MULKIYA · GUIDES
Buying Property in Saudi Arabia as a European
EU and UK citizens may buy Saudi property inside 100+ designated zones under the law in force since 22 January 2026. Here is the path and the cost.
One law for every passport
The new law does not rank European passports. A buyer from France, Germany, Italy, Spain or the United Kingdom is treated the same way: a non-resident foreign individual who may own property inside the designated zones. Royal Decree M/14 brought the law into force on 22 January 2026. Council of Ministers Decision 43 of 23 June 2026 approved the implementing regulations and endorsed the designated zones document, and buying became practical from that date. More than 100 designated zones now cover the Kingdom's main cities and giga-projects.
What you arrange before you buy
Three things must exist before a non-Saudi individual can acquire. A digital identity, obtained by non-residents through Saudi embassies abroad. A Saudi bank account in your name. A Saudi mobile number linked to that identity. The remote mechanics are still maturing, so do not assume everything can be completed from your desk. Registration in the Real Estate Registry is a validity condition of the acquisition, not paperwork afterwards.
Cash is the realistic plan
Saudi banks cannot lend to a non-resident today. Their systems have no identity field for a borrower without a Saudi record, so an application has no path in. Home-country banks rarely lend against property abroad either. Treat the purchase as a cash decision. If a developer offers staged payments on an off-plan unit, that is a payment schedule, not credit. Size your budget accordingly, and keep the transaction costs below in the same calculation.
Makkah and Madinah: who can own
Direct ownership inside the designated holy-city zones is limited to Muslim individuals, resident or not, anywhere in the world. A European buyer who is Muslim may therefore own there directly. A European buyer who is not Muslim cannot, regardless of wealth or residency. Foreign companies are excluded from both cities entirely. There is one alternative: Premium Residency holders may hold usufruct rights for up to 99 years in Makkah and Madinah under the Premium Residency law.
The cost stack, honestly stated
The transaction tax at purchase is 5% of the price. It is legally the seller's liability, but it is commonly priced into the deal, so plan as if you bear it. If you engage a broker, commission is capped at 2.5% plus VAT on the commission. On resale you pay 5% as transferor, plus a 2% disposal fee, but only in Riyadh, Jeddah, Makkah and Madinah. Outside those four cities the disposal fee is 0%. There are no verified fixed registry fees to budget beyond these.
Read the market, then check yourself
Saudi home prices are not climbing. The official residential price index fell year on year into 2026, so negotiate from data, not from a pitch deck. Gross yields in the main cities are roughly 7-9%, a rough band that swings by district. When the numbers work, the honest next step is small. Mulkiya's eligibility check asks five questions about you and the property, and a deterministic rules engine returns an answer cited to the current law. Mulkiya is not the broker or the seller and takes no commission. Licensed Saudi partners execute the regulated steps.
Does it matter which European country I am from?
No. The law classes you as a non-resident foreign individual. Eligibility turns on your buyer class and the zone, not your passport.
Can a European buy in Makkah or Madinah?
Only Muslim individuals may own directly in the designated holy-city zones. Premium Residency holders may instead hold usufruct for up to 99 years.
Can I buy through a foreign company?
A foreign company with no Saudi establishment may own inside the designated zones only, after registering with the investment ministry and meeting disclosure rules. Companies are excluded from Makkah and Madinah.
Can a non-resident European get a Saudi mortgage?
No. Lending systems have no identity field for non-residents, so bank financing is structurally closed today. Cash is the correct plan.