Saudi Arabia will open its entire real estate market to foreign buyers starting January 2026, lifting previous ownership restrictions and allowing international individuals and companies to purchase residential, commercial, agricultural, and industrial properties nationwide.
The new law aims to boost foreign investment, contribute to economic diversification under Vision 2030, and support the Kingdom’s ambitious urban development projects.
The updated Law of Real Estate Ownership by Non-Saudis permits foreigners to own up to 70% to 90% of property units in any given development, depending on regulatory caps designed to maintain local market balance. However, property ownership in the holy cities of Makkah and Madinah remains limited to foreign Muslims only.
Both foreign individuals and foreign-owned companies will be eligible to buy and register real estate, subject to compliance with the law’s provisions.
A 5% Real Estate Transaction Tax will be imposed on property sales, while no annual property taxes will apply, making the investment more appealing. The Real Estate General Authority (REGA) and Zakat, Tax and Customs Authority (ZATCA) will oversee enforcement, and violations such as false ownership declarations carry fines up to SAR 10 million (around USD 2.7 million) and forced auctioning of properties.
This regulatory reform is positioned to attract significant foreign direct investment, especially in mega-projects like NEOM, Qiddiya, and the Red Sea developments, enhancing Saudi Arabia’s position as a competitive real estate market internationally. It also opens opportunities for expatriates within the Kingdom to participate more fully in the property market.
The law’s implementation from January 2026 marks a historic transformation in Saudi Arabia’s real estate sector, aligning the market with international standards, increasing transparency, and stimulating economic growth through broader foreign participation.
Image Credit – propertysaudiarabia.com
