MULKIYA · GUIDES
Buying Property in Saudi Arabia as an American Citizen
Reviewed against the official register · Updated 2026-07-30
US citizens can buy Saudi property as non-resident foreigners inside 100+ designated zones; Muslim buyers may also own directly in Makkah and Madinah.
Your buyer class
An American citizen living in the United States buys as a non-resident foreign individual, the same class as most non-GCC nationalities. An American living in a third country without Saudi residency buys in the same class; the law looks at residence, not at the passport. Under Royal Decree M/14, in force since 22-01-2026, that class may own property inside the designated zones. Council of Ministers Decision 43 of 23-06-2026 approved the Implementing Regulations and endorsed the designated zones document, more than 100 zones kingdom-wide. Registration of the purchase in the official real estate registry is a validity condition, not a formality after the fact.
Makkah and Madinah: who can own
Direct ownership inside the designated holy-city zones is limited to Muslim individuals, resident in Saudi Arabia or not, anywhere in the world. An American buyer who is Muslim may therefore own there directly, in the same way as a Saudi individual. An American buyer who is not Muslim cannot, regardless of wealth or residency. Foreign companies are excluded from both cities entirely. Premium Residency holders follow a different rule in the two cities: usufruct for up to 99 years instead of ownership.
The three prerequisites
Implementing Regulations Article 2 sets three prerequisites for a non-resident individual. First, a digital identity issued or approved by the Ministry of Interior, which non-residents obtain through a Saudi embassy; for Americans, the embassy in Washington or one of the Saudi consulates in the United States. Second, a Saudi bank account in your own name. As a US person, expect additional tax self-certification questions at account opening, since Saudi banks document American account holders under their international reporting duties. Third, a Saudi mobile number in your name, linked to the digital identity. The remote mechanics for the account and the number are still evolving, so start the identity step early.
Cash first, and the real costs
Saudi bank lending is structurally closed to non-residents today; no identity field exists for them in the lending process, and American banks rarely lend against property abroad. An American buyer purchases with cash. At purchase, the Real Estate Transaction Tax is 5% of the price, legally the seller's liability but commonly priced into the deal. Brokerage is capped at 2.5%, plus VAT on the commission, only if a broker is engaged. When you sell, a 2% disposal fee applies in Riyadh, Jeddah, Makkah and Madinah, and 0% elsewhere. One American-specific note: the United States taxes its citizens on worldwide income, so Saudi rental income and any gain on sale are generally reportable at home as well. Plan the holding with a cross-border tax adviser before you buy.
The market you are entering
Enter with clear eyes: this is a cooling market, not a boom. The official residential price index fell 3.6% year on year in the first quarter of 2026. Cooling markets favour patient cash buyers who verify the parcel and the developer instead of chasing momentum. Gross rental yields sit at roughly 7-9% in licensed yield data, a band rather than a promise. Rents inside Riyadh's urban boundary are frozen for five years, which matters if you are buying for yield. Confirm any specific parcel against the official Saudi register of designated zones before you price it.
The honest next step
Eligibility is decided by the law, not by an agent's opinion. Mulkiya's rules engine is deterministic and cites the law it applies. Mulkiya is not the seller and not the broker, takes no commission and no success fee, and the deals you see come direct from the developer. Licensed Saudi partners execute the regulated acts. The next step is the seven-question eligibility check: answer seven questions and see, cited to the law, which buyer class you fall in and which zones that opens.
Can an American citizen buy property in Makkah or Madinah?
Only if the buyer is Muslim. Muslim individuals from anywhere in the world, resident in Saudi Arabia or not, may own property directly inside the designated holy-city zones. Non-Muslim buyers cannot own in Makkah or Madinah, and foreign companies are excluded from both cities. Premium Residency holders may instead hold usufruct for up to 99 years.
Do I need Premium Residency to buy in Saudi Arabia?
No. Premium Residency is a separate regime with its own rights, including usufruct of up to 99 years in Makkah and Madinah. A non-resident American buyer uses the designated-zones path under Royal Decree M/14 and the 2026 regulations, and does not need Premium Residency to own inside a zone.
Can a non-resident American get a Saudi mortgage?
No. Saudi lending systems have no identity field for non-residents, so bank financing is structurally closed today. US banks rarely lend against property abroad either. Cash is the correct plan.
Does a Saudi purchase change my US tax position?
The Saudi rules do not remove your American reporting. The United States taxes citizens on worldwide income, so Saudi rental income and gains on sale are generally reportable in the US as well. Nothing here is tax advice; take the structure to a cross-border tax adviser before you commit.