MULKIYA · GUIDES
Premium Residency and Saudi Property Ownership
Premium Residency holders keep broad ownership rights alongside the new law, with usufruct up to 99 years in Makkah and Madinah. Here is what changes.
Your regime still stands
Premium Residency is Saudi Arabia's long-stay status for investors and professionals, and it survives the new ownership law. Royal Decree M/14, in force since 22 January 2026, governs non-Saudi ownership in general. The Premium Residency law continues beside it, and holders keep the property rights their status grants. Council of Ministers Decision 43 of 23 June 2026 endorsed the designated zones and implementing regulations that now shape the market. For a holder, the practical question is not whether you may buy, but what each regime adds.
Broad ownership, checked parcel by parcel
Premium Residency grants broad residential ownership rights, wider than the zone-only rule that binds ordinary non-residents. The fine-grained interaction between the Premium Residency law and the new zones document has not been fully published, so treat any specific parcel as unconfirmed until checked. The designated zones still matter: they define where ordinary non-residents may buy, and more than 100 now exist kingdom-wide. Before you commit to a unit, confirm the parcel against the official register.
Makkah and Madinah: usufruct up to 99 years
The two holy cities are the exception to ordinary ownership. Direct ownership inside their designated zones is limited to Saudi companies and Muslim individuals. Premium Residency gives you a different instrument there: usufruct for up to 99 years under the Premium Residency law. Usufruct is a real, registrable right to use and benefit from the property, including letting it, for its full term. It is not full ownership, and it does not convert into full ownership. Structure the deal with that difference clear from the start.
The same taxes apply
Premium Residency changes your status, not the tax table. The 5% transaction tax at purchase is legally the seller's liability, though commonly priced into the deal. If you engage a broker, commission is capped at 2.5% plus VAT on the commission. When you sell, you pay 5% as transferor, plus the 2% disposal fee if the property sits in Riyadh, Jeddah, Makkah or Madinah. Elsewhere that exit fee is 0%.
Buy in a cooling market, then verify
Do not let residency status rush the purchase. The official residential price index fell year on year into 2026, so this is a cooling market where verification beats speed. When you are ready, the next step is small and honest. Mulkiya's eligibility check asks five questions and a deterministic rules engine answers them against the current law, Premium Residency class included, with citations. Mulkiya is not the broker or the seller and takes no commission or success fee. Licensed Saudi partners execute the regulated steps.
Does Premium Residency replace the new ownership law?
No. The two regimes run alongside each other. Holders keep the property rights Premium Residency grants, and the new law governs non-Saudi ownership in general.
Can a Premium Residency holder own property in Makkah or Madinah?
Not by direct ownership unless the holder is a Muslim individual buying in a designated zone. The Premium Residency route is usufruct for up to 99 years.
Is usufruct the same as a lease?
It is stronger than an ordinary lease. Usufruct is a registrable in-rem right to use and benefit from the property for its term, up to 99 years.
Do Premium Residency holders pay different purchase taxes?
No. The 5% transaction tax, the 2.5% brokerage cap and the 2% exit fee in the four cities apply the same way.