The new law, approved through Royal Decree No. M/14 in July 2025, will enable international individuals and companies to purchase homes, residential land, and agricultural farms in specifically approved zones across the country.
According to the Times of India, this overhaul aims to attract global wealth, stimulate market growth, and create new employment opportunities for Saudi citizens.
“The new law actively supports Saudi Arabia’s rapid shift to economic and investment growth,” The Real Estate General Authority (REGA) stated, emphasising the creation of a secure and globally competitive regulatory environment.
Foreign investors will have access to traditional property investments as well as opportunities in mega-projects like NEOM, Qiddiya, and Red Sea Global initiatives.
The law also introduces digital fractional ownership, allowing investors to purchase tokenised stakes in real estate remotely.
The Saudi property tax system offers significant advantages for long-term investors with no annual property tax and no capital gains tax on profits from property appreciation.
However, a one-time 5% Real Estate Transaction Tax will be applied to the sale price upon ownership transfer.
While the full list of required documents is pending final release by REGA, compliance will be strictly enforced.
All transactions must be registered with the Real Estate Registry, and acquiring property through false declarations could result in fines up to SAR 10 million.
Foreign ownership will be limited in approved economic and residential zones, with total allowable purchase percentages generally capped between 70% and 90% of a development.
Special restrictions will apply to Mecca and Madinah, where ownership will be permitted only for practising Muslims and designated Saudi companies in specific urban zones.
The Zakat, Tax and Customs Authority (ZATCA) will be responsible for collecting transaction taxes, while REGA will oversee the implementation of the new regulations.
