Can foreigners buy property in Saudi Arabia? A guide for UK buyers.

The short answer. If you are a UK or other non-Saudi buyer looking at a new apartment or villa in Riyadh or Jeddah, the route to ownership now exists in law. The property needs to sit within a zone designated for foreign ownership, the purchase needs to be registered correctly, and the usual taxes and fees apply. Makkah and Madinah are treated differently and are subject to special conditions.

That is a significant change. For most of the past quarter-century, foreign individuals who did not live in the Kingdom had almost no way to own residential property in their own name.

It also means much of what you will read online is out of date. Guides written before 2025 often say that a foreigner must hold a Saudi residence permit to buy, or that ownership is limited to a single home for personal use. Those statements described the old rules. Equally, some recent articles overstate the new law, suggesting foreigners can buy anywhere. The accurate position sits between the two, and it depends on the zone, the buyer and the implementing regulations in force at the time.

Before the new law. Under the earlier framework, introduced in 2000, foreign ownership was narrow. A foreign resident could, with official approval, own a home for their own use. A licensed foreign business could own property needed for its activities. GCC nationals had wider rights under separate rules. A non-resident individual buying an investment apartment was not, in practice, catered for. In 2019 the Premium Residency programme opened another door, giving holders rights that include owning residential property.

The 2025 law. In 2025 the Saudi Council of Ministers approved a new law governing real estate ownership by non-Saudis. It takes effect in 2026. In outline, it:

• allows non-Saudi individuals, companies and other entities to own real estate within designated geographic zones;
• provides for zones in Riyadh and Jeddah, with the General Authority for Real Estate responsible for defining and publishing them;
• sets special conditions for ownership in Makkah and Madinah;
• requires foreign ownership to be registered through the official real estate registry;
• leaves detailed rules on eligibility, fees and procedures to implementing regulations.

Implementing regulations are where much of the practical detail sits, and they can be refined after a law comes into force. We track them closely. Before you reserve any unit, our desk confirms that it lies within a designated zone and that you, or your purchasing entity, meet the current requirements.

Riyadh, Jeddah, Makkah and Madinah. Riyadh and Jeddah are the focus for foreign buyers. Both have zones designated under the new framework, and both are where the international branded residences we offer are located. The zones are mapped by the authorities, and not every district in either city is included, so location within the city matters as much as the city itself.

Makkah and Madinah, the two holy cities, have always been subject to strict limits on ownership. The new law keeps special conditions for both. We do not sell property in either city, and anyone with an interest there should take specialist advice. Other areas, such as the large state-backed projects on the Red Sea coast or at NEOM, may operate under their own arrangements. We focus on Riyadh and Jeddah because the framework for foreign buyers there is clearest.

Premium Residency is a long-term residence programme administered by the Premium Residency Center. It does not depend on employment or a local sponsor. Holders can live, work and own property in the Kingdom, bring family members and travel in and out freely.

The programme now has several routes. Alongside the original unlimited and limited-duration options, the 2024 expansion added categories for special talent, gifted individuals, investors, entrepreneurs and real estate owners. The real estate owner route grants residence linked to owning qualifying residential property. Conditions have covered the value of the property, its completion and the absence of a mortgage, and residence depends on keeping the property.

For off-plan buyers, timing matters. A unit under construction may not qualify until it is handed over and registered. If residency is part of your plan, tell us early, and our desk will confirm the current conditions, thresholds and fees so we can match you with suitable stock.

Older guides often quote specific fees and property values for each route. Those figures have changed before and may change again, so we do not repeat them here. Our desk confirms the current thresholds for your circumstances.

The case for buying rests on structural change rather than short-term price moves. The points below explain the interest; they are not a promise of returns.

Value relative to more established markets. Saudi Arabia has only recently opened to foreign buyers, so international demand is at an earlier stage than in some other Gulf markets. Whether a particular unit is good value depends on its price against comparable sales, which our desk checks for each property.

Infrastructure. The Riyadh Metro has opened, King Salman Park and Diriyah are being developed, Jeddah is investing in its waterfront and historic core, and Riyadh will host Expo 2030, with the FIFA World Cup following in 2034.

Economic change. Vision 2030, launched in 2016, aims to diversify the economy away from oil, and government policy now favours international companies that base their regional headquarters in the Kingdom, many of them in Riyadh. That brings senior staff who need good housing.

Tax. Saudi Arabia does not levy personal income tax on salaries. Rental income and gains are another matter: their local treatment depends on your circumstances, and UK residents remain taxable in the UK on worldwide income and gains, so take advice. These drivers come with policy, supply and currency risks, covered below. Our property market outlook sets out the wider picture.

The steps are broadly similar to other markets, with a few checks specific to Saudi Arabia.

• Choose the right location. Select a property in a zone designated for foreign ownership in Riyadh or Jeddah. Location within the city matters, because not every district is included.
• Confirm eligibility. Our desk confirms that the unit lies within a designated zone and that you, or your purchasing entity, meet the current requirements.
• Check the project. For off-plan stock, confirm the developer's Wafi licence and escrow account, and review its delivery record.
• Reserve. Sign a reservation form and pay a deposit to secure the unit.
• Legal review. An independent lawyer reviews the sale contract, including payment terms, delay provisions and specification.
• Pay into escrow. Instalments follow the agreed schedule into the project escrow account.
• Handover and registration. Settle the balance and transaction costs, and register ownership through the official real estate registry.
• Residency, if relevant. A Premium Residency application under the real estate owner route usually follows registration.

Off-plan protections under Wafi. Most new homes sold to foreign buyers are off-plan. Saudi Arabia regulates these sales through the Wafi programme. Developers must obtain a licence for each off-plan project, and buyer payments go into a dedicated escrow account. Funds are released to the developer in stages as an independent engineering consultant certifies construction progress.

This structure gives foreign buyers meaningful protection, because the developer cannot simply spend deposits elsewhere. It does not remove all risk. Projects can still be delayed, and specifications can change within the contract's limits. We check every project's Wafi licence and escrow details and review the contract terms on delay and variation. You can see our current selection on the Saudi Arabia off-plan property page.

On finance, older guidance says foreigners must buy in cash. In practice most overseas buyers fund a purchase through cash, a developer payment plan or borrowing raised at home, because Saudi banks lend mainly to residents. Our buying guide for UK investors sets out each step in detail, and our finance guide explains how overseas buyers fund a purchase.

Costs and tax. A foreign buyer should budget for the following.

• Real Estate Transaction Tax. RETT of 5% applies to most transfers of real estate. The seller is liable by default, though the contract can allocate it to the buyer.
• VAT. Since 2020, RETT has replaced VAT on most real estate sales. VAT can still apply to some related services.
• Registration. Fees apply to registering title, and the implementing regulations for foreign ownership may set further charges. Our desk confirms them for each purchase.
• Holding costs. Service charges, utilities and, if you let the property, management fees.
• Home country tax. UK residents are generally taxed on worldwide income and gains, so rental income and any profit on sale may be taxable in the UK. The UK and Saudi Arabia have a double taxation agreement, and you should take UK tax advice.

Saudi Arabia does not levy personal income tax on salaries. How rental income from your unit is treated in both countries depends on your circumstances, so we always recommend advice from a qualified adviser.

Other considerations. The framework is new, and implementing rules on zones, registration and fees can be refined in its first years. The resale market for foreign-owned branded units is still forming, so plan to hold for the medium to long term. The riyal is pegged to the US dollar, which exposes a UK buyer to sterling against the dollar. Legal and business practice also differs from the UK, so independent local legal advice is essential.

To check the position for a specific property or for your own circumstances, book a consultation with our Saudi desk, or start with our Saudi Arabia overview.