To buy property in Saudi Arabia for foreigners requires navigating a set of regulations and legal procedures. Understanding these rules is crucial to ensuring a smooth and lawful acquisition process. This article provides a comprehensive guide to the key conditions and steps for foreigners looking to buy property in Saudi Arabia, as well as the importance of legal consultation in such transactions. This article will discuss how to purchase property via the Absher portal, the conditions for real estate investment, and the importance of consulting a specialized lawyer to protect legal rights.

Buy Property in Saudi Arabia for Foreigners

Buying property in Saudi Arabia for foreigners is subject to certain conditions. The conditions to Buy Property in Saudi Arabia for Foreigners are outlined in the foreign property ownership system in the Kingdom, which provides detailed information on the requirements for owning property. The conditions include:

• Previously, foreigners were prohibited from owning in Mecca and Medina, as their properties were required to be located outside the boundaries of these two cities. However, this has recently changed, and foreigners are now allowed to own property within them.
• The residency must be valid and not expired.
• All property details must be provided along with a copy of the title deed.
• The capital must match the value of the property, or a preliminary financing approval from a recognized funding body must be provided.
• The property size should align with actual needs.
• If the property is for an industrial project, it must be located in an approved industrial area.
• The project must comply with the foreign investment laws in the Kingdom.
• Legal procedures must be completed within six months from the decision, through a visit to the notary public.

Required Documents for Starting the Property Ownership Process for Non-Saudis

Before starting the property ownership process in Saudi Arabia as a foreigner, you must prepare a set of essential documents, which include:

1. A copy of your passport: It must be valid.
2. A copy of the first passport used to enter the Kingdom: This helps determine the date of your entry into the country.
3. A copy of your residency permit: It must be valid, along with your spouse’s residency if applicable.
4. Birth certificates of children: For those born within Saudi Arabia.
5. A document detailing the property: Including the type of property, its area, and location.
6. A floor plan of the building: Showing its dimensions in relation to the street and adjacent buildings.
7. A document from your workplace: Detailing your income, as well as a certificate of good conduct.
8. A copy of the property deed: Including the building permit and survey report.
9. A copy of your bank statement: Covering the last 6 months.
10. A written declaration: A commitment that the property is for residential purposes only.

Make sure to prepare these documents correctly to ensure a smooth process and avoid any delays.

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Procedures for Buying Property in Saudi Arabia for Foreigners

Foreigners can own property in Saudi Arabia through the Absher platform by following these steps:

1. Visit the Absher.
2. Log in to your Absher individual portal using your username and password.
3. Go to the “My Services” section, select “Public Services,” and then click on “Property Ownership Request for Non-Saudis.”
4. The terms and conditions for property ownership will be displayed. Read and agree to them, then click on the “Request” button.
5. Enter the required details such as the property deed number, national ID, land area, and property type.
6. After that, click “Next” and then “Submit” to complete the process.

Conditions for Foreigners to Own Property for Real Estate Investment Purposes

Licensed establishments by the Ministry of Investment, wishing to acquire property for the purpose of implementing a real estate investment project in Saudi Arabia, can purchase property in accordance with a set of conditions outlined in the system. These conditions include:

• The project cost must not be less than 30 million Saudi Riyals.
• The property intended for ownership must be located outside the boundaries of Mecca and Medina.
• A copy of the property title deed must be provided.
• The notary public must be visited within six months of the decision.
• The establishment must use the property for the specified purpose of real estate investment within five years.

Fees When Selling Property to a Non-Saudi

When selling a property in Saudi Arabia to a foreign investor, it is essential to be aware of the various costs associated with the transaction. These costs may vary depending on several factors, such as the property’s location and market value. The fees typically include several mandatory charges imposed by relevant authorities, most notably:

• Government Registration Fees: These are official fees required to complete the ownership transfer process with the appropriate government entities.
• Real Estate Transaction Tax: This is calculated as a percentage of the property’s value and is determined based on the applicable tax regulations in the Kingdom.
• Legal Fees: If a lawyer or legal consultant is hired to handle or review the legal documentation, fees will be charged for their services.
• Documentation and Ownership Transfer Fees: These fees are paid when registering the sale contract with the official authorities and may vary depending on the city or region where the property is located.
• Real Estate Agent Commission: If a real estate agent is involved in the transaction, a set commission based on the sale price is typically charged for marketing and negotiation services.

Check out: ?Real Estate Investment in Saudi Arabia: Why Hiring a Lawyer

Tips for Foreigners Interested in Property Ownership in Saudi Arabia

If you are a non-Saudi investor looking to own property in the Kingdom of Saudi Arabia, it is important to take precautionary steps to ensure that your investment is legal and sound. One of the key steps is to consult a specialized law firm with extensive knowledge and experience in the real estate laws and regulations in the Kingdom. A lawyer can assist you in avoiding any legal issues or procedural complications that may arise.

You can schedule an appointment with the Etqan Law Firm, which is a trusted partner in all stages of the property ownership process, ensuring that your investment is made correctly and securely.

In conclusion, to buy property in Saudi Arabia for foreigners, it is essential to understand and adhere to the specific requirements and regulations in place. By following the correct procedures, including consulting a lawyer and completing all legal steps, foreigners can successfully navigate the complexities of property ownership in the Kingdom. With the right guidance, the process of acquiring property can be a rewarding venture, contributing to both personal and investment goals.

The Etqan Al Mutamayza Law Firm can provide the necessary support. You can contact their team

through the following mobile numbers: 056113776, 0541110440, 504315333

Learn about: Etqan Law Firm: Your Guide to Understanding Saudi Labor Law Termination of Contract by Employee 

Alternatively, you can visit our branches:

• Jeddah: Al-Aziziyah District–Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street – In front of Kingdom
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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