Saudi Arabia Introduces New Property Rules for Foreign Buyers

Jul 4, 2026

73 min

Jul 4, 2026 10:30

Saudi Arabia’s new property rules: What foreign buyers need to know

## Key Requirements for Foreign Buyers

Saudi Arabia has implemented a new regulatory framework for property ownership by non-Saudis, aiming to enhance investment appeal and market efficiency under Vision 2030. Non-resident foreign individuals must secure a Ministry of Interior-approved digital identity before purchasing property. Additionally, they need to open a local bank account and register a Saudi mobile number linked to their digital identity.

## Regulations for Foreign Companies and Non-Profits

Foreign companies must register with the Ministry of Investment, disclose beneficial owners, and appoint a legal representative with a Saudi identity. They are also required to maintain a company bank account in Saudi Arabia. Non-profit organizations must register with the National Centre for Non-Profit Sector Development and report significant changes in control or structure.

## Family Ownership and Special Zones

The rules also address foreign family ownership, treating a foreign spouse and non-Saudi children as dependents for residential property acquisition. Specific provisions apply to Saudi companies with foreign shareholders, allowing property acquisition outside designated zones with Ministry approval, except in Mecca and Medina, where restrictions apply.

## Transaction Fees and Enforcement

A 2% fee is imposed on real estate transactions by non-Saudis in major cities like Riyadh and Jeddah. Certain transactions, such as inheritance or government expropriations, are exempt. All financial transactions must be processed through approved electronic systems. Violations of the regulations can result in fines up to SR10 million, with a grace period for rectification before penalties are enforced.

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