Saudi Arabia to Apply New Foreign Property-Ownership Rules from January 2026
New law imposes registration, zones and fees on non-Saudi property buyers as part of Vision 2030 reforms
Saudi Arabia has announced that from January 2026 it will apply a new legal regime regulating property ownership by foreigners.
The move reflects a broader strategic reform under the kingdom’s Vision 2030 agenda, aiming to boost investment while maintaining national safeguards.
Under the reform, all foreign purchases of residential or commercial real-estate must be fully registered with the Real Estate General Authority (REGA), and buyers must supply full disclosure of identity and purpose of acquisition.
A new law, approved in July 2025, sets the framework and grants authority to define “designated zones” where non-Saudis may own real-estate rights.
The eligible categories of non-Saudis include foreign individuals, foreign companies, Saudi companies with foreign shareholding, non-profit entities and diplomatic missions.
These groups may acquire property rights only in REGA-defined zones; outside those zones ownership remains restricted.
The holy cities of Makkah and Madinah will continue to be subject to tighter conditions.
The law also introduces additional financial obligations for foreign property buyers: a combined transfer fee and tax, reportedly up to ten per cent of the property value, and possible fines of up to ten million Saudi riyals for false declarations.
Properties acquired via mis-declaration may be subject to public auction under REGA oversight.
The reform replaces the earlier law from 2000 and takes effect after a transition period; implementing regulations are to be published within 180 days of gazette-publication.
Observers note the changes mark a calibrated opening of the Saudi real-estate sector to global capital while preserving regulatory controls and national priorities.
For investors and foreign buyers, the rules signal new opportunities but also a more detailed compliance regime—requiring clear definition of zones, ownership caps and procedural transparency.
As Saudi Arabia intensifies efforts to diversify away from oil, the property sector is poised for transformation.
The deployment of these rules in early 2026 could mark a key moment in the kingdom’s investment strategy and real-estate landscape.
The move reflects a broader strategic reform under the kingdom’s Vision 2030 agenda, aiming to boost investment while maintaining national safeguards.
Under the reform, all foreign purchases of residential or commercial real-estate must be fully registered with the Real Estate General Authority (REGA), and buyers must supply full disclosure of identity and purpose of acquisition.
A new law, approved in July 2025, sets the framework and grants authority to define “designated zones” where non-Saudis may own real-estate rights.
The eligible categories of non-Saudis include foreign individuals, foreign companies, Saudi companies with foreign shareholding, non-profit entities and diplomatic missions.
These groups may acquire property rights only in REGA-defined zones; outside those zones ownership remains restricted.
The holy cities of Makkah and Madinah will continue to be subject to tighter conditions.
The law also introduces additional financial obligations for foreign property buyers: a combined transfer fee and tax, reportedly up to ten per cent of the property value, and possible fines of up to ten million Saudi riyals for false declarations.
Properties acquired via mis-declaration may be subject to public auction under REGA oversight.
The reform replaces the earlier law from 2000 and takes effect after a transition period; implementing regulations are to be published within 180 days of gazette-publication.
Observers note the changes mark a calibrated opening of the Saudi real-estate sector to global capital while preserving regulatory controls and national priorities.
For investors and foreign buyers, the rules signal new opportunities but also a more detailed compliance regime—requiring clear definition of zones, ownership caps and procedural transparency.
As Saudi Arabia intensifies efforts to diversify away from oil, the property sector is poised for transformation.
The deployment of these rules in early 2026 could mark a key moment in the kingdom’s investment strategy and real-estate landscape.
