Property Ownership in Saudi Arabia for Expats — 2025 Laws & Updates

TL;DR: A new non‑Saudis real estate law was published in July 2025 with a zone‑based framework expected to be in force around early 2026 (after implementing regulations and geographic zone lists are posted). Until then, operate under the current processes: use Najiz for title/transfer, pay RETT on qualifying disposals, and register leases on Ejar. Treat “zone clearance” in 2026 as a hard gate: no zone confirmation, no purchase.

What changed in 2025 (and what “2026 laws explained” means)

• July 2025: A new law on real estate ownership by non‑Saudis was published. It introduces a geographic zone approach, with details to be set in the implementing regulations and zone lists. The in‑force date is months after publication (roughly early 2026).

• Implication: Don’t guess the zones. Plan with two lanes:

• Lane A (2025): Use current processes: Najiz (Ministry of Justice) for electronic title/transfer, RETT for real‑estate transaction tax on most disposals, and Ejar for legally effective leases.

• Lane B (2026): Once zone maps and implementing rules are live, confirm your city/district and property type are permitted for non‑Saudis before you wire funds.

Principle: You can transact safely today by following existing rails (Najiz/RETT/Ejar). In 2026, add a first step: zone clearance.

What you can do today vs what may expand in 2026

Today (2025):

• Own an existing unit in cases allowed under current frameworks; verify title on Najiz and run due diligence.

• Buy off‑plan through registered developers with payments only into escrow.

• Lease in compounds/apartments and register contracts on Ejar.

• Become a landlord (if you hold an eligible title) and use Ejar for legal enforceability.

• Invest via markets (e.g., REITs and listed developers/operators) for exposure without title mechanics—use a brokerage account.

2026 (expected):

• Zone‑based permissions will determine where and what non‑Saudis may own, and under what conditions. Always check the zone list and implementing regulations before committing money.

Six ways to get property exposure (decide by purpose)

1) Own an existing unit (apartment/villa) — classic title transfer via Najiz, pay applicable RETT, set up utilities/HOA. 2) Buy off‑plan — only through a registered developer; pay into escrow; collect snagging list at handover; title after completion. 3) Lease long‑term (compound/city apartment) — Ejar registration; stable lifestyle without ownership risk. 4) Become a landlord — register leases on Ejar; set deposit policy; define repairs/maintenance SLAs; plan renewals. 5) Invest via the market — REITs/listed developers (including assets in districts where direct title isn’t open). 6) Corporate/Premium Residency route — if you hold Premium Residency or invest via a local company, confirm what the new rules allow for your category once live.

Decision aid: Choose a lane by purpose (primary home vs yield vs diversification) → then follow the playbook for that lane.

Costs & taxes/fees — build a real budget (no surprises)

Up‑front (one‑off):

• RETT (real‑estate transaction tax) on most disposals (paid at transfer).

• Registration/notary fees (minor vs total price, but plan for them).

• Due diligence (legal review, surveys, valuation).

• Move‑in: furniture, appliances, AC servicing, small works.

Recurring (annual/monthly):

• Service charges/HOA (strata/compound).

• Utilities & internet (summer AC loads can be material).

• Insurance (contents or landlord policy).

• Maintenance (set aside a % of property value yearly).

• Property management (if letting).

• Vacancy buffer (if renting out).

If letting:

• Contracts must be registered on Ejar to be legally effective. Keep the Ejar contract PDF and renewal reminders.

Budget spreadsheet columns: Item | One‑off | Recurring | Trigger | Evidence (PDF) | Owner | Next check date.

Mortgages & financing — pre‑approval, Shariah‑compliant structures, early‑settlement math

• Pre‑approval first: Get a bank pre‑approval before viewings; it sets your price band and keeps you credible.

• Conventional vs Shariah‑compliant: Understand murabaha/ijara mechanics, fees, and how profit is calculated/ repriced.

• Rate type: Fixed vs variable; read the repricing clause; ask for sample scenarios.

• Early settlement: Request the formula (flat fee vs % outstanding). Simulate total repayable if you exit in years 3, 5, or

• Insurance tie‑ins: Property and life/takaful requirements; check exclusions.

• Documentation: Residency ID, salary letter, bank statements, debt schedule, and clean KYC.

Pro move: Avoid new consumer credit during underwriting; keep salary going to one bank until the mortgage completes.

Playbook: buying an existing property (Najiz + title + RETT)

1) Offer & reservation — Agree key terms in writing; avoid large deposits to personal accounts. 2) KYC & proof of funds — Prepare bank statements, salary letters, and ID for bank/seller checks. 3) Title search (Najiz) — Use Najiz to verify digital title and any encumbrances. 4) Contract (SPA) — Lawyer checks fixtures, delivery, penalties, warranties, and survival clauses. 5) RETT — Calculate and pay; save the RETT receipt with your tax folder. 6) Transfer — Execute electronic transfer on Najiz; ensure the new title shows in your name. 7) Utilities & community — Transfer utilities/internet; notify HOA/compound; store welcome pack. 8) Post‑completion — Save SPA, receipts (RETT, notary), digital title, and warranty docs in one folder.

Playbook: buying off‑plan (escrow, milestones, handover, snagging)

1) Developer due diligence — Confirm developer/project registration; ask for escrow details. 2) Escrow payments — Pay only to the registered escrow account; keep SWIFT and stamped receipts. 3) Milestones & changes — Link payments to milestones; record change orders in writing. 4) Handover & snagging — Bring a snag list (photos + descriptions); agree a defects liability schedule with dates. 5) Title & utilities — After completion, complete title issuance and set up utilities; keep warranties/manuals. 6) If letting — Prepare Ejar documents, deposit policy, and building rules for tenants.

Rule #1: No escrow, no deal. If a salesperson pushes a personal account, walk away.

Playbook: becoming a landlord (Ejar, deposits, repairs, renewals)

• Ejar first: Don’t hand over keys without an Ejar contract and deposit policy in writing.

• Repairs: Classify urgent (water, power, safety) vs routine; give tenants a clear reporting channel; log tickets.

• Collections: Automate rent collection; confirm receipt each month; keep a ledger.

• Renewals: Offer terms 45–60 days before expiry; respect notice periods; update Ejar on renewal.

• Move‑out: Joint inspection; sign a snagging close‑out before returning the deposit.

Risk controls & red flags (avoid expensive mistakes)

• No escrow, no deal. Off‑plan funds must go to escrow, not personal accounts.

• Encumbrances: Confirm no mortgages/liens before you wire money.

• Title mismatch: Re‑run Najiz verification on transfer day; names must match.

• Too‑good yields: Test claims against actual rents in the district (use recent Ejar‑level comparables).

• Unlicensed brokers: Ask for broker license ID and company details; keep them in your file.

• RETT discipline: Keep your RETT receipt and transfer confirmations.

2026 zones watchlist — verify permissions fast

When the implementing regulations go live: 1) Open the Updated Law hub and find the Geographic Zones list. 2) Confirm your district and property type are permitted for non‑Saudis (authorized vs prohibited zones). 3) Screenshot the page and save it to your property folder. 4) If targeting holy‑city assets, check whether exposure is via listed companies/REITs rather than direct title until zones confirm otherwise. 5) Only after zone clearance proceed to Najiz/RETT/Ejar steps.

No zone clearance, no purchase. Treat zone confirmation like a boarding pass.

Cross‑border money flows & compliance (AML/KYC, evidence)

• Source of funds: Keep bank statements, salary letters, and sale proceeds (if from abroad) ready for bank review.

• RETT & title receipts: Store PDFs; you’ll need them for audits and future sales.

• Account reporting: If you’re a US person, remember FBAR/FATCA; many other countries use CRS/AEOI. Banks may ask for a tax residency self‑cert.

• Repatriation: Your bank may ask for document trails when you send sale proceeds abroad; keep SPA, receipts, and title copies in one zip.

District vetting & yields — DIY, not hype

• Commuting triangle: Home ↔ work ↔ school/clinic; time each route at rush hour and off‑peak.

• Noise & airflow: Visit at noon (heat/AC) and night (neighbours/traffic).

• Shops & services: Map groceries, pharmacy, hardware, and a reliable AC vendor.

• Mobile & internet: Run a signal test in key rooms; ask ISP about speeds/lead times.

• Rent comps: Gather 6–12 nearby listings with similar specs; drop outliers; compute net yield (after service charges, maintenance, vacancy, management).

Title, encumbrances & boundaries — due diligence beyond the headline

• Encumbrance search: Confirm no liens/mortgages/court holds.

• Boundaries & area: Compare title plans to reality; for re‑subdivided plots, request recent surveys and ensure titles are updated.

• Fixtures vs movables: List built‑ins and appliances in the SPA; photograph before completion.

• Utilities debt: Request final bills; take timestamped meter photos at handover.

NEOM/Red Sea & master developers — questions to ask

• Community rules: Request bylaws and service‑charge policies; confirm visitor access and short‑let policy (if any).

• Construction quality: Ask for warranty terms and defects liability timeline; plan a second snag after your first summer.

• Transport & access: Check commute times to key areas; verify parking and EV charging plans (if relevant).

Co‑ownership & exit planning (spouse/partners/corporate)

• Ownership structure: Joint names vs special‑purpose company—understand how it affects banking, liability, and home‑country taxes.

• Exit clauses: Agree a buyout formula and who has authority for repairs/management.

• Records: Keep resolutions/minutes if using an entity; store them with your SPA/title.

Property manager contracts — clauses to negotiate

• Scope: Leasing only vs full management (inspections, repairs, arrears).

• Fees: Marketing/lease‑up/renewal/management %, and caps on vendor mark‑ups.

• Authority: Spend limit before manager must seek your approval.

• Reporting: Monthly summaries, rent receipts, maintenance logs, with photos.

• Termination: Exit fees and handover of keys, documents, and deposits.

Resale playbook — exit cleanly (and keep gains)

• File readiness: SPA, title, receipts, HOA statements, maintenance history.

• Valuation & pricing: Use at least two valuations; set a realistic band.

• Listing discipline: Professional photos, floor plan, accurate description.

• Deposits & conditions: Pay to company accounts only; define conditions precedent and completion date.

• Pre‑transfer checks: Re‑run title; confirm no liens; schedule Najiz transfer; prepare RETT steps.

• Post‑sale: Close utilities, cancel insurance, archive RETT and proceeds proofs in your exit folder.

Personas — four worked examples (decision trees you can mirror)

1) Premium Resident—Family Base

• Goal: Buy a townhouse near schools; hold 8–10 years.

• Plan: Bank pre‑approval → shortlist → title search → SPA → RETT → Najiz transfer → utilities/HOA.

• Risk controls: Budget for service charges + summer AC; schedule annual maintenance.

2) Off‑Plan Investor

• Goal: New‑build apartment; handover in 24 months; later let.

• Plan: Developer registration → escrow validation → milestone payments → snagging → title → Ejar.

• Risk controls: Demand escrow statements; change orders in writing; set a vacancy buffer.

3) Market‑Only Exposure (no title)

• Goal: Liquidity/diversification via REITs/listed developers.

• Plan: Brokerage account; read factsheets and audited reports; diversify funds; reinvest dividends.

• Risk controls: Avoid concentration in a single project/operator; keep statements in your tax folder.

4) Remote Landlord (frequent travel)

• Goal: Own and let a unit while traveling for work.

• Plan: Property manager with SLA; Ejar renewals; automated collections; emergency float equal to 3–4 months’ rent.

• Risk controls: Quarterly file reviews; strict vendor approval limits.

Worksheets & checklists (printables)

A) Viewing checklist

• Building age, elevator/AC condition, parking, noise, water pressure, mobile signal, nearest clinic/school/bus, HOA rules.

B) SPA legal checklist

• Parties & IDs, fixtures list, payment schedule, penalties, handover condition, warranties, dispute forum, language versions.

C) Off‑plan escrow checklist

• Escrow bank & account, project registration proof, milestone triggers, change‑order form, handover documentation.

D) Mortgage prep sheet

• Salary letter, bank statements, debt schedule, credit report, pre‑approval, APR/profit sheet, early‑settlement clause.

E) Landlord readiness sheet

• Ejar account, deposit policy, inventory photos, repairs matrix, rent collection setup, renewal reminders.

F) Evidence & tax folder

• RETT receipt, SPA, digital title, utilities, HOA invoices, property insurance, Ejar contracts, broker license.

Scripts (EN/AR) — bank, developer, broker, property manager, HOA

Bank pre‑approval (EN):

“I’m a salaried expat with [employer]. Here are my last 6 statements and a salary letter. Please confirm pre‑approval, your profit/APR, and early‑settlement terms.”

طلب موافقة تمويل (AR):

«أنا موظف مقيم لدى [جهة العمل]. هذه كشوفات الحساب لآخر 6 أشهر وخطاب تعريف بالراتب. أحتاج موافقة مبدئية، معدل الربح/الفائدة، وشروط السداد المبكر.»

Developer escrow (EN):

“Before any payment, please share the escrow account details and the project’s registration proof. I will only pay into escrow and need stamped receipts.”

المطور — حساب الضمان (AR):

«قبل أي دفعة، نرجو تزويدنا بتفاصيل حساب الضمان وإثبات تسجيل المشروع. سيتم السداد على حساب الضمان فقط مع إيصالات مختومة.»

Broker license (EN):

“Kindly send your broker license ID and company CR. I’ll add them to my compliance file.”

رخصة الوسيط (AR):

«الرجاء إرسال رقم رخصة الوسيط والسجل التجاري للشركة لإضافتهما في ملف الامتثال.»

Property manager SLA (EN):

“Please list your repair SLAs, emergency response window, vendor selection method, and monthly reporting format. I need Ejar renewal reminders 45 days pre‑expiry.”

مدير عقار — صيانة (AR):

«نرجو تزويدنا بـ اتفاقية مستوى الخدمة للصيانة، وقت الاستجابة للحالات الطارئة، آلية اختيار المزودين، ونموذج التقرير الشهري. كما أحتاج تذكير تجديد إيجار قبل 45 يوماً.»

HOA documents (EN):

“Before I commit, please share the last two years of budgets/minutes, current service‑charge rate, and any special levies.”

وثائق اتحاد الملاك (AR):

«قبل الالتزام، نرجو تزويدنا بميزانيات/محاضر آخر سنتين، ومعدل رسوم الخدمة الحالي، وأي رسوم استثنائية.»

FAQs

Cost‑of‑ownership model — set it up once (then reuse)

Inputs: purchase price, RETT %, notary/registration, mortgage profit/APR, term, service charges, insurance, expected maintenance %, vacancy (if letting), management %, sale costs, and a buffer for summer AC loads. Outputs: monthly cash outlay (owner‑occupier) or net yield (landlord). Stress tests: +200 bps in profit rate, +15% service‑charge shock, 2 months vacancy, −10% sale price. Approve the deal only if you remain comfortable in each scenario.

Mortgage qualifiers — what banks actually check

• Debt service ratio (DSR): Clear consumer loans/credit lines before you apply; avoid new credit inquiries during underwriting.

• Continuity of income: Stable, verifiable salary; clean statements; single payroll bank during underwriting.

• Down‑payment sources: Use documented savings; avoid last‑minute cash deposits without a paper trail.

• Property type: Different criteria for off‑plan vs completed units (LTV, pricing, insurance).

• Early settlement: Ask for the formula and simulate total repayable if you exit early.

Freehold, strata & community realities — what you feel day to day

• Strata/condo: Pay service charges; abide by house rules (noise, pets, renovations). Keep budgets/minutes.

• Compound living: Security + amenities; check visitor access, children’s facilities, and bus routes.

• Standalone villas: More space and privacy; plan higher maintenance (AC, pumps, landscaping).

Editor’s ‘zones go live’ mini‑plan (print this)

1) Open the Updated Law page and Geographic Zones list; save PDF/CSV. 2) Confirm your district and property type are authorized for non‑Saudis. 3) Screenshot the zone page and save it to your property folder. 4) Re‑confirm RETT steps and Najiz transfer sequence before paying. 5) If targeting holy‑city assets, verify whether access is via listed firms (market route) until direct title is clearly permitted.

Your permanent property folder — structure you can audit in 5 minutes

• ID/ (residency, passport)

• Title/ (digital deed, plan, encumbrance searches)

• SPA/ (contracts, addenda, change orders)

• Payments/ (RETT receipt, bank slips, escrow confirmations)

• HOA/ (budgets, minutes, rules)

• Utilities/ (bills, meter photos)

• Insurance/ (policy schedules, claims)

• Ejar/ (contracts, renewals, receipts)

• Maintenance/ (vendor list, invoices, logs)

• Exit/ (valuation, listing agreement, buyer KYC checklist)

Troubleshooting matrix — fast decisions

More scripts you’ll actually use (EN/AR)

Utility handover (EN):

“We’ll take timestamped meter photos at handover and settle final bills before key exchange. Please prepare closing statements.”

تسليم العدادات (AR):

«سنلتقط صور مؤرخة للعدادات عند التسليم ونسدد الفواتير النهائية قبل تسليم المفاتيح. نرجو تجهيز كشوف الإقفال.»

Broker ‘company account only’ (EN):

“For compliance, I can’t transfer to a personal account. Please send the company invoice and escrow/corporate account details.”

وسيط — الإيداع (AR):

«للامتثال، لا يمكنني التحويل إلى حساب شخصي. نرجو إرسال فاتورة الشركة وتفاصيل حساب الضمان/الشركة.»

10 quick heuristics to avoid overpaying

1) New‑build premium >15% vs comparable resale? Demand a strong reason. 2) Yields quoted without service charges are noise. 3) One broker pushing you to wire today → walk away. 4) “Guaranteed rent” without escrowed reserves rarely survives stress. 5) If you can’t explain the profit/APR and early‑settlement math, you’re not ready to sign. 6) Off‑plan: If you can’t see escrow in writing, it doesn’t exist. 7) HOA budgets missing? Price in a risk buffer. 8) Developer silent on defects liability? Expect to chase repairs. 9) Rent comps show long vacancies? Lower your yield assumptions. 10) If the commute is awful in week one, the “deal” will feel expensive forever.

Case studies — avoidable mistakes (and how to prevent them)

A) Off‑plan deposit wired to a personal account

• What happened: Buyer rushed by a salesperson; funds sent to a personal IBAN.

• Fix: Only pay to registered escrow. Ask for the escrow letter and project registration proof; call the bank to verify account name/IBAN.

B) Title mismatch at transfer

• What happened: Seller’s name on the title didn’t match the SPA spelling; transfer stalled.

• Fix: Re‑run title verification on Najiz before transfer; correct SPA with exact passport order spelling; re‑upload.

C) Unplanned service‑charge jumps

• What happened: HOA increased charges after elevator maintenance failure.

• Fix: Request prior HOA budgets/minutes; stress‑test your model with +15% service charges; keep a maintenance reserve.

D) Letting without Ejar

• What happened: Informal lease; rent disputes dragged on.

• Fix: Register every lease on Ejar; keep deposit policy and inventory photos; use a repairs matrix.

End‑of‑year owner checklist (paste this into your calendar)

1) Export bank statements and rent receipts; reconcile with your ledger. 2) Save HOA invoices and the latest budget/minutes. 3) Download Ejar contracts/renewals; verify tenant details and next expiry. 4) Collect insurance policy schedules and any claims outcomes. 5) Take fresh meter photos and note serial numbers. 6) Run AC and plumbing checks before summer. 7) Update your property folder index and archive the year in a zip.

Frequently overlooked due‑diligence questions (ask these early)

• Is the developer’s warranty third‑party backed? What is the defects liability period and response SLA?

• Are short‑lets permitted in this building? If yes, under what licensing and with what building rules?

• What are the pet policies and how are they enforced?

• For villas, who maintains the boundary walls and shared infrastructure (e.g., gate motors)?

• Are there special levies or major works planned in the next 12–24 months?