Rules, Eligibility, and Steps
By ZOOD Team
Saudi Arabia now has an updated framework for non-Saudi ownership of real estate. The system sets out who may be eligible, where ownership or other real estate rights may be acquired, and which registration and transaction requirements apply.
The rules do not mean that every foreign buyer can purchase any property in any location. Eligibility depends on the buyer’s legal category, the property’s location, the type of right being acquired and the conditions attached to the relevant geographic ownership zone.
Can foreigners buy property in Saudi Arabia?
Yes, non-Saudi individuals, companies and other eligible entities may own real estate or acquire other real rights within approved geographic zones and subject to the rules of each zone. A legally resident non-Saudi individual also has a separate route to own one property for personal residence outside those zones, except in Makkah and Madinah.
Important
Geographic zones, percentages, permitted rights and procedures may be updated. Buyers should verify the specific property through the official Saudi Properties portal at the time of the transaction, rather than relying on a saved map or an older article.
The framework is broader than full ownership alone. Depending on the relevant geographic-zone document, a non-Saudi may be permitted to acquire ownership or another real right, such as usufruct—the right to use and benefit from a property for a defined period without necessarily holding full ownership.
The zone rules may determine the locations available, the types of rights that can be acquired, maximum ownership percentages, the maximum duration of usufruct and other conditions related to location or use. A city being generally included does not mean every property within it is automatically eligible.
The law expressly preserves better rights available under other regimes, including Premium Residency rules and the framework applying to GCC nationals. Buyers should identify their legal category before applying the general rules.
Before a non-resident individual can own property or acquire another real right, the Executive Regulation requires three initial elements:
REGA states that the non-resident journey begins through Saudi missions and embassies abroad for digital-identity issuance before the buyer continues through the official property portal. The exact operational steps should be checked at the time of application.
A legally resident non-Saudi individual may acquire property within approved geographic zones under the conditions of each zone. The law also provides a separate route allowing that resident to own one property for personal residence outside the zones, except in Makkah and Madinah.
This is not an open permission to buy multiple properties outside the zones, and the residential route should not be used to purchase a commercial or investment property. The Executive Regulation also sets out how a spouse and non-Saudi descendants are treated for the purposes of the family residence.
For individual buyers, the right to own property or acquire another real right in Makkah and Madinah is restricted to Muslims. Eligibility still depends on the approved geographic zone, the permitted type of right, the percentage limits and the conditions that apply to the specific location.
Saudi companies with foreign ownership, listed companies and investment funds are subject to separate provisions. Being Muslim does not by itself make every property in either city eligible, and being located in Makkah or Madinah does not mean the entire city is open to individual foreign ownership.
The Saudi Properties portal is the official source for current geographic ownership zones. It is intended to show the approved locations, permitted rights, percentages, usufruct periods and conditions that apply to each zone.
The property itself should be checked on the live portal at the time of the transaction. The name of a city or neighbourhood is not enough to confirm eligibility, and published boundaries or conditions may change.
Determine whether the buyer is a legal resident, non-resident, Premium Residency holder, GCC national, foreign company or Saudi company with foreign ownership. This affects the documents, approvals and legal route.
Check the property on the official geographic-zone map. Confirm the available right, permitted use, ownership percentage, usufruct duration and any city-specific restrictions.
Check the title information and Real Estate Registry record, the seller’s authority, the licensed broker and advertisement, the permitted property use, shared obligations and service charges.
A non-resident individual completes the digital identity, bank account and Saudi mobile requirements. A foreign company completes Ministry of Investment registration, ownership disclosure, representation and banking requirements.
Applications to own or acquire a real right are submitted through the official portal linked to the Real Estate Registry. Financial transactions connected with ownership or disposal must be completed through electronic payment methods.
The contract should clearly address the price, payment dates, obligations, service and maintenance fees, delay and cancellation terms, resale or leasing restrictions, taxes and regulatory fees.
Ownership or another real right becomes valid after registration under the applicable real estate registration rules. A preliminary contract or payment receipt is not a substitute for final registration.
Off-plan property is sold before construction has been completed. This makes verification of the project, developer, contract and payment arrangements especially important.
Payment warning
Do not transfer a booking payment or instalment to a personal account or to an account that cannot be verified as the project’s authorized account. Confirm the project license, developer status and official escrow arrangements through REGA’s services.
Saudi Arabia applies a Real Estate Transaction Tax of 5% to taxable real estate disposals, subject to statutory conditions and exemptions. The buyer and seller should confirm which party is responsible under the transaction documents and whether any exemption applies.
The Executive Regulation sets a 2% regulatory fee on the value of a non-Saudi’s disposal of real rights in Riyadh, Makkah, Madinah and Jeddah. The fee concerns a disposal by the non-Saudi and should not automatically be described as an additional purchase tax on every acquisition. Disposals outside those locations and specified exempt cases may be subject to a zero rate.
Other costs may include registration, brokerage, valuation, financing, legal advice and service charges. The final amount depends on the property, transaction and parties involved and should be confirmed before the buyer commits.
No. Property ownership does not automatically grant Saudi residency. The law states that ownership or another real right does not create additional rights or privileges beyond those legally attached to that property right.
Saudi Arabia has separate residency products, including a Real Estate Owner Residency product under the Premium Residency framework. Any residency route requires a separate application and compliance with the product’s current conditions. A purchase contract should not be treated as approval or a guarantee of residency.
Mortgage availability is determined by the lender’s policy and the applicant’s legal status, income, residence, credit history, property type and location. Eligibility to own property does not mean automatic eligibility for finance.
Before signing a purchase contract, the buyer should obtain written preliminary financing approval and review the financing amount, deposit, total cost, term, early-settlement conditions, security arrangements and the possible effect of residence expiry.
Finance Note
Mortgage eligibility and terms should be confirmed directly with the financing institution. ZOOD project information is not a financing approval.
A ZOOD advisor can provide approved information about ZOOD projects, locations, current options and the process for registering an enquiry. Clear project information can help a prospective buyer compare options and understand the next step.
Eligibility to own, legal interpretation, tax, residency and financing questions must be confirmed with official authorities and qualified professional advisers. Providing project information does not constitute legal approval for the buyer to own a property.
Yes, a non-resident may acquire eligible property rights within approved geographic zones after meeting the digital identity, Saudi bank account and Saudi mobile-number requirements and complying with the relevant zone rules.
A resident may acquire property within approved zones according to their rules. The separate route outside those zones is limited to one property for personal residence and excludes Makkah and Madinah.
Yes, in locations shown within the approved geographic-zone framework and subject to the permitted right, use, percentage and other applicable conditions.
No. For individual buyers, ownership or acquisition of another real right in Makkah and Madinah is restricted to Muslims, and all other zone conditions must still be met.
No. Property ownership does not automatically provide residency. Any real-estate-linked Premium Residency route is a separate application with separate conditions.
Taxable real estate disposals are generally subject to 5% Real Estate Transaction Tax, with statutory exemptions and conditions. A separate regulatory fee may apply to certain disposals by non-Saudis.
Potentially, if the buyer and property are eligible and the project and developer are licensed. The buyer should verify the escrow account, contract and implementation plan before payment.
Use the official Saudi Properties portal operated under REGA to review current geographic zones, permitted rights, percentages and conditions.
Explore with Clarity
Explore ZOOD projects or speak to a ZOOD advisor for the latest approved project information. Eligibility to own must be verified separately under the current official rules.
