Implementing Regulations to the Non-Saudi Real Estate Ownership Law

Saudi Arabia has issued the Implementing Regulations to the Law of Real Estate Ownership by Non-Saudis, formally published on 3 July 2026 (with the Council of Ministers approval on 23 June 2026). The Regulations introduce pre-acquisition registration and disclosure obligations, a non-Saudi ownership fee of up to 2% on disposals of real rights within four designated cities, and a structured penalties framework, administered primarily by the Real Estate General Authority (“REGA”). The underlying Law took effect 22 January 2026, replacing the previous regime under Royal Decree No. M/15 dated 17/4/1421H (19 July 2000).

In a nutshell, these new Implementing Regulation will be of most interest to non-Saudi persons and/or foreign companies looking to acquire land in the Kingdom.

Key Provisions 

Scope of Real Estate Ownership

1. “Non-Saudi” broadly covers: (1) a natural person who does not hold Saudi nationality; (2) a non-Saudi company; (3) a non-Saudi non-profit entity; and (4) any other non-Saudi legal person determined by a Council of Ministers resolution. 
2. Non-Saudis may own real estate or acquire rights in rem within the geographic area determined by the Council of Ministers.
3. Ownership in Makkah and Madinah is restricted to Muslim natural persons. 
4. Unlisted Saudi companies with foreign shareholding may own real estate within the geographic scope, including Makkah and Madinah, without Ministry of Investment approval.
5. Outside the geographic scope, such companies may own property for business operations or employee housing, subject to prior Ministry of Investment approval.

Registration and Disclosure Obligations for Non-Residents

• A non-Saudi company must register with the Ministry of Investment, and a non-Saudi non-profit entity must register with the National Center for the Development of the Non-Profit Sector (disclosing direct and indirect controllers). The legal representative must have a Saudi-issued identity and a Saudi bank account before acquiring real rights. 
• A non-resident natural person must obtain a digital identity, open a Saudi bank account, and obtain a Saudi mobile number linked to that identity.

Fee Rates

The Law sets a statutory ceiling of no more than 5% of the value of a disposition of rights in rem by a non-Saudi. The applied rate under the published Regulations is 2% of transaction value, limited to disposals within four cities — Riyadh, Makkah, Al-Madinah, and Jeddah Governorate — covering all types of real rights and uses. 

Impact on Taxes 

The new non-Saudi ownership fee (2% within the four cities, capped at 5%) is a third, entirely separate charge from Real Estate Transaction Tax (“RETT”) and Value Added Tax (“VAT”). The Non-Saudi Real Estate Ownership legislation does not explicitly address other taxes — however these continue to be governed by ZATCA's existing framework.

Clients should note that RETT at 5% continues to apply to transactions that transfer ownership of the real estate or transfer its benefit permanently - directly or indirectly or transfers its benefit for a period exceeding (50 years). VAT at 15% continues to apply to commercial rents, while residential rents remain exempt. The sale of real estate is exempt from VAT and subject to the RETT at 5%.

Zero-Rate Cases

The following disposals are subject to a 0% ownership fee:

1. Disposals of real in rem over real estate located outside the four designated cities.
2. Inheritance, expropriation for public interest, or disposals under a final judicial ruling.
3. Disposal to a waqf or a public legal person.
4. Return of property to the original non-Saudi owner within 180 days, with no change in description or consideration.
5. Division of jointly-held property among co-owners, provided no party's share increases.
6. Disposals by accredited diplomatic missions or international/regional organizations, on a reciprocity basis.
7. Disposals from an individual to a company or fund in the Kingdom that they wholly own.
8. Sale of developed units where the non-Saudi owned the land and developed it within the license period (sale within one year of license expiry). 

Filing and Compliance Mechanics

• REGA will establish an electronic portal for non-Saudi real estate ownership transactions linked to the Real Estate Registry; all applications for the acquisition or disposal of real rights must be submitted through this portal. 
• Related financial transactions must be conducted exclusively via electronic payment methods under SAMA's Payments and Payment Services System.
• Issuance of deeds and registry procedures are completed through the Real Estate Registry.
• REGA will issue a Board-approved procedural guide covering further operational detail.

Penalties

Who Is Impacted?

The following categories of non-Saudis are directly affected:

• Non-resident individuals: must obtain the digital identity, Saudi bank account, and Saudi mobile number requirements before acquiring real estate.
• Resident non-Saudi individuals: may own one residential property for personal use outside the geographic scope (Makkah and Madinah excluded).
• Non-Saudi companies with foreign shareholding: subject to Ministry of Investment registration, beneficial ownership disclosure, and the 15-day notification requirement.
• Listed companies, licensed funds, and SPVs: governed under the Capital Market Law framework, subject to Capital Market Authority controls coordinated with REGA.
• GCC nationals: unaffected — continue to be governed by the GCC Real Estate Ownership Statute or other more favorable regimes.
• Non-Saudi non-profit entities: subject to National Center registration and ongoing change-notification obligations.

Action Points

Affected clients should consider taking the following steps promptly:

• Assess registration status: non-Saudi companies and non-profits should confirm whether Ministry of Investment or National Center registration is required and register promptly.
• Complete pre-acquisition steps: non-resident individuals should obtain a digital identity, Saudi bank account, and linked mobile number before any acquisition.
• Map beneficial ownership: prepare disclosure of direct and indirect owners and set up monitoring for 5%+ ownership changes.
• Quantify fee exposure: model the 2% ownership fee alongside the 5% RETT for planned acquisitions in Riyadh, Makkah, Madinah, or Jeddah.

How Deloitte can help

Deloitte's Tax & Legal team is well-positioned to assist you in navigating the requirements introduced by the Implementing Regulations. We can assist you to navigate these new requirements, including registration, beneficial ownership disclosure analysis, pre-acquisition tax modeling, review of existing holding structures, and ongoing compliance monitoring. Please do not hesitate to reach out to your usual Deloitte contact or any member of our team to discuss the implications for your specific circumstances.