Saudi Is Implementing New Property Ownership Laws

The Real Estate General Authority (REGA) has announced new regulations governing foreign ownership of property in Saudi Arabia, set to take effect January 2026.

Under the updated law, foreigners will only be allowed to own registered properties and must provide full disclosure of all required information

The law, part of the Law of Real Estate Ownership by Non-Saudis approved in July, introduces a 10% combined fee and tax on foreign-owned properties. Strict penalties will apply for violations, including fines of up to SR10 million and public auctions of properties purchased with false information.

The law allows five categories of non-Saudis to buy property:

• Foreign individuals

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• Foreign companies

• Saudi companies with foreign shareholders

• Non-profit entities

• Diplomatic missions

Ownership Zones & Guidelines

REGA will soon release detailed maps and guidelines outlining permissible property types, ownership percentages, grace periods, and procedural rules. These will cover major cities such as Riyadh, Jeddah, Makkah, Madinah, and other governorates.

Foreigners and foreign companies will be allowed to purchase property for residential or business use within designated zones. However, all ownership will remain subject to fees, restrictions, and regulatory procedures set out in the law’s executive regulations.

This move aims to streamline foreign property ownership, ensure market transparency, and protect the Kingdom’s real estate sector while continuing to welcome legitimate foreign investment.