Buying Property in Saudi Arabia: What Foreigners Can Now Buy and What It Costs

October 2026 – Real Estate – Saudi Arabia

Since January 2026, Saudi Arabia has had a new law that allows foreigners to buy real estate in designated zones. With the implementing regulations and zones approved by the Council of Ministers on 23 June 2026, the regime is now workable in practice. Applications are made through the “Saudi Properties” platform of the Real Estate General Authority (REGA).

Buyers mainly want to know three things: who may buy, what may be acquired and what it costs. In short, purchases are only possible in designated zones. In many cases these allow ownership interests of up to 100 per cent and usufruct rights of up to 99 years. A 5 per cent real estate transfer tax applies on a change of ownership; on disposals by non-Saudis, a REGA fee is added, which has been set at 2 per cent for Riyadh, Jeddah, Makkah and Madinah.

This article summarises who may buy, what can be acquired, what it costs and what buyers should watch.

Who May Buy?

The law distinguishes several buyer groups. For all of them, acquisition is in principle limited to designated zones, with the exceptions below.

What Can Be Acquired?

Residential, commercial, agricultural and industrial property is covered. Which properties, what maximum share and what usufruct term are permitted is set zone by zone. Possible interests include:

• Full ownership and other real rights, such as usufruct and easements
• In many zones, ownership interests of up to 100 per cent
• Usufruct rights of up to 99 years in many cases
• In AlUla, most zones permit ownership, while some permit rights other than freehold ownership

Note: A plot inside a zone is not automatically open to every buyer. Buyer category, project status and zone-specific conditions must be checked case by case.

Which Areas Are Open?

Foreign ownership is not possible across the whole country, only in designated zones. According to published overviews, these include:

• Riyadh: including KAFD, Diriyah Gate, King Salman Park, New Murabba, Qiddiya and SEDRA
• Jeddah: numerous designated areas, including Jeddah Central
• Makkah and Madinah: designated projects such as Jabal Omar, Masar and Rua Al Madinah
• AlUla and giga-projects such as NEOM, Red Sea and AMAALA
• Special economic zones: King Abdullah Economic City, Jazan and Ras Al-Khair

REGA publishes the binding map on the Saudi Properties platform. Boundaries may change, so check each plot there before buying.

Makkah and Madinah

Individuals may only buy there if they are Muslim, and only in designated zones. Separate rules apply to companies. Some law-firm overviews assume stricter restrictions. Eligibility should therefore be confirmed in writing before a purchase decision.

What Does It Cost?

Before the implementing regulations, a fee of up to 5 per cent on transactions involving non-Saudis was discussed, which together with the 5 per cent real estate transfer tax could have reached 10 per cent. The regulations have set the REGA fee at 2 per cent for the main cities.

Note: Other costs, such as broker fees, financing or ongoing charges, are not included in this overview. The rate of the REGA fee for other zones should be checked in the implementing regulations.

Registration and Procedure

All applications go through REGA’s electronic platform. An acquisition by non-Saudis is only effective once it is recorded in the Real Estate Registry. Depending on the buyer, the following requirements apply:

• Individuals: electronic ID from the Ministry of Interior, a Saudi bank account in their own name and a local phone number
• Foreign companies: registration with MISA with disclosure of direct and indirect owners, plus a local bank account
• Foreign non-profit organisations: registration with the NCNP with disclosure of controlling persons
• Payments through the electronic payment system

Registered foreign companies must report ownership changes of 5 per cent or more within 15 days.

Penalties for Violations

Violations of the law or the regulations attract graduated sanctions:

• A warning first, then fines of up to 5 per cent of the value of the right concerned, capped at SAR 10 million
• For intermediate breaches, such as failing to report a change of ownership: fines of 0.1 to 3 per cent of the property value
• For intentionally false information: a fine, forced sale and referral to the public prosecution; the violator receives the lower of net sale proceeds and the original purchase price

According to the sources available, the rules allow a period of 10 to 180 days to remedy a breach before penalties apply. Appeals may be brought before the Administrative Court within 60 days.

What Buyers Should Watch

• Check the zone. Use the REGA map to establish whether the plot lies in a designated zone and which rights are permitted there.
• Clarify the buyer category. Different requirements apply depending on whether you buy as an individual, a company or a fund.
• Check rights and term. Distinguish full ownership from usufruct rights and watch the maximum shares and terms of the relevant zone.
• Budget for costs. Allow for the 5 per cent transfer tax and, on a later sale, the REGA fee.
• Prepare registration. Allow time for the electronic ID, bank account or MISA registration.
• Review existing structures. If you have invested through nominee arrangements or funds so far, review and where necessary adjust these structures.
• Arrange a legal review. Have eligibility, costs and contract terms reviewed legally before you pay.

Frequently Asked Questions

Can a non-Muslim buy in Makkah or Madinah?

Based on the information available, individuals may only buy there if they are Muslim. Separate rules apply to companies. Obtain written confirmation of eligibility before making any payment.

Do I need to be resident in Saudi Arabia?

No. Non-residents can also buy in the designated zones. Foreigners who are legally resident may in addition buy one residential property for personal use outside the zones.

Does buying property give me residency?

Not automatically. One source states that the Premium Residency programme for property owners requires a mortgage-free residential property worth at least SAR 4 million in a designated area. The conditions should be checked with the competent body.

When is my ownership legally effective?

Only once it is recorded in the Real Estate Registry. Unregistered transactions involving non-Saudis are not legally effective.

Does the 2 per cent fee also apply outside the four cities?

The sources available state 2 per cent for Riyadh, Jeddah, Makkah and Madinah. For other zones the rate should be checked in the regulations; the statutory ceiling is 5 per cent.

How TME Legal Can Help

TME Legal advises investors, buyers and companies on buying real estate in Saudi Arabia. Our services in this area include:

• Assessing zone eligibility and the permitted rights for the property concerned
• Structuring the acquisition through an individual, company or fund
• Supporting registration and applications through the platform
• Reviewing purchase agreements and the allocation of costs
• Advising on reporting duties and compliance after acquisition
• Reviewing existing holding structures

If you would like to have a property acquisition in Saudi Arabia reviewed, we would be glad to help.

This article is for general information only and does not constitute legal advice. It is based on public reports as at October 2026; REGA’s zones, fees and procedures continue to evolve. Please contact TME Legal for advice tailored to your individual situation.