Saudi Arabia Non‑Saudi Real Estate Law: Expat Property Ownership, Fees & Restrictions
Category:
Saudi Arabia
Non‑Saudi residents—including expatriates, foreign companies, and nonprofits—can now legally own property in designated regions of Saudi Arabia under the Real Estate Ownership Law. This shift opens new investment and living opportunities, though strict rules and restrictions still apply.
Overview of the New Real Estate Law for Non‑Saudis
The 15‑article law replaces the 2000 legislation and becomes enforceable 180 days after publication in the official gazette. Read more here.
- Land ownership limited to government‑designated zones
- Registration with the Real Estate General Authority (REGA) is mandatory Details here
- Property rights defined and capped per region
- Ownership rights granted to legal foreign residents outside restricted zones, with exceptions in Makkah and Madinah, which remain limited to Muslim non‑Saudis Learn more
Ownership & Restrictions by Article
Article 2 – General Ownership Rules
- Non‑Saudis can buy or lease property only in government‑approved zones.
- Authorities define the regions, property types, ownership caps, and lease durations.
- Legal expats may own one residential property outside restricted zones—excluding Makkah and Madinah.
- Only Muslim non‑Saudis may own property in Makkah and Madinah.
Articles 3 & 4 – Foreign Entities & Listed Funds
- Foreign‑owned Saudi companies may own property, including in Makkah and Madinah, if compliant with regulations.
- Publicly listed companies and licensed real estate funds can invest freely anywhere in Saudi Arabia under market rules.
Article 8 – Registration Requirement
- Ownership is valid only after proper registration with the Real Estate Register via REGA.
Article 9 – Transfer/Disposal Fees
- Non‑Saudi sellers or transferors must pay up to 5% disposal fee on property value.
Article 10 & 12 – Penalties for Violations
- Penalties include warnings, fines of up to 5% value or SR 10 million, forced sale, or nullification of ownership.
- Providing false information may result in forced sale and financial recovery limited to original purchase or net resale value.
Article 11 – Enforcement & Appeals
- Legal expert committees handle violations. Appeals may be filed within 60 days to court.
Practical Considerations & Related Policies
- Premium Residency: Foreign property owners—residents or investors—may qualify for Saudi Premium Residency, enabling property ownership without a sponsor. Fees: SAR 800,000 for permanent, SAR 100,000/year for renewable residency.
- Saudi REITs & Companies: Foreign real estate investment via publicly listed funds or companies is permitted and often more flexible compared to direct ownership.
- Other Laws: This law aligns with the Premium Residency Law, GCC rights, and does not override any more favorable regulations.
- Contract enforcement still follows Sharia‑based legal practices.
Related Resources
For further reading on expat property ownership, check this recent guide on renting vs buying property in Saudi Arabia, which covers REITs, company ownership options, and regulations in Mecca and Medina.
Conclusion
This law marks a significant milestone in the liberalization of Saudi Arabia’s real estate market under Vision 2030, enabling broader access for non‑Saudi investors and residents—while preserving religious and strategic protections in the holy cities.
05 Aug, 2025
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