Buying & investing in
Saudi Arabia property
A practical, international-buyer-first resource covering eligibility, purchase steps, due diligence, costs, financing, and risk built for confident decisions, not guesswork.
All Guides
Start your research here
6 curated resources
How this guide helps
Clear decisions, fewer surprises, stronger investments
Buying property in Saudi Arabia is not a single “yes/no” question. It is a sequence of decisions. International buyers typically win by getting three things right: the ownership route, the contract, and the real-world income plan.
Important: This is educational guidance, not legal or tax advice. Rules, eligible areas, and processes can change. Before committing funds, confirm details with qualified advisors for your exact property and buyer profile.
Last updated
December 2025. Where we quote common tax rates and budgeting assumptions, they are marked as “as of” and should be verified for your exact scenario. Saudi regulations can change, and upcoming foreign ownership reforms have been announced for 2026.
Navigate
Table of contents
Personalize this guide
What are you trying to do?
Choose your primary goal and we’ll point you to the most relevant sections and resources.
Eligibility
Who can buy property in Saudi Arabia?
The right question is not “Can foreigners buy?” It is “Can I buy this property in this location, using this ownership route, for this intended use?” International buyers should treat eligibility as a checklist item, not an assumption.
Current landscape (as of Dec 2025)
- Eligibility depends on your buyer profile (individual vs entity), the asset type, and the location. Do not assume one rule fits all transactions.
- Holy cities have special restrictions. Treat Makkah and Madinah as restricted areas unless your advisor confirms a permitted structure for your specific case.
- Saudi Arabia has announced foreign ownership reforms approved in 2025 with effect expected in 2026 in designated zones. That means eligibility may expand, but the exact boundaries and mechanics are defined by regulation. Verify the latest before committing.
If residency is part of your plan, start with the Visa & Residency Guide.
Domestic buyers
Domestic buyers typically focus on financing terms, location fundamentals, and contract protections, especially on off-plan purchases. The process is often smoother when documentation and banking are local.
International buyers
International buyers usually add two layers: compliance (documentation, bank source-of-funds, legalization) and ownership routing (permitted areas and eligible buyer structures). Getting these right early prevents delays and renegotiations later.
What to verify before you reserve
Buyer eligibility
For the specific asset and location (individual vs company, residency status, permitted zones).
Intended use
Restrictions for owner-occupier, long-let, short-let, or mixed use.
Contracts and governing docs
What you will sign, the dispute process, and how changes, delays, and defects are handled.
Fit with your longer-term plan
Family relocation, business presence, and future residency goals.
If residency is part of your strategy, start with the Visa & Residency Guide.
Product choice
What to buy (ready vs off-plan and what investors should prioritize)
The decision is less about “which is cheaper” and more about risk timing. Ready property concentrates risk into today’s price; off-plan spreads risk across the construction timeline and contract quality.
Ready property (completed)
Best for: immediate use, immediate rental income, clearer inspection and quality verification.
Investor focus: net yield after fees, building management quality, and resale liquidity.
Watch-outs: hidden defects, high service charges, rules limiting short-term rentals, and unit layouts that don’t match demand.
Off-plan (under development)
Best for: staged payments, earlier entry pricing, customization, and longer time horizons.
Investor focus: delivery history, milestone-linked payments, and contract protection for delays and spec changes.
Watch-outs: vague specs, weak delay remedies, unclear handover definitions, and assumptions about rental demand.
A simple “fit” framework
Prioritize strong tenant demand, sensible fees, and professional management.
Prioritize locations with structural demand drivers and clear future infrastructure.
Prioritize usability (layout, access, amenities) and a rental plan for non-usage periods.
For demand drivers and macro context, see Vision 2030.
Process
Step-by-step buying process (international buyer flow)
A disciplined process reduces risk and increases negotiating power. The goal is to move from “interest” to “ownership” while keeping optionality until the right checks are complete.
- 1
Step 1
Pre-flight eligibility, budget, and timeline
Confirm you can own the target asset type in the target location, define your all-in budget (including buffers), and decide whether you need immediate use or can wait for delivery.
- 2
Step 2
Shortlist & compare like an investor
Compare net yield assumptions, service charges, unit layouts, and resale liquidity. Don’t just compare price per sqm. For off-plan, compare handover specs and delay remedies.
- 3
Step 3
Offer / reservation with clear conditions
If you reserve, do it with clarity: what triggers a refund, what documents you must receive, and what approvals must be verified before funds become non-refundable.
- 4
Step 4
Legal + practical due diligence
Verify title/ownership, approvals, building rules, payment protections, and the contract’s definitions of handover, defects, and remedies.
- 5
Step 5
Completion, transfer, and documentation
Execute the purchase process through the required channels. International buyers should plan extra time for bank compliance, document legalization, and cross-border transfers.
- 6
Step 6
Post-handover snagging, utilities, insurance, and property management
Inspect thoroughly, document defects, set up utilities and insurance, and put management in place if you’re renting. Investors should track income/expense monthly from day one.
Verification
Due diligence and what to verify before paying
Due diligence isn’t paperwork. It is risk pricing. Every item you verify either reduces uncertainty or gives you a negotiating point.
Legal and ownership checks
Who owns the asset today, and what exactly is being transferred.
Any restrictions tied to the property’s location, use, or buyer profile.
Encumbrances, disputes, or obligations attached to the asset (where applicable).
Contract clarity including handover definition, delay remedies, and defect obligations.
Practical checks buyers forget
Service charges including what they include, how they’re calculated, and how they can change.
Building rules including pets, rentals, renovations, and occupancy restrictions.
Handover specs including finishes, appliances, parking, storage, and what “completion” means.
Snagging plan including inspection window, defect reporting process, and timelines for fixes.
Investor lens and validating the income plan
Treat “expected rent” as a hypothesis. Validate it with conservative assumptions: vacancy, management, maintenance, and realistic leasing time. If the numbers only work under perfect conditions, it’s not an investment. It’s a bet.
Practical next step: review developer track record and build quality. Browse Developers and then compare live inventory on Properties.
Budgeting
Costs & ongoing expenses (the all-in view)
Smart investors budget in three layers: transaction costs, setup costs, and operating costs. This prevents “great deal” purchases that become expensive to hold.
Key costs to know (numbers)
RETT
5%
As of Dec 2025, the Real Estate Transaction Tax is commonly stated as 5% for many property transfers. Verify exemptions and edge cases.
VAT
15%
VAT often applies to services (brokerage, legal). Exact applicability depends on the provider and transaction type.
Broker fee
2% to 2.5%
Common budgeting assumption only. It is negotiable and can be paid by buyer or seller depending on the deal.
Interactive calculator
All-in purchase cost estimate
Adjust assumptions to match your deal. Defaults are budgeting placeholders. Verify your exact tax and fee treatment with your advisor for your specific transaction.
Example: 2000000
Estimated add ons
SAR 174,750
Taxes and fees (excluding the property price)
Estimated all in total
SAR 2,174,750
Price + selected taxes and fees
Line items
Assumptions
As of Dec 2025, RETT is commonly stated as 5% for many transactions. Confirm exemptions and treatment for your deal.
Brokerage is deal dependent and negotiable. In many markets, it is often around 2% to 2.5% (verify in your purchase agreement).
Budgeting placeholder for contract review and documentation. Many buyers budget something like SAR 5,000 to SAR 25,000+, depending on complexity and advisor. Verify scope and pricing.
As of Dec 2025, VAT is 15%. VAT treatment depends on the service provider and transaction structure.
Interactive calculator
Gross and net rental yield
Use conservative vacancy and cost assumptions. If the numbers only work with 0% vacancy, it is not robust.
Gross yield
7.20%
Annual rent divided by purchase price
Net yield
4.73%
After vacancy and operating costs
Annual model
Inputs
Next step
Browse live opportunities
Use the calculators above to sanity-check your budget, then explore listings and shortlist with confidence.
Pro tip and building a one-page “closing budget”
For every shortlisted unit, create a single-page cost sheet: price, expected rent, service charges, management, vacancy assumption, and buffer. Compare properties by net outcome, not headline price.
Financing
Financing & banking for international buyers
International buyers should plan financing around documentation and timing. Even cash buyers face banking requirements for transfers, source-of-funds, and compliance checks.
If you’re using a mortgage
Confirm lender appetite for your residency and income profile early.
Expect documentation and translations/legalization to affect timelines.
Stress-test payments for interest rate changes and currency shifts.
Align drawdowns with the contract payment schedule, especially off-plan.
If you’re buying cash
Plan transfer windows and bank compliance checks well in advance.
Build an FX strategy. Staged transfers can reduce timing risk.
Keep clean documentation for source of funds and ownership records.
Ensure your payment path matches contract protections and milestones.
Investing
Investment strategy (yield, appreciation, and exit planning)
A strong property investment is a set of probabilities in your favor. You want multiple ways to win: stable demand, reasonable costs, and a credible exit.
Buy where tenants already exist. Prioritize access, unit usability, and fees that don’t erode net returns. Underwrite vacancy realistically.
Buy ahead of durable demand drivers: infrastructure, employment hubs, and policy shifts. Avoid relying on “future hype” without a timeline.
Target assets with both rentability today and upside tomorrow. Your underwriting should still work if appreciation is slower than expected.
Exit planning (the overlooked edge)
Liquidity: Does the unit type have broad demand, or only a niche buyer?
Fee drag: Do service charges and management costs make resale harder?
Reputation: Is the building known for quality and good management?
Optionality: If needed, could you switch strategy (long-let vs furnished vs sell)?
Risk
Risk management & red flags (how to protect yourself)
The goal isn’t to eliminate risk. It is to see it early, price it correctly, and avoid “one-way doors” where your money is stuck. International buyers are safest when the contract, the payment flow, and the asset’s real-world use are aligned.
Common red flags
Reservation fees that become non-refundable before you receive key documents.
Vague handover specs or unclear defect obligations.
Promises of rent without evidence of demand, building rules, or realistic costs.
Service charges that are unknown, poorly explained, or likely to rise materially.
Pressure tactics that reduce your diligence window.
How pros reduce risk
Use a written diligence checklist and refuse to “assume” anything important.
Model downside including vacancy, fee increases, slower appreciation, and FX movement.
Choose liquid unit types in proven locations unless you have a long timeline.
Separate marketing claims from contract commitments. Only the contract matters.
Plan the exit before you buy. Who is the next buyer or tenant?
A practical protection rule
Don’t send significant funds until you can answer clearly and in writing these three questions: (1) Am I eligible to own this asset here? (2) What exactly am I buying, and what happens if delivery differs? (3) If I need to exit, who buys or rents this, and why?
Location
City & location framework (Riyadh vs Jeddah vs beyond)
Think in demand ecosystems. Cities differ in tenant profiles, seasonality, and what “good” liquidity looks like. The right city is the one that matches your strategy.
Riyadh (often business-driven)
Commonly associated with government and corporate demand. Investors often prioritize accessibility, commute patterns, and building management quality for long-let stability.
Jeddah (often lifestyle + coastal)
Lifestyle, coastal appeal, and varied tenant demand can shape strategy. Investors often weigh unit livability, community amenities, and maintenance considerations more heavily.
Destination intelligence shortcut
Use our Area Guides to compare neighborhoods and investment zones with context that brochures don’t provide.
Glossary
Key terms buyers should understand
Contracts and brochures can use familiar words to mean different things. Here are the terms that most often cause confusion for international buyers.
Off-plan
Buying a property that is under development, typically with staged payments linked to time or milestones.
Handover
The point when the developer delivers the unit to the buyer. The contract should define what “handover complete” means.
Snagging
The inspection process where defects and finish issues are documented for correction before or after handover.
Service charges
Ongoing fees for building/community maintenance and services. These materially affect net yield.
Net yield
Rental income after ongoing costs (fees, management, maintenance, vacancy), expressed as a percentage of your all-in cost.
Liquidity
How quickly and reliably you can sell (or rent) at a fair price, often driven by location and product-market fit.
Checklist
International buyer checklist (copy/paste)
Use this as a one-page workflow. If you can’t tick an item confidently, you’re not “behind”. You’ve found the next thing to verify.
Before you reserve
- Confirm the ownership route for your buyer profile and the property’s location
- Define an all-in budget (fees, setup, and operating costs)
- Choose strategy: yield, growth, or lifestyle+investment (and set time horizon)
- Validate rental assumptions with conservative vacancy and fees
Contract & due diligence
- Review contract definitions: handover, delays, spec changes, defects, remedies
- Verify approvals/permits and what exactly is being transferred
- Confirm building rules (rentals, renovations, occupancy restrictions)
- Map payment schedule to milestones (off-plan) and document protections
Completion & post-handover
- Plan banking/transfer timelines and compliance documentation
- Arrange snagging/inspection and record defects professionally
- Set up utilities, insurance, and management (if renting)
- Track monthly performance (income, costs, vacancy) from day one
FAQ
Frequently asked questions
In many cases, yes. International ownership is possible via permitted routes and in permitted areas. The key is that eligibility is often tied to who is buying (individual or company), what is being bought (unit type and use), and where it is located.
Treat “eligibility” as a pre-flight check. Before paying any reservation fee, confirm the ownership route for your exact asset and your buyer profile.
Plan for an all-in number: transaction fees, legal review, valuation/surveys (where applicable), bank fees, utilities setup, insurance, service charges, and a maintenance buffer.
Costs vary by deal type and location, so the most reliable approach is building a single-page “closing budget” for each property you shortlist, then comparing them side-by-side.
Sometimes, but don’t assume. Short-term rentals can be affected by building rules, community regulations, management policies, and local licensing requirements.
If short-term income is part of your plan, confirm it in writing before you buy and price your model conservatively in case rules tighten.
Off-plan can be excellent if you treat it like a project. Prioritize developer delivery history, check the payment schedule against construction milestones, and insist on clear handover specifications and defect obligations.
Your goal is to make the contract reflect reality: what you’re buying, when it arrives, and what happens if it doesn’t.
Liquidity is usually a function of location, product-market fit (unit size and layout that local demand actually wants), and building reputation (management, fees, and quality).
A simple test: if you had to sell within 90 days, could you price it competitively without destroying your return?
Often yes, but the practical answer depends on your transaction and your bank. Remote buying usually means being ready for stronger identity checks, clearer signing authority, and more time for document handling.
If you want to buy remotely, treat it as a project requirement. Confirm early whether you can sign digitally, whether any documents must be legalized, and what your bank will require for source of funds.
It varies, but most international buyers should plan for identity documentation, proof of funds or source of funds, and signed contracts. Some cases require certified translations or legalization.
The best approach is to ask for a document checklist before you reserve, then align it with your bank’s compliance timeline.
Continue learning
Related resources
Residency
Visa and Residency Guide
If residency is part of your plan, start here and validate the requirements early.
Macro
Vision 2030 Investment Guide
Demand drivers, giga-projects, and what policy changes can mean for buyers and investors.
Insights
Market Insights
Track policy and market shifts that can affect pricing, rents, and strategy.
Insights
Investment Tips
Practical investing guidance: underwriting, due diligence, and avoiding common mistakes.
Explore by Topic
Investment Guides
Deep-dive into specific aspects of Saudi Arabia property investment.
Next step
Build your plan with
expert guidance
Tell us your goals (yield, growth, lifestyle, or residency) and we’ll help you shortlist opportunities and avoid costly mistakes.