Foreigners will now be able to purchase property in all Saudi Arabian cities starting January 2026. The latest move has unveiled an updated law that permits non-Saudis to own and invest in real estate. The Saudi Government has broken decades-old barriers, officially opening the property market for individuals and companies at home and abroad.
The latest policy comes as the Kingdom seeks to attract large global capital by accelerating the expansion of its economy and investment. The move is driven by Saudi Arabia’s Vision 2030 goal to forge a diversified, global economy.
Officials from the Real Estate General Authority (REGA) confirmed that the new foreign property ownership is far more than a policy update. The government intends to transform the sector by stimulating real estate activity to enhance urban development and architectural standards across major cities, while generating job opportunities for citizens.
What Foreigners Can Buy?
- Traditional Property: Homes, residential land, and agricultural farms (specifically approved zones)
- Mega-Project Access: Direct investment in NEOM, Qiddiya, and the Red Sea Global initiatives.
- Special Zones: Designated special economic zones and specific commercial land.
- Digital Fractional Ownership: Investors can purchase tokenized stakes in real estate without physically visiting Saudi Arabia.
Mecca And Madina Are Restricted To…
Foreigners can purchase homes, land, and farms from January 2026; however, Mecca and Madinah are restricted to Muslim buyers only. This latest and transparent system comes with strict guidelines related to compliance and tax obligations, managed by ZATCA and REGA.
Saudi Arabia Real Estate Tax Advantage
| Tax Type | Rate | Applies To | Notes |
|---|---|---|---|
| Annual Property Tax | 0% | All owned real estate | No recurring annual or holding tax. |
| Real Estate Transaction Tax (RETT) | 5% | Sale price of property at time of transfer | One-time tax; replaces former 15% VAT on residential sales. |
| Capital Gains Tax | 0% | Individuals selling property | No tax on profits from property appreciation. |
| Rental Income Tax (Individuals) | 0% | Personal rental income | Individuals pay no income tax on rental earnings. |
| Rental Income Tax (Corporates) | 20% | Companies earning rental income | Standard corporate tax applies. |
Required Documents (Full List Of Executive Documents Pending Final Release)
| Category | Details |
|---|---|
| Mandatory Registration | All transactions must be fully registered with the Real Estate Registry |
| Key Required Documents | – Valid residency permit (Iqama) for residents- Proof of source of funds / financial standing- Official RETT payment certificate from ZATCA |
| Penalties for Non-Compliance | Providing false declarations or misleading information can result in fines up to SAR 10 million and the public auction of the property. |
