Conditions for owning real estate for non-Saudis in Saudi Arabia

Conditions for owning real estate for non-Saudis in Saudi Arabia

You can now learn about the conditions for owning real estate for non-Saudis in the Kingdom of Saudi Arabia, by continuing to read this article, which provides you with a comprehensive guide to the rules regulating this process, and highlights the most important aspects that those wishing to own real estate must know.

On the other hand, the real estate market in the Kingdom is witnessing amazing developments, coinciding with Vision 2030, which aims to attract foreign investments and diversify sources of income. From this standpoint, specific controls and conditions have been put in place that explain to non-Saudis the steps for owning real estate, thus opening new horizons for investment and residence in the country. Follow more details below.

Advantages of owning real estate in Saudi Arabia

Many people think about owning real estate in the Kingdom of Saudi Arabia, whether they are Saudis or foreigners, because of the many advantages it provides, the most important of which is the feeling of security and stability, and allowing the owner the freedom to dispose of his property, whether by living in it or renting it to others, in addition to the increase in the value of real estate over time, especially in tourist areas, which makes it a profitable investment in the long term.

As for foreigners who have obtained residency in Saudi Arabia, they have other valuable advantages, including freedom of movement between establishments, the possibility of issuing visit visas to relatives, using the paths designated for Saudi citizens, working in the private sector, and practicing business according to the Saudi investment system. In general, owning real estate for non-Saudis is an attractive option because of the housing, investment, and other additional benefits it offers.

Categories of non-Saudis allowed to own real estate in the Kingdom of Saudi Arabia

• People who do not hold Saudi citizenship.
• Non-Saudi companies.

Also, Saudi companies founded, co-founded, or in which any person who does not hold Saudi citizenship, whether of natural or legal standing, is permitted to own shares. However, there are exceptions that can be explained as follows:

Banks and real estate financing companies licensed by the Central Bank of Saudi Arabia have their own status, as they are allowed to own real estate only in cases of: financing the purchase of real estate for Saudi citizens, or owning real estate that will be the company’s headquarters or branches, or that is used to conduct its banking or financing business, provided that the Central Bank of Saudi Arabia sets controls and regulations that regulate these operations to prevent any violations or unallocated uses.
Companies listed on the Saudi Stock Exchange are allowed to own real estate in accordance with controls set by the Capital Market Authority in coordination with other relevant government agencies.
Other exceptions include Cabinet decisions, which allow them to establish new controls and rules that allow other categories of companies to own real estate, as well as specifying specific categories or individuals who are allowed to own property by special decision.

Details about the conditions for owning real estate for non-Saudis

After you know the most important categories of non-Saudis allowed to own real estate, it is important that you also know the conditions that must be met to complete the steps to own real estate, which are as follows:

1. Provides valid residency and ID.
2. Each non-Saudi person must own only one property.
3. The resident must not have any criminal or security cases inside or outside the Kingdom.
4. The property must be owned for residential purposes only.
5. Obtaining a license from the Saudi Ministry of Interior.
6. The investment volume in the real estate project must not be less than 30 million Saudi riyals.
7. The minimum investment period shall be five years, starting from the date of registration of ownership of the property.
8. The property ownership system does not allow non-Saudis to own property in Mecca or Medina, and they can rent.
9. Obtaining the approval of the Saudi Ministry of Foreign Affairs for legal persons.
10. Provide all data related to the property to be purchased, including area, location, and any other relevant information, in addition to a copy of the title deed.

Conditions for owning real estate for non-Saudis who are citizens of the Gulf Cooperation Council countries

The Kingdom of Saudi Arabia regulates the process of ownership of real estate by citizens of the Gulf Cooperation Council countries within its territory in accordance with unity agreements between the GCC countries, and this ownership is subject to the following conditions and controls:

Citizens of the Gulf Cooperation Council countries, whether natural or legal persons, may own real estate within Saudi Arabia with a maximum of three properties, provided that the ownership is for the purpose of housing, and the area of each property does not exceed 3,000 square meters. If the property is land, the owner must begin building it within a period not exceeding six years from the date of registration of the property It is also not permissible to dispose of the property in any form of legal disposition, such as sale, gift, or anything else, except after the expiration of a period of four years from the date of its registration.

Documents and papers necessary to start real estate ownership procedures for non-Saudis

You must prepare the following papers and documents before starting the procedures for owning property for non-Saudis:

1. A copy of your valid passport.
2. A copy of the first passport with which you were registered to enter the Kingdom.
3. A copy of your and your spouse’s valid residence.
4. A copy of the birth certificates of children born within the borders of the Kingdom of Saudi Arabia.
5. A document showing the type, area and location of the property.
6. A diagram of the building showing its dimensions relative to the street and adjacent buildings.
7. A document provided by your workplace showing your income and a certificate of good conduct.
8. Copy of title deed, building permit, survey report.
9. A copy of your bank account for the last 6 months.
10. Submit a written declaration pledging that the property is residential.

Real estate ownership procedures for non-Saudis

After fulfilling the above-mentioned conditions and preparing the necessary documents and papers, you can now begin submitting a real estate ownership application for non-Saudis electronically via the Absher platform by following the following steps:

1. Access the www.absher.sa platform.
2. You will see multiple options for Absher “Individuals, Business, Government”, choose “Absher Individuals” to access its services.
3. Enter username “national ID number or residence number“.
4. Enter your password in Absher.
5. Press the “Log in“ button.
6. Select “General Services” from my list of services.
7. Click on the service “Request to own property for non-Saudis“.
8. You will see a page containing the terms and conditions for owning real estate in the Kingdom for non-Saudis.
9. Click “New Request“.
10. Enter the required data for the properties, including: property deed number, property type, property address, property owner ID number, and property area.
11. Attach an electronic copy of the property title deed.
12. Press “Next” and confirm and submit the order.

Fees and costs required when selling a property to a non-Saudi

When deciding to sell a property in the Kingdom of Saudi Arabia to a non-Saudi investor, you should be aware that there are certain fees that are calculated based on several factors, the most important of which are: the location of the property and its market value. These fees include several types, namely: registration fees imposed by the relevant government agencies to officially complete the ownership transfer process. Taxes are also imposed on real estate transactions, which are a percentage of the sale value determined by tax laws.

There are also additional fees related to the legal services you may need when hiring a lawyer or hiring a legal advisor, as well as fees for documenting contracts in official bodies and fees for transferring ownership, the value of which varies from one region to another within the Kingdom.

There may also be additional costs associated with other real estate services, such as the real estate broker’s commission, if any. These costs are calculated accurately to ensure the transparency of the sale process, protect the rights of all contracting parties, and avoid any unexpected financial surprises. Therefore, it is essential that you consider these fees and include them in the costs of the sale process when making such a decision.

Tips for those wishing to own real estate for non-Saudis

If you are a non-Saudi investor who wants to own real estate in the Kingdom of Saudi Arabia, it is useful to take a number of precautionary measures to ensure a sound and legal investment process, the most important of which is to seek the assistance of a specialized law firm that has sufficient scientific and professional background regarding real estate laws and regulations in the Kingdom that qualifies it to help you avoid any legal issues or procedural complications.

You can contact the office of lawyer Abdulmajeed Al Rashid for Law and Legal Consultations and approve him as a reliable partner in all the details of the steps to own the property of your choice and ensure that your money is invested correctly.