Investment property: Saudi Arabia

Updated 6 October 2026

Since 21 January 2026 Saudi Arabia's law on real estate ownership by non-Saudis has been in force.

It allows foreign individuals and companies, whether living in the country or abroad, to buy property in specially designated zones. Before that, foreigners owned homes only in narrow cases. The riyal is pegged to the US dollar at 3.75 riyals per dollar.

Where foreigners can buy

• Riyadh: zones of major projects, including the King Abdullah Financial District, Diriyah Gate, King Salman Park and new residential districts around transit hubs.
• Jeddah: designated parts of the city.
• Makkah and Madinah: with special restrictions linked to their status as holy cities.
• AlUla: selected projects.

The list of zones is approved by the government, and before a deal it is checked whether the property lies in a permitted zone.

Taxes and costs

• Real estate transaction tax: 5% of the price on any transfer of ownership, for Saudi and foreign buyers alike. On a 3 million riyal flat, about $800,000, that is 150,000 riyals, about $40,000.
• Registration of title through the state electronic property registration system, after which an electronic title deed is issued.
• 15% VAT generally does not apply to home sales subject to the 5% tax.

Property and residence

Buying a home worth at least 4 million riyals, about $1.07 million, allows applying for premium residency in the property owner category. This status lets you live in the country without an employer sponsor, open an account as a resident and bring your family.

Letting

Saudi Arabia has no personal income tax, so a private owner's rental income is not subject to income tax. Residential leases are registered on the state rental platform, and an unregistered lease does not protect the owner in disputes.

Buyer's documents

• passport and, for those living in the country, a Saudi residence permit;
• proof of the origin of funds for the bank;
• a legalised power of attorney if a representative handles the deal;
• for a company, constitutional documents and Saudi registration.

How the purchase works

1. Checking the zone and the foreigner's right to buy the specific property.
2. Checking the developer, permits and construction schedule.
3. Contract and payment through a bank; for new builds, by construction stage and only into the project account.
4. Paying the 5% tax and registering title.
5. The premium residency application, if the property qualifies.

Risks

• A property outside an approved zone: the deal will not be registered.
• Makkah and Madinah restrictions that must be checked in advance, before any deposit.
• Buying off-plan without checking the developer.
• The new rules are still evolving, so details are confirmed at the deal date.
• Payment outside a bank: problems at registration and on later resale.

What we do

We check whether a foreigner may buy the property, shortlist homes in approved zones, check the developer, support the contract, tax payment and registration with locally licensed partners, and prepare the premium residency application.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account

FAQ