Investing in Saudi Arabia: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Saudi Arabia.
Who can buy in Saudi Arabia
Foreign ownership runs under the Law of Real Estate Ownership by Non Saudis, gazetted in July 2025 and effective from January 2026. Non Saudis can buy within designated zones set by the Council of Ministers, expected to include parts of Riyadh and Jeddah. Foreign residents may also own one home outside those zones strictly for personal use. Makkah and Madinah remain largely closed to non Muslim buyers. GCC nationals and Premium Residency holders enjoy near parity with Saudis.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Saudi citizen | Yes | Freehold | No restriction nationwide |
| GCC national | Yes | Freehold | Broad parity with Saudi citizens for residential use |
| Foreign national, resident in Saudi Arabia | Conditional | Freehold | One residential property outside designated zones; broader rights inside zonesApproval: Real Estate General Authority registration |
| Foreign national, non resident | Conditional | Freehold within designated zones only | Makkah and Madinah remain restrictedApproval: Council of Ministers and REGA approval |
Capital gains on a sale
Saudi Arabia does not levy capital gains tax on individuals selling residential property. Instead a Real Estate Transaction Tax of 5 percent on sale value applies, paid by the seller, regardless of profit or holding period. Foreign owned companies pay 20 percent corporate income tax on real estate gains, while Saudi or GCC shareholders may face 2.5 percent Zakat instead.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any holding period, individual seller | Transaction tax, not CGT | 5 percent of sale value as RETT | NA, applied to sale price |
| First home, eligible Saudi buyer | Partial exemption | RETT waived up to a 1 million riyal cap | NA |
| Corporate seller, foreign owned | Corporate gain | 20 percent corporate income tax on the gain | No |
Laws change. Always consult a licensed real estate attorney before purchasing. Consult a qualified chartered accountant for advice specific to your tax profile. Rules change; verify with a professional before you transact.
Frequently asked questions about Saudi Arabia
With conditions. One residential property outside designated zones; broader rights inside zones
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