign buyers in these four cities should budget for total transaction costs of around 7% or more, once the standard tax and the new fee are combined. Some exemptions apply, including property divided through inheritance, transfers ordered by a final court judgment, and transfers resulting from expropriation for public benefit.
The law also allows REGA to charge a separate real estate transfer fee, of up to 5% of a property’s value, on certain disposals by non-Saudis. Buyers should treat this as a distinct charge from the new 2% city-specific fee rather than assume the two overlap, since the executive regulations describe them separately.
How to Register and Complete a Purchase
The process now runs through a single digital system. Here’s the general sequence:
- Get a digital identity through Nafath for residents, or a Saudi diplomatic mission for those applying from abroad.
- Register on the Saudi Properties portal, linked directly to the national Real Estate Registry.
- Confirm the property sits within an approved zone before submitting an application.
- Complete payment through an electronic method approved under SAMA’s payments framework cash or informal arrangements are not accepted.
- Complete electronic notarization of the transaction.
- Receive an electronic title deed, issued once the property is recorded in the Real Estate Registry.
Ownership only becomes legally valid once registration is complete. An unregistered deal, however informal, carries no legal protection under the new framework.
Penalties for Non-Compliance
The regulations give REGA-appointed inspectors authority to investigate and document violations. If someone is found in breach, they’re typically given between 10 and 180 days to correct the issue, depending on how serious it is.
The heavier penalties apply to buyers who submit false or misleading information to secure ownership rights. These cases can carry fines of up to 5% of the property’s value, capped at SAR 10 million, and in serious cases the property itself could be subject to forced auction. The message from REGA is clear: informal or undocumented deals are no longer an option.
What This Means for Expats and Investors
For readers thinking about buying property in Saudi Arabia, the practical checklist looks like this: confirm your eligibility based on residency status, get your digital identity sorted early, and budget for the added 2% fee if you’re buying in Riyadh, Jeddah, Makkah, or Madinah. Most importantly, check that the property you’re interested in actually sits inside an approved ownership zone before signing anything.
Zone maps and some technical details are still being finalized in places, so it’s worth double-checking the latest requirements directly on REGA’s official portal before committing to a purchase. This guide reflects the framework as it stands, but implementation details can be refined as the system matures.
FAQs
Can expats buy a house in Saudi Arabia in 2026?
Yes. Foreign residents can buy within approved zones, plus one residential property outside those zones (except in Makkah and Madinah), once they meet the digital identity and banking requirements.
Do non-residents need to visit Saudi Arabia to buy property?
Not necessarily. Non-residents can get a digital identity through a Saudi diplomatic mission abroad and apply through the Saudi Properties portal remotely.
What is the new property fee for foreign buyers?
A 2% fee applies to real estate rights transferred to non-Saudis in Riyadh, Makkah, Madinah, and Jeddah, in addition to the standard 5% Real Estate Transaction Tax.
Can foreigners buy property in Makkah or Madinah?
Ownership in these two cities is restricted, largely to Muslim residents, and only within specific approved zones.
How many residential properties can a foreign family own?
Generally one, outside the designated zones. A foreign spouse and non-Saudi children are counted as dependents under this limit.
This article is for general information only and does not constitute legal advice. Property rules can change; always confirm current requirements on REGA’s official portal before making a purchase.
