MULKIYA · GUIDES
Can Foreigners Buy Property in Saudi Arabia?
Yes. Foreign buyers may own property inside Saudi Arabia's designated zones under a law in force since 22 January 2026. Some buyer classes hold wider rights.
The law that opened the market
Saudi Arabia rewrote its foreign ownership rules in 2025. The Law of Real Estate Ownership by Non-Saudis, issued by Royal Decree M/14 on 14 July 2025, entered into force on 22 January 2026. It replaced a far more restrictive law from 2000. The practical opening came on 23 June 2026, when Council of Ministers Decision 43 approved the Implementing Regulations and endorsed the designated zones document. From that date a non-Saudi can complete a purchase inside one of the 100+ designated zones. Registration in the official real-estate registry is a validity condition of every foreign acquisition.
The buyer classes
Eligibility depends on who you are. A non-resident foreign individual may own inside the designated zones only. A resident holding an iqama may buy inside the zones and may also apply for approval to own one home outside them for personal housing. GCC nationals are covered by their own statute and broadly buy as Saudis do. Premium Residency holders keep broad residential rights under their own regime. A foreign company may buy inside the zones after registering with the Ministry of Investment and disclosing its owners.
Makkah and Madinah
The two holy cities have their own rule. Muslim individuals may own directly inside the designated holy-city zones, whether they live in Saudi Arabia or abroad. Foreign companies may not own in either city. A Premium Residency holder who does not qualify as a Muslim individual may take usufruct of up to 99 years instead. Everywhere else, the standard zone rules apply.
Three prerequisites before you can buy
Article 2 of the Implementing Regulations sets three prerequisites for a foreign individual. First, a digital identity approved by the Ministry of Interior, which non-residents obtain through Saudi embassies abroad. Second, a Saudi bank account in the buyer's name. Third, a Saudi mobile number in the buyer's name, linked to that identity. All payments move through official electronic channels. One more reality shapes planning: bank lending is structurally closed to non-residents today, so foreign buyers purchase cash-first.
What it costs, and the honest next step
The purchase costs are the same for Saudis and foreigners. The real-estate transaction tax is 5% of the price, legally the seller's liability and commonly priced into the deal. Brokerage is capped at 2.5% plus VAT on the commission, payable only if a broker is engaged. When a foreign owner sells, a 2% disposal fee applies only in Riyadh, Jeddah, Makkah and Madinah. Mulkiya is not the broker and not the seller, and it takes no commission or success fee. The honest first step is five questions about your status and your target property, answered by a deterministic rules engine against the law.
Can a foreigner buy in Saudi Arabia without residency?
Yes. A non-resident foreign individual may own property inside the designated zones once three prerequisites are in place: a digital identity, a Saudi bank account and a Saudi mobile number. Residency is not required inside the zones.
Can non-Muslims buy in Makkah or Madinah?
No. Ownership inside the designated holy-city zones is limited to Muslim individuals, whether resident in Saudi Arabia or not, and to Saudi companies. Foreign companies are excluded. Premium Residency holders may instead take usufruct of up to 99 years.
Can a foreigner get a mortgage in Saudi Arabia?
Not as a non-resident today. Saudi bank lending is structurally closed to non-residents; no identity field exists for them in the lending system. Foreign buyers should plan cash-first.
Do foreigners pay more tax than Saudis when buying?
No. The 5% transaction tax applies to the deal whatever the buyer's nationality, and it is legally the seller's liability. The foreigner-specific charge comes only on exit: a 2% disposal fee, and only in Riyadh, Jeddah, Makkah and Madinah.