Saudi Arabia

Foreign ownership

Non-resident foreigners may own property ONLY within zones designated by the Council of Ministers (on REGA's recommendation). Foreign RESIDENTS get an additional right: they may own ONE residential property outside the designated zones (excluding Makkah and Madinah). Ownership in Makkah and Madinah remains restricted to Muslims, under stringent conditions. The Minister of Municipalities and Housing indicated residential ownership would be opened across most Saudi cities with exceptions for four cities — Makkah, Madinah, Jeddah and Riyadh — though specific zones within them may later be designated. Foreign companies, listed entities, investment funds and SPVs have broader rights.

The zone maps and detailed implementing regulations are the operative documents, and were still being published around the law's entry into force. Anyone evaluating Saudi property must work from REGA's current published zone designations, not from the law's headline. This is a market in the first months of its existence as an open market — the rulebook is still settling.

Real Estate Transaction Tax (RETT)

Non-Saudi disposal fee (NEW)

The new law authorises REGA to levy an additional real estate transfer fee on property disposals by non-Saudis, capped at 5%. This is charged IN ADDITION to the standard 5% RETT.

Total transaction tax burden — foreign buyer

5% RETT plus the up-to-5% non-Saudi disposal fee. This makes Saudi Arabia roughly 2.5x more expensive to enter than Dubai (4% DLD fee) on transaction tax alone, before professional fees. The foreigner-specific fee is the deliberate policy lever: the market is open, but foreign capital pays a premium for access.

Gross yield range

Rental income tax

Saudi Arabia does not levy personal income tax on individuals. Note that a 5% VAT regime and zakat/corporate income tax rules apply to entities — holding property through a company changes the analysis materially.

Capital gains tax

The 5% RETT is a transaction tax on disposal, not a gains tax — it applies to the full value, not the profit. Plus the non-Saudi disposal fee.

Annual property tax

No traditional annual property tax on residential property. Ongoing costs are community service charges, typically SAR 20–80 per square metre per year (roughly SAR 2,000–7,000 annually for a standard apartment or villa, more in full-service compounds). A separate White Land Tax applies to undeveloped urban land, which is a different regime.

Residency pathway

The Real Estate Owner Premium Residency category requires owning a developed residential property worth at least SAR 4 million, free of any mortgage, appraised by TAQEEM-accredited valuers. Alternative Premium Residency routes exist that do NOT require property: an Unlimited Duration option at a one-time fee of SAR 800,000 (~USD 213,000), or an annual Limited Duration option at SAR 100,000/year.

This is the decisive number when comparing Saudi to the UAE. The UAE Golden Visa requires AED 2,000,000 (~USD 545,000) and delivers 10-year renewable residency. Saudi's property route to Premium Residency requires roughly SAR 4,000,000 (~USD 1,065,000) — nearly DOUBLE, and the property must be unmortgaged. For residency-motivated buyers, the UAE is currently far cheaper.

Non-resident mortgage

Saudi banks (SNB, Al Rajhi, Emirates NBD KSA) will generally lend to foreign RESIDENTS holding a valid iqama with stable employment, via Sharia-compliant home financing. Lending to pure non-residents — those with no Saudi residency status — remains restricted. A non-resident foreign buyer should assume a cash purchase.