Do you not hold Saudi nationality and wish to own property? Do you want to know all the necessary conditions for owning property in the Kingdom of Saudi Arabia? Here are the solutions and conditions that must be met.
In this article, we will explain all details Foreign ownership of real estate. You will find in this article all the conditions and information you need to own property in the Kingdom, including how to obtain the necessary approvals and pay attention to local regulations and regulations related to ownership. The Kingdom of Saudi Arabia is a welcoming destination for everyone, welcoming many nationalities, including foreign individuals who do not hold Saudi nationality.
Foreign ownership of real estate in the Kingdom of Saudi Arabia
Due to increased interest in investment in the Kingdom of Saudi Arabia, the Ministry of Investment has moved to amend several provisions of the Foreign ownership of real estate, aiming to enhance the efficiency of procedures related to foreign ownership and investment and to increase their effectiveness.
The proposed amendment to Foreign ownership of real estate system aims to boost competitiveness and marketing capabilities in the real estate sector of the Kingdom and to promote growth in various economic sectors. Additionally, it allows foreigners to own properties in specific areas under specific supervision and regulation, enhancing investment attraction to these targeted development areas
.However, Mecca and Medina are the only places where non-Saudis are not allowed to buy properties, as the Kingdom seeks to preserve the Islamic character of these cities.
The Kingdom of Saudi Arabia allows foreigners to own properties in the Kingdom under a set of conditions that must be met to ensure the implementation of their licensed activities. The system for non-Saudi ownership and investment in real estate was announced through a royal decree dated 17/4/1421 H, and it was published and announced to the public.
The conditions for foreigners to own property in Saudi Arabia
Non-Saudi residents in the Kingdom are able to obtain a license to own properties for residential purposes after obtaining approval from the Ministry of Interior.
The implementation of this system includes:
- Implementing the property rights established under previous regulations when transferring property ownership.
- Applying the benefits stipulated in the regulations governing property ownership for citizens of the Gulf Cooperation Council (GCC) countries.
- Obtaining ownership rights or any other real rights through inheritance.
- The total cost of the real estate investment project must not be less than 30 million Saudi Riyals, with the possibility of modification by the Council of Ministers.
- Providing approval from the issuing authority for licensing the foreign investor’s professional or economic activities.
- Implementing the laws and decisions that specify the conditions for Foreign ownership of real estate, with the prohibition of ownership in certain locations.
- Not accepting apartment ownership by foreigners for investment purposes unless the property remains owned by the investor for a period of not less than five years.
- Obtaining approval from the Ministry of Interior for property ownership for personal residence, while foreign companies and international institutions require approval from the Ministry of Foreign Affairs.
- Prohibiting foreigners from owning property within the borders of the cities of Mecca and Medina, while allowing leasing for a maximum period of two years, extendable once or twice.
Steps for foreigners to apply for property ownership in the Kingdom of Saudi Arabia
After meeting the specified conditions set by the law for individuals and companies, foreigners must proceed with the following steps:
- Visit the Absher government platform, where the Saudi Ministry of Interior has facilitated procedures for obtaining approval to own or purchase property in Saudi Arabia for foreigners through the electronic service.
- Choose the “Individuals” tab on the Absher platform, and either create a new account if this is the first time using the platform, or log in if there is a previous account.
- Select the “My Services” tab available on the homepage, then “Public Services,” and then click on “Request Non-Saudi Ownership of Real Estate.”
- A new request form will appear where all personal and property information must be filled out completely, and the required documents such as residency ID number and property deed must be attached.
- Afterwards, click on the “Next” button, then “Confirm Request,” and finally “Submit Request.”
- Approval for property ownership and registration of the sale contract for the property in Saudi Arabia for foreigners will be processed within a few hours, provided that all documents are correct and all information is provided accurately.
Conditions for submitting a request for property ownership by non-Saudis through Absher
For foreign residents or foreigners in Saudi Arabia to be able to submit a request for Foreign ownership of real estate through the Absher electronic platform, the Ministry of Interior has specified several mandatory conditions to be met when submitting the application, as follows:
- The residency permit of the applicant must be valid, and the application cannot be submitted with an expired residency permit.
- The applicant for non-Saudi property ownership must not be wanted for arrest.
- Clear and complete information about the property must be provided.
- Providing a copy of the property deed.
- A resident is entitled to own only one property in the Kingdom of Saudi Arabia.
The fees for transferring property ownership to foreigners in Saudi Arabia
No fees have been imposed thus far on property transfer, whether for foreigners or Saudis, according to the latest applicable laws regarding Foreign Ownership of Real Estate in the Kingdom. Additionally, property transfer procedures are completed within just one hour, provided that all necessary conditions and procedures enabling the ministry to execute the property transfer process.
The fees for selling real estate to non-Saudis.
Fees are imposed on real estate transactions involving foreigners in the Kingdom of Saudi Arabia, with a deduction of 10% of the property value in favor of the Ministry of Finance, whether it’s when a foreigner purchases a property or when a foreigner sells a property.
In conclusion, the Kingdom of Saudi Arabia warmly welcomes investors from all backgrounds and offers significant opportunities in the real estate sector. Bin Saedan As a real estate investment company, we strive to maximize your returns on investment and facilitate your success in this thriving market.