Non‑Saudi nationals and entities may own only registered properties in the Kingdom, and must disclose all required information under REGA’s implementing rules. The updated Law of Real Estate Ownership by Non‑Saudis — approved July 2025 and effective January 2026 — introduces fees, zones, and penalties, including fines up to SAR 10 million for violations.

The Updated Law and Effective Date

The Kingdom approved the updated Law of Real Estate Ownership by Non‑Saudis in July 2025; the law takes effect on January 1, 2026. The law permits ownership within designated geographic zones and requires registration through the Real Estate General Authority (REGA).

Major features

• Mandatory registration of property purchases and rights for non‑Saudis.

• Imposition of fees and taxes (amounting in practice to around 10% when combined with other transaction costs).

• Fines for regulatory violations reaching up to SAR 10,000,000.

• Properties acquired using misleading or false information are subject to sale by public auction.

Who Qualifies to Own?

The law recognises five categories of non‑Saudi owners:

1. Non‑Saudi individuals
2. Non‑Saudi companies
3. Saudi companies in which a foreigner has a share of ownership
4. Non‑profit entities
5. Diplomatic missions

Geographic Zones, Rights and Restrictions

REGA will publish a detailed zoning document that identifies permitted ownership zones in major cities (including Riyadh, Jeddah, Makkah and Madinah) and other governorates. The document will include maps, permitted ownership percentages, allowed types of rights (ownership, leasehold, usufruct), and any grace periods or transitional rules.

Note: Special rules continue to apply in the holy cities of Makkah and Madinah where ownership by non‑Saudis is subject to tighter restrictions.

Registration & Compliance Requirements

Registration is mandatory

All property transactions and acquisitions of rights by non‑Saudis must be registered in the official Real Estate Registry administered by REGA to be legally valid.

Disclosure of data

Applicants must disclose all data and information required by the regulations. Failure to disclose accurate information may result in fines or the annulment of ownership rights.

Fees, taxes & penalties

The updated law imposes a mix of fees and taxes on non‑Saudi transactions. In addition to the real estate transaction tax and other charges, serious violations can attract fines up to SAR 10 million and the sale of properties at public auction when acquired through misleading information.

Implications for Investors and Residents

For foreign individuals

Individuals must ensure purchases are made within permitted zones (or comply with special authorisations), register the property with REGA, and fulfil disclosure obligations under the law.

For companies and joint entities

Foreign companies and Saudi companies with foreign shareholders are eligible under defined conditions but must follow the same registration, zoning and disclosure rules.

Alignment with Vision 2030

The reform supports Saudi Arabia’s Vision 2030 objective to boost foreign investment and diversify the economy, while maintaining regulatory oversight to protect national interests.

What to Watch & Next Steps

• Monitor REGA’s publication of the detailed geographical zoning document and the executive regulations.

• Confirm registration procedures and required documentation before completing any transaction.

• Seek professional advice on tax and fee implications for specific transactions.