Expat property ownership in Saudi Arabia: full details announced
New information has been revealed
Nearly a month ago, it was announced that Saudi Arabia will now allow expats to buy property in the Kingdom. The Saudi Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, approved a new law regulating property ownership by non-Saudis. Now, full details about expat property ownership in Saudi Arabia have been revealed.
According to Saudi Gazette, the law consists of 15 articles and will come into force 180 days after its publication. Per the last announcement, non-Saudis will be allowed to buy property—but only in designated areas from January 2026.
The articles
- A non-Saudi may own real estate or acquire other real rights in real estate. Rules like which geographic zones non-Saudis may own or acquire real rights in, the types of real rights non-Saudis may acquire, the maximum percentage of ownership permitted to non-Saudis within such zones, and the maximum duration for usufruct rights for non-Saudis are yet to be determined. A person legally residing in the Kingdom may own one residential property outside the designated zones, except in Makkah and Madinah. In Makkah and Madinah, ownership will be limited to Muslims.
- A non-listed company incorporated under Saudi law with one or more foreign shareholders may own or acquire real rights in property within the zones
- Listed companies, investment funds, and special-purpose entities licensed under Saudi law may own or acquire real rights in property across the Kingdom—including in Makkah and Madinah — following the Capital Market Law.
- This law shall not prejudice the application of the Premium Residency Law, the GCC nationals’ reciprocal property ownership framework, or any other laws granting more favourable rights to non-Saudis.
- Ownership or acquisition of real rights by a non-Saudi does not confer any privileges beyond those prescribed by law for the holder of such rights.
- Given that the same applies vice versa, accredited diplomatic missions in the Kingdom may own official premises and residences for heads of mission and staff.
- Non-Saudi companies, non-profit entities, or other legal persons designated by the Council of Ministers must register with the competent authority before acquiring property or real rights in the Kingdom, in accordance with the Regulations.
- Without prejudice to existing taxes or fees, the Authority shall levy a fee not exceeding five percent of the value of any disposal by a non-Saudi of real rights in property in the Kingdom.
- Without prejudice to harsher penalties under other laws, any violation of this law or its regulations shall result in one or more of the following:a. A warning.
b. A fine not exceeding 5% of the value of the real right concerned, capped at SR10,000,000. The regulations shall include a schedule of violations and corresponding penalties, taking into account the seriousness, circumstances, and effects of the violation.
- One or more committees of at least three legal specialists shall be formed by decision of the Authority’s Board to examine violations and impose penalties under Article 10. The Authority’s Board shall set the rules, procedures, and compensation for committee members. Committee decisions may be appealed before the Administrative Court within 60 days of notification.
- Without prejudice to harsher penalties under other laws, a non-Saudi who knowingly provides false or misleading information to acquire property or rights under this law shall be subject to:a. A fine not exceeding five per cent of the value of the real right concerned, capped at SR10,000,000.
b. Forced sale of the real right.
- The Regulations shall be issued by the Council of Ministers within 180 days of publication, based on a proposal by the Authority’s Board and approval of the Council of Economic and Development Affairs, and shall take effect upon enforcement of this Law. The regulations shall determine:a. Procedures for non-Saudis acquiring real rights in property.
b. Requirements for enforcing this law on non-Saudis not residing in the Kingdom.
c. The applicable fee under Article 9, based on property type, purpose, and location.
d. Transactions subject to a zero per cent fee and related conditions.
- This law repeals the “non-audi real estate ownership and investment law” issued by Royal Decree No. (M/15) dated 17/4/1421H, and annuls any conflicting provisions.
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