Saudi Arabia Opens Property Market to Foreign Buyers With Strict Rules and New Fees
Saudi Arabia has officially released detailed rules allowing foreign citizens and organizations to buy property in the country, as part of its Vision 2030 development plan. The Real Estate General Authority (REGA) confirmed that foreign-owned properties will face a total 10% fee and tax, which will take effect from January 2026. While foreigners will be able to purchase property in major cities such as Riyadh and Jeddah, the new policy comes with strict conditions and strong legal controls.
Under the updated rules, foreign buyers must fully disclose their personal identity, ownership registration, and financial information. Saudi authorities warned that anyone attempting to buy property using false documents, hidden identity, or misleading declarations will face property confiscation, and the asset may be sold through public auction. Violations can also lead to fines reaching up to 10 million Saudi riyals, making this one of the strongest enforcement measures introduced in the real estate sector.
The new structure identifies five categories eligible to buy property, including foreign individuals, foreign companies, Saudi companies with foreign shareholders, non-profit organizations, and diplomatic missions. These buyers will be permitted to purchase residential or commercial properties only in REGA-approved areas. Officials stated that new maps and detailed zone guidelines will be issued soon for cities including Riyadh, Jeddah, Makkah, Madinah, and others, while special restrictions are expected to remain in place for holy cities.
Foreign residents already living in Saudi Arabia will be able to apply through the government online portal using their Iqama number, and in some cases, they may receive permission to buy one private home outside the designated zones for personal living. Buyers from outside Saudi Arabia, including those applying from countries like Bangladesh, must first obtain a digital ID from a Saudi embassy and then complete the application online.
Alongside the foreign ownership fee, buyers will also need to pay a real estate transaction tax of up to 5%. Property costs will depend on the city, size, and location, with estimates suggesting that apartments in Riyadh or Jeddah could range from around 10 million Bangladeshi taka for a small unit to more than 30 million taka for larger or luxury flats. Saudi officials say the main purpose of this policy is to bring transparency to the housing sector and balance foreign investment with national interest, meaning the opportunity for foreigners is available, but it will remain carefully regulated and limited through strict enforcement.
