What does the property purchasing process look like for foreigners in Saudi Arabia?

Purchasing real estate in Saudi Arabia seemed almost impossible for people from outside the Kingdom just a few years ago. However, dynamic economic changes, the ambitious Vision 2030 program, and the country's gradual opening to investors have made this topic increasingly interesting today. Importantly, brand-new regulations will come into effect in 2026, allowing even non-residents to purchase apartments, houses, or commercial premises in designated zones for the first time. This makes Saudi Arabia one of the most interesting markets in the region — both for investors and those looking for property abroad.

But what does the entire purchasing process look like? What conditions must be met, how much does it cost, and what should you watch out for? In this article, I explain step-by-step what you should know before making the decision to buy property in Saudi Arabia — especially in light of the upcoming legal changes.

Current legal status and upcoming changes (2025 → 2026)

The real estate market in Saudi Arabia has been undergoing a true revolution for several years. Until now, foreigners could only buy property in exceptional cases — usually on the condition of holding Saudi residency (iqama) or a special Premium Residency status. Most foreign buyers were also limited to specific purposes, such as using an apartment for their own needs or purchasing premises for business operations.

This is changing with the new "Real Estate Ownership Law by Non-Saudis" announced in 2025, which will come into force at the beginning of 2026. This is a breakthrough moment, as it will for the first time allow the purchase of property by non-residents, i.e., people who do not have residency in Saudi Arabia.

The new regulations:

• expand the range of properties available to foreigners,
• simplify procedures by moving most formalities to digital systems,
• define zones where property acquisition will be possible without special permits,
• aim to attract individual investors and foreign companies.

The law is part of the long-term Vision 2030 strategy, which aims to diversify the economy and develop modern cities — such as Riyadh, Jeddah, or futuristic projects on the Red Sea coast. For those interested in foreign investments, this means opening up entirely new opportunities, but also the need to carefully monitor regulations that will be clarified in the coming months.

Who can buy property in Saudi Arabia?

Until recently, the ability for foreigners to purchase property in Saudi Arabia was strictly limited. Today, the situation looks completely different — and from 2026, the catalog of eligible persons will expand even further. In practice, this means that various groups of foreigners will have access to the market, although each operates under slightly different rules.

Residents holding an iqama (residence permit)

People living permanently or long-term in Saudi Arabia and holding an iqama can already purchase property to meet their own housing needs. The conditions are relatively simple:

• purchase for personal use (e.g., apartment, house),
• one property per family (in most cases),
• previously, a request for approval was required — currently, the procedure is increasingly simplified and in many cases digital.

For expats working in Riyadh, Jeddah, or industrial cities, this is the most popular form of property acquisition.

Non-residents (people from outside the country) — a new group from 2026

The biggest change in the law concerns this very category. From 2026, people without Saudi residency will also be able to purchase property in designated zones. What does this mean in practice?

• the possibility of buying an apartment or house without having to move to the country,
• greater availability of investment properties,
• purchase in cities open to foreigners (including Riyadh, Jeddah, and Red Sea projects).

This is a huge convenience for foreign investors who want to diversify their portfolio or enter a new, dynamically developing market.

Foreign companies and investment funds

Companies with foreign participation can already acquire properties necessary for business operations — e.g., offices, halls, warehouses, or hotels. The new regulations will additionally:

• facilitate the purchase of land for project development,
• expand the catalog of investments permitted for companies from outside the country,
• aim to attract global real estate funds.

Thanks to this, Saudi Arabia is becoming more competitive against markets like the UAE or Qatar.

Holders of Premium Residency ("Saudi green card")

This is the group with the broadest rights. Premium Residency grants unique privileges:

• the ability to purchase various types of property (residential and commercial),
• no requirement to have a sponsor (employer),
• the right to bring family and conduct business freely.

The program can be attractive to investors or people planning a longer presence in the country. One of its paths is Real Estate Owner Residency, i.e., residency for people owning property of a certain value.

Where can a foreigner buy property?

Although Saudi Arabia is dynamically opening its real estate market to foreigners, the availability of specific locations varies depending on regulations and the legal status of the buyer. It is therefore worth knowing which places are currently available and which will be opened after the new regulations come into force in 2026.

Main cities open to foreigners

Most investment opportunities are located in large, developing urban centers:

Riyadh

The country's capital is the political, economic, and financial center of Saudi Arabia. Foreigners can buy here:

• apartments,
• houses in modern residential districts,
• commercial premises.

Riyadh is one of the key areas set to be fully opened to foreign buyers after 2026.

Jeddah

The most cosmopolitan city in Saudi Arabia and the main port on the Red Sea. Popular among expats and investors, especially thanks to:

• coastal projects,
• the tourist character of the city,
• a large international community.

Tourist projects and modern cities of the future

As part of Vision 2030, many futuristic urban projects and resorts are being built to attract investors and tourists from all over the world. In many of them, the possibility of easier property acquisition by foreigners is already being planned.

The most important locations include:

• NEOM – a futuristic "city of the future" being built from scratch in the north of the country,
• The Red Sea Project – luxury resorts and private islands,
• Qiddiya – a mega-entertainment project near Riyadh,
• Diriyah Gate – a historic district being rebuilt into a world-class cultural center.

These projects often have their own economic and investment regulations, which may further facilitate property purchases by foreigners.

Special rules in Mecca and Medina

Mecca and Medina are the two most important cities of Islam — which is why they have been subject to unique rules regarding property ownership for years.

The current and future situation is as follows:

• Direct ownership for non-Muslims will still not be permitted.
• People of the Islamic faith may obtain limited ownership rights in designated zones, but the details are still being finalized.
• Indirect investments (e.g., through funds or publicly traded companies) remain possible for everyone, within specified limits.

Even after the market opens in 2026, these two cities will retain their special status — therefore, anyone planning to buy property in Mecca or Medina should keep up to date with the latest regulations.

Investment zones determined by REGA

The Real Estate General Authority (REGA) plays a key role in the process of opening the market, as it:

• determines where foreigners can buy property,
• defines what types of property are available (apartments, houses, service premises),
• publishes regulations concerning foreign investors.

From 2026, REGA is expected to publish a detailed map of zones, which will make it much easier for foreigners to plan a purchase.

Step-by-step property purchase process

Although Saudi Arabia is introducing many changes, the property purchase process itself remains quite orderly and increasingly digital. The country is focusing on modern solutions, so most formalities — from document verification to final registration — can be handled online. Here is what a typical transaction flow looks like for a foreigner.

Step 1. Checking buyer eligibility

The first step is to determine whether a person can buy property in a specific location and under what rules. In practice, this means:

• checking whether the buyer is a resident, non-resident, or Premium Residency holder,
• verifying whether the location is in a zone available to foreigners,
• ensuring that the type of property (residential, commercial, land) is permitted.

From 2026, this process will become simpler, as REGA is expected to provide transparent rules regarding individual zones.

Step 2. Choosing a location and confirming the zone

After determining eligibility, the buyer chooses the property of interest. At this stage, it is worth:

• checking the legal status of the plot or building,
• verifying whether the location is open to foreigners,
• confirming the future development plan of the area, especially in dynamically developing projects (e.g., NEOM or Diriyah).

In most modern investments, developers work with consultants who help foreigners navigate the formal process.

Step 3. Preliminary or reservation agreement

Once the choice is made, a reservation agreement is signed. This usually involves:

• paying a deposit,
• establishing a payment schedule (especially when buying from a developer),
• defining withdrawal conditions and confirming that the transaction depends on positive legal verification.

This stage looks similar to many European countries.

Step 4. Legal due diligence

This is one of the most important elements of the purchase. The buyer's lawyer or advisor analyzes:

• the property title,
• online books and registers (most often in the Najiz system),
• potential mortgage encumbrances,
• compliance of the project with Saudi regulations.

Saudi Arabia is digitizing its real estate system, so most documents are available electronically, which significantly shortens verification time.

Step 5. Finalizing the transaction and transferring ownership

Once all checks are completed successfully, the parties proceed to finalize the purchase. Key stages are:

• signing the electronic sales agreement,
• making the payment (bank transfer or stage payment to the developer),
• submitting an application for ownership transfer in the Najiz or REGA system.

Everything is done remotely — without the need for a notary visit, as the notary system in Saudi Arabia has been largely replaced by digital systems.

Step 6. Registration of the title deed

The final stage is the formal registration of the title deed. The system generates:

• a digital title deed,
• confirmation of entry into the Ministry of Justice register.

From this moment, the buyer is the official owner of the property in Saudi Arabia.

Costs associated with purchasing property

Purchasing property in Saudi Arabia is not just the price of the apartment or house itself. As in other countries, there are additional administrative fees, taxes, and service costs that are worth knowing about before making an investment decision. A well-planned budget allows you to avoid later surprises.

Real Estate Transfer Tax

This is the most important additional cost. In Saudi Arabia, the standard rate is 5% of the property value.

This tax is paid at the time of finalizing the transaction — without paying it, the transfer of ownership will not be registered in the system.

Registration and administrative fees

These are relatively small but mandatory. They include, among others:

• fees for issuing a digital title deed,
• administrative fees for the ownership transfer procedure (Najiz or REGA system),
• costs of document translations, if required.

The total usually amounts to a few percent of the property value or a specific flat fee.

Lawyer or advisor fees

Although the process in Saudi Arabia is mainly digital, the support of a local lawyer or licensed real estate advisor is very helpful — especially for foreigners.

Costs depend on the scope of services, but most often include:

• verification of the title deed,
• checking developer agreements,
• preparing documentation,
• representation before administrative bodies.

In the case of premium investments or purchases by a non-resident, it is worth treating this as an investment in transaction security.

Potential costs of residency programs

If the property purchase is part of a plan to obtain Premium Residency, it is worth also including the fees associated with this program:

• 800,000 SAR – one-time fee for permanent residency,
• 100,000 SAR per year – residency renewed every year.

In the case of the "Real Estate Owner Residency" path, property worth at least 4 million SAR is additionally required.

Property maintenance costs

After the purchase, there are also ongoing costs, such as:

• homeowners' association fees (usually in modern complexes),
• utilities,
• potential property insurance,
• management fees in the case of an investment purchase (e.g., short-term rental).

Financing and additional bank costs

If the buyer uses a mortgage, it is worth remembering:

• the application processing fee,
• bank commission,
• interest rates depending on residency status and down payment.

In practice, banks require a higher down payment from people who are not residents.

Premium Residency and the "Real Estate Owner Residency" path

For many foreigners, purchasing property in Saudi Arabia is not just a financial investment, but also a chance to obtain a prestigious residency status. The Premium Residency program (often called the "Saudi green card") offers broad opportunities for living and working in the Kingdom without the need for a sponsor. One of its most interesting options is the path based on property ownership.

What is Premium Residency?

Premium Residency is a special status granted to foreigners that offers much broader rights than a standard iqama. The most important benefits are:

• the ability to acquire residential and commercial property,
• the right to conduct business without a Saudi sponsor,
• freedom to change jobs,
• the possibility of bringing a spouse, children, and parents,
• no need to apply for a residence visa annually.

The program was created to attract investors, qualified professionals, and people who want to develop professionally as part of the Vision 2030 strategy.

Types of Premium Residency

The program offers two main forms:

1. Permanent Premium Residency

• one-time fee: 800,000 SAR,
• no need to renew status,
• full rights for an indefinite period.

2. Annual Premium Residency

• cost: 100,000 SAR per year,
• status renewed every 12 months,
• still with a wide range of possibilities for the holder.

"Real Estate Owner Residency" path — residency for owning property

This is one of the most attractive options for people planning to buy property in Saudi Arabia.

To qualify, one must:

• own property worth at least 4 million SAR,
• prove that the property was purchased with own funds (without a mortgage and without encumbrances),
• present a valuation performed by a licensed appraiser (in accordance with Saudi market standards),
• pass verification regarding security, income, and source of funds.

This path is particularly popular among investors interested in buying luxury apartments in Riyadh, Jeddah, or new mega-projects on the Red Sea.

Why consider Premium Residency?

This status is not just legal convenience. It is also:

• greater investment flexibility – the ability to buy multiple properties,
• easier access to financing,
• benefits for the whole family,
• image and prestige, which is of great importance in Gulf countries.

For people planning a longer stay or developing a business in Saudi Arabia, this is a solution definitely worth considering.

Key issues to remember (but no need to be afraid of!)

• Changing regulations – the market in Saudi Arabia is developing dynamically, so regulations are regularly updated. This is good news: the rules are becoming increasingly friendly to buyers from abroad.
• Restrictions in some cities – Mecca and Medina have a special religious status, so additional rules apply there. In practice, most investors choose Riyadh, Jeddah, or new tourist projects anyway.
• Verification of the source of funds – a standard banking procedure, similar to many European countries. If the funds are legal and documented — there is nothing to worry about.
• Bank financing – non-residents more often buy with cash, but residents and Premium Residency holders have increasingly better access to loans.
• Formal and cultural differences – the system is different from the European one, but most formalities are handled digitally, and local advisors help navigate the process without stress.

Purchasing in new mega-projects – investments under construction always require patience, but it is in such locations that the growth potential is the highest.