New Saudi rules limit foreign property ownership from 2026

Dubai: Foreigners in Saudi Arabia will be allowed to own only registered properties and must disclose all required information under new real estate ownership rules set to take effect January 2026, the Real Estate General Authority (REGA) said.

10% combined fees and strict penalties

The updated law, part of the Law of Real Estate Ownership by Non-Saudis approved in July, introduces a combined 10 percent in fees and taxes on foreign ownership. Violations could result in fines of up to SR10 million, and properties bought through false information will be auctioned publicly.

Who can own property

Five categories of non-Saudis will be eligible:

• Foreign individuals

• Foreign companies

• Saudi companies with foreign shareholders

• Non-profit entities

• Diplomatic missions

Ownership zones and regulations

REGA is expected to publish detailed maps and guidelines soon, covering cities such as Riyadh, Jeddah, Makkah, Madinah, and other governorates. These will specify permissible ownership percentages, property types, grace periods, and procedural rules.

Foreigners and foreign companies may buy property for residential or business use in designated zones, but ownership will remain subject to fees, restrictions, and regulatory procedures outlined in the law’s executive regulations.