Buying guide
How overseas buyers buy property in Saudi Arabia
What to know first
- Landmark 2025 Real Estate Law opened property ownership to foreign individuals and companies nationwide, effective January 2026 — a first for the Kingdom
- SAR pegged to USD at 3.75 since 1986 — one of the longest-standing currency pegs in the region
- 0% personal income tax and no annual property tax
- Vision 2030 diversification driving non-oil GDP growth of 4.2% in 2024, projected 3.4% in 2025 (IMF)
- Riyadh Expo 2030 and giga-projects (NEOM, Roshn, Qiddiya) driving sustained infrastructure investment
The general process
- Confirm what foreigners may own in Saudi Arabia and in which areas.
- Set your budget in SAR, including taxes, fees and currency costs.
- Shortlist areas and check the developer or seller.
- Appoint an independent local lawyer before paying anything substantial.
- Reserve, sign the contract, and pay through the approved channel.
- Complete registration, and take tax advice in both countries on any rent or sale.
The exact steps and order differ by country and by project.
Financing for foreign buyers
- Maximum loan to value
- Limited for non-resident foreigners — mortgage access is still developing following the 2025/2026 ownership reform
- Typical rate
- SAMA policy rate 4.50% (repo, Aug 2026) + bank margin
- Notes
- SAMA rates track the US Fed closely due to the SAR/USD peg; most foreign buyers to date have purchased in cash, with bank financing expected to widen as the new ownership law beds in
Residency through property
- Programme
- Premium Residency (Iqama Mumayyazah) / new property-linked residency
- Threshold
- SAR 4M+ property investment (indicative, Premium Residency route)
- Timeframe
- Long-term, renewable residency without a local sponsor or employer
Taxes and running costs
- Income tax on rent
- 0% personal income tax
- Capital gains tax
- No standalone CGT — property transfers fall under RETT instead
- Transfer tax or fees
- 5% Real Estate Transaction Tax (RETT, since April 2025) — non-Saudi buyers may face an additional foreign-ownership-related fee, bringing total government charges toward ~10%
- Annual property costs
- No annual property tax; 15% VAT applies to related professional services (brokerage, legal, valuation), not the property transfer itself
See the full Saudi Arabia market guide, or ask an adviser a specific question.
Saudi Arabia's foreign property ownership framework changed materially in 2025/2026 — rules, fees and financing access are still evolving. Consult a Saudi-licensed legal/tax advisor before investing. General information, not legal, tax or financial advice.