Up to SAR10 million fine: Saudi Arabia announces rules for foreigners buying property

Saudi Arabia is opening its property market to foreign investors with new regulations set to take effect in January 2026, aiming to boost the real estate sector and attract foreign direct investment as part of broader economic reforms.

The 'Saudi Property' unified platform will be central to ensuring transparency, requiring both sellers and buyers to register before finalizing agreements. Non-Saudis will be permitted to own property in major cities like Riyadh and Jeddah, as well as across all governorates. However, ownership in the holy cities of Makkah and Madinah is restricted to Muslim individuals and Saudi companies with non-Saudi shareholders.

Under the new rules, a significant 10% real estate fee will be imposed on non-Saudi property ownership, comprising a 5% disposition tax and an additional fee not exceeding 5%. Additionally, a 2% transaction fee will apply to real estate rights acquired by non-Saudis in Riyadh, Jeddah, Makkah, and Madinah, though certain exemptions exist, including inheritance divisions, court judgments, and donations to government entities.

Foreigners seeking to own property must ensure it is registered in the Real Estate Registry, provide full disclosure of information, possess a Ministry of Interior-approved digital identity, and maintain a Saudi bank account. These measures are designed to create a transparent and dependable market environment for international buyers and sellers.