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Legal Framework
Royal Decree M/14 — Now in force
Legal landscape
Eligibility, zones, and ownership structure
Here is the practical picture for a foreign buyer — who can own, where, and how — under the published Non-Saudi Real Estate Ownership Law and the official Saudi Properties portal.
The law defines six eligible categories: residents (valid residency or Premium Residency), Premium Residency holders, non-resident individuals (via a Digital Identity), GCC nationals, other designated legal persons, and non-Saudi companies and non-profit entities. Each follows its own geographic scope and requirements.
Your rights depend on the official geographic zone published on the Saudi Properties portal: inside an approved zone, full ownership is available; outside it, specific rights apply. Riyadh and Jeddah have defined zones with no religious restriction; Makkah and Madinah are Muslim-only under a special framework.
For Muslims of all nationalities, ownership in Makkah and Madinah is now possible: full ownership inside the approved geographic zone, or a usufruct right outside it for Premium Residency holders. Foreign companies and non-profit entities are excluded from the holy cities entirely.
Individuals own directly. Foreign companies must register with the Ministry of Investment (disclosing direct and indirect owners) and may own only outside Makkah and Madinah; the only corporate route into the holy cities is a Saudi-listed real estate company or fund within the Capital Market Authority caps.
What to verify
What every foreign buyer should know
The law defines six eligible buyer categories: residents, Premium Residency holders, non-resident individuals, GCC nationals, other designated legal persons, and non-Saudi companies and non-profit entities.
In Makkah and Madinah, ownership is restricted to Muslims of all nationalities — full ownership inside the approved zone, or usufruct outside it for Premium Residency holders.
Non-resident individuals must obtain a Digital Identity (via a Saudi diplomatic mission), open a Saudi bank account, and get a Saudi contact number before owning.
Buyers pay a 5% Real Estate Transaction Tax (RETT), plus a non-Saudi ownership fee of up to 5% — confirm current rates and who bears them in your contract.
Your right (full ownership vs. usufruct) depends on the property's official geographic zone — verify it on the Saudi Properties portal before you commit.
Applications, eligibility verification, and title registration run through the Saudi Properties portal (saudiproperties.rega.gov.sa) and the Real Estate Registry.
How to buy
From choosing a property to holding the title deed
Prepare your basics: residents confirm a valid residency or Premium Residency; non-residents obtain a Digital Identity (via a Saudi diplomatic mission), open a Saudi bank account, and get a Saudi contact number.
Choose a property and confirm it falls within an approved geographic zone — this determines whether you receive full ownership or a usufruct right.
Register and log in to the Saudi Properties portal (saudiproperties.rega.gov.sa).
Complete the eligibility verification service and obtain your Eligibility Certificate.
Reserve the unit and sign the Sale and Purchase Agreement (SPA); for off-plan, pay the down payment and installments tied to WAFI construction milestones.
Pay the due fees and taxes — 5% RETT and the non-Saudi ownership fee — by electronic payment.
Complete the electronic transfer (Ifraagh) and register the title deed (Sak) in the Real Estate Registry, then take possession.
For off-plan property, reservation to title typically takes 12–36 months depending on the delivery phase.
Paperwork
Have these ready for a smooth purchase
Regulatory Framework Developments
The official maps confirming exactly which areas fall inside the approved geographic zones are being finalised. Register with Makan360 to receive updates on zone confirmations and new opportunities as they become available.
Advisory
Before making any property investment in Saudi Arabia, we strongly recommend:
Consulting with a Saudi-licensed legal professional on ownership regulations
Verifying current eligibility requirements with relevant authorities
Understanding any restrictions or conditions attached to foreign ownership
Conducting thorough due diligence on any specific property
Disclaimer: Makan360 is a REGA-licensed real estate sales and marketing company (CR No. 7052687345, FAL No. 1200047043). Information on this site is provided for general guidance only and does not constitute legal, tax, or investment advice. Foreign property ownership regulations in Saudi Arabia continue to evolve. Always consult qualified professionals licensed in Saudi Arabia before making property or investment decisions.