On 22 January 2026 (3 Sha’ban 1447 AH), Saudi Arabia’s Real Estate Ownership System for Non-Saudi Nationals entered into force, replacing a restrictive, purpose-based regime with a zoning-driven framework administered by the Real Estate General Authority (REGA). For the first time, non-Saudi individuals and companies have a structured, digital path to own property in the Kingdom outside the narrow exceptions that used to apply.
This is a regulatory change, not a tax change — and that distinction matters more than most coverage of the law makes clear. Here’s what actually changed, who it applies to, and what it does and doesn’t mean for Real Estate Transaction Tax.
What the New System Actually Does
REGA’s own announcement describes the change as the “Real Estate Ownership System for Non-Saudi Nationals” entering into force, administered through a new official digital portal called Saudi Properties (saudiproperties.rega.gov.sa). Three categories of applicant can use it:
- Non-Saudi residents inside the Kingdom — verified through their Iqama (residency permit) number
- Non-residents — verified through Saudi embassy or representation digital identity
- Non-Saudi companies and entities — which must first register with the Ministry of Investment before applying for real estate ownership
This replaces the older, more restrictive framework where non-Saudi ownership was tied to specific, narrow purposes and required case-by-case approvals. The new system is zoning-based: ownership eligibility depends on where the property sits, not on justifying a specific business or residency purpose each time.
Where It Applies — and the Holy Cities Exception
At launch, REGA confirmed the system regulates ownership in four cities specifically: Riyadh, Jeddah, Makkah, and Madinah. For the two holy cities, REGA was explicit and narrow. In its own words:
“Ownership in the two holy cities is restricted to Saudi companies and Muslim individuals, whether residing inside or outside the Kingdom.”
That is a narrower restriction than a blanket “no foreign ownership” rule — a non-Saudi Muslim individual is not excluded in the two holy cities the way a non-Muslim foreign buyer is. This nuance is frequently flattened in secondary coverage to a simple “foreigners can’t buy in Makkah and Madinah,” which is not precisely what REGA stated.
REGA also indicated that a fuller “Geographical Zones Document” — clarifying regional restrictions and permissions across the rest of the Kingdom beyond the four launch cities — was expected during Q1 2026. Legal trackers covering the rollout report that the Council of Ministers approved the Implementing Regulations and endorsed the designated geographic areas on 23 June 2026, extending clarity nationwide beyond the initial four-city scope. Given the pace of rollout, the current authoritative zone list should always be checked directly on the Saudi Properties portal rather than assumed from any single article, including this one.
This Is an Ownership Law, Not a Tax Law
The Real Estate Ownership System for Non-Saudi Nationals is administered by REGA and governs who is eligible to hold title to property in the Kingdom. It is separate from Real Estate Transaction Tax (RETT), which is administered by ZATCA and governs what tax is due when a property changes hands.
Nothing in REGA’s published material about the ownership law changes the RETT rate or introduces a nationality-based RETT surcharge. A transaction that is eligible to proceed under the new ownership system is, on current published information, subject to RETT on the same basis as any other disposal of real estate — the standard rate applies to the transaction itself, and any RETT exemption a buyer might otherwise qualify for (first-home support, corporate restructuring, and so on) is assessed under RETT’s own separate rules, not under the ownership law.
Being eligible to own property under the new REGA system does not automatically mean a foreign buyer qualifies for RETT exemptions designed around Saudi residency, first-home status, or other RETT-specific conditions. Ownership eligibility and RETT treatment should be checked as two separate questions, not assumed to move together.
How the Application Process Works
Applications run entirely through the Saudi Properties portal rather than a paper-based or in-person process. A non-Saudi individual identifies themselves via Iqama number (if resident) or through their Saudi embassy’s digital identity system (if non-resident). A non-Saudi company must complete Ministry of Investment registration first — the ownership application is not a substitute for standard foreign investment licensing, it sits on top of it.
Because the geographic zone framework is still being finalized city by city and region by region, the practical first step for any prospective buyer or their advisor is confirming, on the portal itself, whether the specific property’s location currently falls inside an eligible zone — before progressing to a purchase agreement or engaging a RETT assessment.
Frequently Asked Questions
22 January 2026 (3 Sha’ban 1447 AH), when the Real Estate Ownership System for Non-Saudi Nationals entered into force, according to the Real Estate General Authority (REGA).
Ownership in the two holy cities is restricted to Saudi companies and Muslim individuals, whether residing inside or outside the Kingdom, per REGA’s own statement. This is narrower than a blanket ban on all non-Saudi ownership.
A non-Saudi company must first register with the Ministry of Investment, then apply through the official Saudi Properties portal (saudiproperties.rega.gov.sa). Ownership eligibility is assessed on top of standard foreign investment registration, not instead of it.
No. The ownership law is administered by REGA and governs who can hold title; RETT is administered by ZATCA and governs the tax due on the transaction. Nothing in REGA’s published material introduces a nationality-based RETT rate change.
At launch, REGA named Riyadh, Jeddah, Makkah, and Madinah specifically. A fuller Geographical Zones Document covering the rest of the Kingdom was expected in Q1 2026, with legal trackers reporting Council of Ministers approval of nationwide implementing regulations on 23 June 2026.
No. RETT exemptions (such as first-home support) are assessed under RETT’s own separate conditions, which are not the same as REGA’s ownership eligibility criteria. The two should be checked independently.
- The Real Estate Ownership System for Non-Saudi Nationals entered into force 22 January 2026, replacing a purpose-based approval regime with a zoning-based framework run through the Saudi Properties portal.
- Ownership in Makkah and Madinah is restricted to Saudi companies and Muslim individuals — a narrower rule than a blanket foreign-ownership ban, per REGA’s own wording.
- Non-Saudi companies must complete Ministry of Investment registration before applying for real estate ownership; the ownership system doesn’t replace that requirement.
- This is an ownership-eligibility law administered by REGA, separate from RETT, which is administered by ZATCA — nothing published changes the RETT rate for foreign buyers.
- The full nationwide zone map was still being finalized through 2026; always confirm a specific property’s eligibility directly on the Saudi Properties portal.
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Sources
- REGA — Non-Saudi Property Ownership System Enters into Force — official announcement, effective date and scope
- REGA — The Updated Law of Real Estate Ownership by Non-Saudis — official law page
- Saudi Properties Portal — official application portal
- White & Case — Saudi Arabia Approves Landmark Real Estate Ownership Law — legal tracker on Implementing Regulations timeline
This article is based on the Real Estate General Authority’s (REGA) official announcement and law page regarding the Real Estate Ownership System for Non-Saudi Nationals, effective 22 January 2026, cross-checked against independent legal trackers for the subsequent Implementing Regulations timeline. It does not constitute legal, investment, or tax advice. Geographic zone eligibility changes over time — confirm current status directly on the Saudi Properties portal, and confirm RETT treatment separately with ZATCA or a licensed advisor, before relying on this article for a transaction. dariba.co is an independent platform with no consulting relationships.