Saudi property buying rules: What expats and investors need to know

TL;DR: Saudi Arabia to allow foreigners to buy property from January 2026 in designated zones like Riyadh and Jeddah. REGA will define eligible areas and publish detailed rules within 180 days. Mecca and Medina remain restricted to long-term leases only (not ownership)

Valid Iqama or Premium Residency required to purchase. 5% real estate transaction tax applicable on purchases. Foreign companies and individuals can both buy. Property purchases to be completed via digital platforms like Absher and registered under REGA.


Who Can Buy

• Foreign individuals and companies will be allowed to buy property. You’ll need to meet specific conditions, but you won’t need to be a Saudi citizen.

• If you're a Premium Residency holder or a GCC national, you're already allowed to own property under certain conditions.

Where You Can Buy

• The law will allow purchases in places like Riyadh, Jeddah, and other areas that will be announced soon.

• You can’t buy property in Mecca or Medina, but long-term leases (up to 99 years) may be possible in those cities.

The Real Estate General Authority (REGA) will release the final list of areas and rules before January 2026. They will also open a public feedback process on a platform called Istitaa.


How to Buy Property as an Expat

Here’s a basic outline of how the process is expected to work:

• Check your eligibility — you’ll likely need a valid residency permit (Iqama) or a business license.

• Choose a property in an approved area.

• Apply for a permit through Saudi’s official digital platforms like Absher.

• Get clearance from REGA and possibly from the Ministry of Interior or Investment.

• Sign the deal and register the ownership.

• Pay a 5% property transaction tax.

• Keep in mind: rules for financing, taxes, and other approvals may vary depending on the zone and the type of property.

Why This Matters

Real estate now makes up a growing part of Saudi Arabia’s economy. The new law is meant to boost that even more by attracting outside buyers and encouraging development in major cities.
It also brings Saudi rules closer to what’s already allowed in countries like the UAE and Qatar, where expats have been able to buy property for years.


Things to Keep in Mind

• You can’t buy just anywhere. Specific zones will be named.

• Mecca and Medina remain off-limits for freehold ownership.

• Government approval is a must before completing a deal.

• The law starts in January 2026, but the details will come out earlier.

• Digital tools like Absher will be used to handle most of the paperwork.

FAQs
Q. Can foreigners buy property in Saudi Arabia now?
Not yet. The law takes effect in January 2026.

Q. Can I buy in Mecca or Medina?
No, but you may be able to lease long-term.

Q. Do I need to live in Saudi Arabia to buy?
Yes. You’ll likely need a valid Iqama or Premium Residency.

Q. Are companies allowed to buy property too?
Yes. Foreign companies can buy property in approved zones.

Q. Is a mortgage possible?
It might be, but most expats pay in cash. Saudi banks have strict lending rules.

Q. What taxes do I have to pay?
There’s a 5% real estate transaction tax on most purchases.