Frequently Asked Questions (FAQs)
Question about selling
Yes—but ownership is limited. Foreign residents (iqama holders) may purchase property for personal residence with Ministry of Interior approval. Ownership is currently restricted in sensitive areas.
Saudi Arabia enacted a new Real Estate Ownership Law on July 8, 2025, allowing broader ownership for foreign individuals and companies starting January 2026, within designated zones such as Riyadh and Jeddah.
Yes—but only if they are registered in Saudi Arabia, meet the SAR 30 million minimum investment, and complete development within five years
No—freehold ownership in the holy cities is restricted to Saudi nationals. Foreigners may lease property for up to 2 years, renewable—except in limited inheritance or waqf (endowment) cases.
Required documents include:
Valid iqama for individuals or Ministry of Investment license for companies
Proof of funds and investment/business plan
Approval from REGA and/or Ministry of Interior
Implementation rules appear within 180 days after formal publication, ahead of January 2026 enforcement
Real Estate Transaction Tax (RETT): 5% of sale value (paid by seller)
VAT: 15% on brokerage, legal or consulting services
Corporate tax: 20% on profits for foreign companies (no personal income tax for individual owners)
Saudi banks may not finance foreign buyers directly. Foreign individuals typically pay in cash. Interest-free, Sharia‑compliant options like Murabaha or Ijara are more common. ✔️ (Based on industry reports.)
Yes—foreign individuals may qualify for Premium Residency if they purchase a property of SAR 4 million or more, paid in cash, and hold legal residency or iqama.
Yes—foreign buyers investing via companies must retain ownership for at least five years, and complete any required development within that time.
In restricted cities like Makkah/Madinah, foreigners may lease up to 99 years (commonly used in practice). Leasing elsewhere is generally permitted without restriction.
Summary
Question Quick Answer Can I buy property as a foreigner? Yes—if you hold iqama or invest via licensed company, and it's in designated zones. When does the new law take effect? January 2026, with implementing rules by mid-2026. Can I own in Makkah/Madinah? Only via inheritance, waqf, or short-term lease—not freehold ownership. Minimum investment? SAR 30M for corporate commercial projects; SAR 4M+ for premium residency. Financing available? Limited—cash purchase is common; Islamic finance models may apply.