Steps and Conditions for Foreign Real Estate Ownership in Saudi Arabia

Owning a home in Riyadh or an apartment overlooking the sea in Jeddah has been a dream for residents and investors for years. Today, it is no longer just a wish. Effective from January 22, 2026, the law allowing non-Saudis to own real estate officially entered into force, opening a new chapter in the history of Saudi real estate.

This decision is not just a legal amendment; it is an open invitation from the Kingdom to the world to be part of its renaissance. However, with the issuance of the decision, questions began to pour in: How do I apply? Does it include Makkah and Madinah? And what are the "restricted zones" to be wary of?

As we have accustomed you to credibility and accurate analysis far from "hype," we place in your hands this practical guide (step-by-step) to submit an ownership request, based on the latest official data issued by the General Authority for Real Estate.

What Changed in 2026? (Summary of the New System)

The new system eliminated previous complexities and replaced them with a digital and transparent mechanism. The most important aspect of the official announcement is expanding the circle of beneficiaries to include:

• Residents (Legal Residency): They have the right to own a private residential property.
• Non-Residents (Foreigners from Abroad): They can now own property after issuing a digital ID.
• Makkah and Madinah: The system brought a qualitative update allowing non-Saudis (Muslims) to own property in the two Holy Cities according to specific controls.

Eligibility Requirements: Am I Eligible to Own?

Before you start searching for a property, ensure that the conditions apply to you to avoid rejection of the application:

For Resident Individuals:

• Holding a valid legal residency (Iqama).
• The property must not violate building regulations.
• The property must be designated for private housing (not for immediate commercial speculation).

For Non-Residents (Individual Investors):

• Obtaining initial approval and issuing a "Digital ID" via Saudi missions abroad or approved platforms.

For Foreign Companies:

• The company must have a valid investment license (via the Ministry of Investment) to practice activity in the Kingdom.

Geographic Scope: Where Can You Buy?

This point is the most critical; not all lands in the Kingdom are available for freehold ownership.

• Open Zones: Riyadh, Jeddah, Dammam, and most major cities (freehold areas).
• Makkah and Madinah: Muslims are allowed to own property in specific ranges according to the geographic zones document that will be announced in the first quarter of 2026.
• Restricted Zones: Ownership is completely prohibited in border areas, military zones, and some protected heritage sites.

Real Estate Tip: Before paying any deposit, ensure that the property is located within the (Green Zone) permitted for foreigners. We help you check the geographic location of the property to ensure it is free from legal ownership impediments.

Practical Steps: How to Apply via the Official Portal

The process is now fully digital and does not require visiting a notary public in the initial stages. Here are the steps as announced by the General Authority for Real Estate:

Step One: Access the Platform. Go to the "Saudi Properties" portal (the unified official platform) or via the "Absher" portal for electronic services (for residents).

Step Two: Identity Verification

• For Residents: Direct login via the Unified National Access (Nafath).
• For Non-Residents: Using the Digital ID that was previously issued via Saudi missions abroad.

Step Three: Submit "Ownership Approval" Request. Choose the service "Request for Non-Saudi Real Estate Ownership." You will need to enter property data (Deed Number) if you have already chosen a property, or submit a request for initial approval.

Step Four: Attach Documents

• Copy of the electronic deed of the property.
• Proof of financial solvency (may be requested in some cases).
• Passport and Residency (data is often pulled automatically).

Step Five: Fee Payment and Approval. After reviewing the request electronically (takes 3 to 10 working days depending on request volume), approval is issued. Afterwards, you can proceed to transfer the property title and pay the Real Estate Transaction Tax (5%).

Fees and Taxes to Calculate

Do not be surprised by additional costs; keep them in mind:

• Real Estate Transaction Tax (RETT): 5% of the property value (usually paid by the buyer).
• Brokerage Fees (Sa'i): 2.5% paid to the real estate office or broker.
• Administrative Fees: The platform may impose nominal fees to process the request.

How to Ensure Choosing the Right Property?

The Saudi market is now boiling with opportunities, but caution is necessary. At Skyline Holding, we advise you to:

1. Check the "Building Code": Ensure that the property in Riyadh, for example, complies with the new building code (Wadi Hanifa or Green Riyadh code) to avoid violations.
2. Fair Price: Do not get carried away by high prices due to increased demand. Compare the price per meter in the neighborhood via Real Estate Stock Exchange deals.
3. Investment Returns: If you are buying for investment purposes (where regulations allow), look for neighborhoods close to Metro projects or "Qiddiya" and "Diriyah."

Frequently Asked Questions

Can I sell the property immediately after buying it?

The system usually places time restrictions (such as 3 or 5 years) before allowing the sale of residential property to ensure it is for housing and not speculation. It is advisable to review the precise executive regulations for this condition.

Does buying property grant me Permanent Residency?

Owning property may qualify you to obtain "Premium Residency" (Property Ownership category) if the property value exceeds 4 million Riyals (according to the Premium Residency system), but ownership itself via the general system is a separate right.

What happens if I leave the Kingdom (Final Exit)?

In case of residency cancellation, the owner can sell the property, transfer its ownership, or retain it as a foreign investor. Procedures vary by case, so it is preferable to plan for this in advance.

Conclusion

The decision to allow non-Saudis to own real estate is a historic step that makes Saudi Arabia a true second home. Opportunities are promising, but they require legal knowledge and smart selection.

Are you thinking of buying your first property in Saudi Arabia? The Skyline Holding team is ready to help you choose a legal and profitable property.