Property in Saudi Arabia: how foreigners buy real estate, off-plan and resale

Off-plan

Off-plan property in Saudi Arabia

Off-plan sales are regulated by the Real Estate General Authority (REGA) through the Wafi program, under the Implementing Regulations of the Off-Plan Sale and Lease of Real Estate Projects Law. For a foreign buyer the project must also sit inside a designated zone.

• A developer must hold an off-plan sales license from REGA before selling units or collecting any money.
• Each project must have its own escrow account in Saudi riyals, and withdrawals require approval by the project's engineering consultant and chartered accountant.
• During the marketing phase before a full sales license, reservation payments are limited to 5% of the unit value.
• Payment plans are commonly staged against construction progress, with exact schedules set in the Wafi-licensed sale contract.
• You can check that a project is Wafi-licensed on REGA's Wafi platform before paying anything.
• Confirm that the project sits inside a designated zone, because non-residents cannot own outside them.

Secondary market

Resale property in Saudi Arabia

A resale purchase means buying a home that is already registered in the Real Estate Registry. The buyer must be eligible for that location: non-residents only within designated zones, residents also for one home outside them.

• Confirm the unit or plot is inside a designated zone, or qualifies as a resident's single home outside the zones.
• Check for clean title and any registered mortgages in the Real Estate Registry.
• Use a REGA-licensed broker; commission is 2.5% of the price unless agreed otherwise in writing.
• The 5% Real Estate Transaction Tax must be paid to ZATCA before the notary transfer.
• Apply through the Saudi Properties portal; companies must register with the Ministry of Investment first.
• In Riyadh, a five-year rent freeze from 25 September 2025 limits rent increases on existing leases, which matters for buy-to-let numbers.

Buying costs in Saudi Arabia

Real Estate Transaction Tax (RETT)

5% of the sale value. The seller is primarily liable but the parties may agree that the buyer bears it. Implementing regulations were updated with effect from April 2025.

Non-Saudi disposal fee

REGA charges a fee of up to 5% on dispositions involving non-Saudis, on top of RETT, for a combined total of up to 10%.

Brokerage

2.5% of the sale price under the Real Estate Brokerage Law unless the parties agree otherwise in writing, payable by the party that signed the brokerage contract.

VAT

Sales of real estate are exempt from VAT. Commercial leasing is subject to 15% VAT and residential rental is exempt.

The exact non-Saudi fee set under the June 2026 Executive Regulation was not confirmed in a primary source; budget for up to 5% on top of RETT.

Residency through property in Saudi Arabia

Premium Residency has a Real Estate Owner category. It requires ownership of developed residential property worth at least SAR 4 million, free of any mortgage; undeveloped land does not qualify. The residency lasts as long as the qualifying property is held.

Under the 2026 ownership regulation, Premium Residency holders may also own one residential property outside the designated zones (not in Makkah or Madinah), in addition to property inside the zones.