Saudi Arabia amends foreign property ownership model

In January 2026, Saudi Arabia permitted foreigners to own land within the country for investment purposes under certain regulations. This month i.e. in August 2026, the kingdom announced some updates to the property ownership model for foreigners.

The country’s Real Estate General Authority (REGA), which manages the Saudi Properties platform has enabled digital maps on the platform that allows foreign buyers to physically screen approved geographic zones, see exact ownership caps per neighborhood, and verify specific duration limits through the digital platform. Saudi Properties is the official national digital gateway for all foreign individuals and corporate entities wishing to buy real estate in Saudi Arabia.

In addition to the digital maps, foreign corporations and non-profits investing in the country are now required to report explicitly both direct and indirect owners or controllers of real estate in Saudi Arabia to REGA. Furthermore, sudden changes in corporate ownership must be reported to REGA in narrow timelines.

Furthermore, while the Real Estate Transaction Tax (RETT) remains at 5%, a separate 2% metropolitan disposal fee will be applicable for specific foreign real estate transfers in major cities Riyadh, Jeddah, Makkah, and Madinah. This 2% fee may be exempt under certain conditions and so should not be lumped with the 5% RETT.