Last updated: July 15, 2025
Dubai: Saudi Arabia has passed the law that will allow foreign investors to acquire property – but there are specific rules they need to follow to make full use of this opportunity in a real estate market that continues to grow in easy double-digit terms.
As for the Saudi government, the next stage will see the Real Estate General Authority identify eligible areas. These would, of course, include areas and projects in Riyadh and Jeddah.
“Detailed executive regulations will be released within six months via the ‘Istitlaa’ platform for public consultation,” said Naveen Sharma, Chairman of the Taxation Society.
Saudi property: UAE, Gulf developers to enter booming market after new ownership law
Recent Saudi offplan launches, especially in super-premium ones such as the Trump Tower in Jeddah, have drawn in sizable domestic investors support. (Another two Trump-branded projects are expected to follow shortly, including another potential tower in Riyadh.)
“Two types of foreign property investors will be drawn in by this opening up – one, those with GCC-based businesses who want to add a permanent base in Saudi Arabia,” said a brokerage. “Second will be those who see the return on high investment potential in Saudi property, one that’s good for another 5-10 years.”
What foreign investors need to have
Foreigners generally need a valid residency permit (Iqama) to purchase property for residential use.
“But under the 2025 reforms, non-resident foreign investors can now acquire property in Vision 2030 mega-projects such as NEOM and Red Sea Project, without residency, provided they meet investment thresholds,” said Sharma.
Even then, foreign individuals can own only one residential property at a time. (Selling the existing property is required before purchasing another.)
Foreigners cannot purchase undeveloped land for speculation. They can acquire plots in Special Economic Zones, such as NEOM, for developments costing SR30 million plus.
Keep in mind that ‘large-scale foreign real estate projects must be developed within 5 years of purchase’, said Sharma.
“Long-term expatriates will have an opportunity to invest in homes, while companies can purchase residences for staff, reducing reliance on costly hotel accommodations.”
The property ownership does not confer residency in Saudi. A premium residency (or Saudi ‘green card’) requires higher investment or special status, with SR800,000+ as one-time fee).
What are the taxes involved on properties?
· There is a 5% RETT (Real Estate Transaction Tax), 2.5% White Land Tax, and 15% VAT on commercial leases.
· Property transfers must be formalized with the authorities, often via the Notary Public or the electronic title registry.
· The administrative fees for registering the new title are ‘relatively modest’, says Sharma. A title deed registration fee on a sale is around 1% of the property value in many cases, and there may be a small notarization fee for the sale contract documentation. (These charges are generally paid by the buyer.)
“Saudi Arabia has launched several Special Economic Zones (SEZs) and large-scale development projects to encourage international investment,” said Sharma. “These areas are designed to offer more flexible frameworks for foreign participation in real estate and related sectors.
“Foreign investors may find streamlined processes, specialized regulatory support, and potentially relaxed ownership conditions in these zones, depending on the specific project guidelines and policies.”
