Steps for buying real estate in Saudi Arabia: a guide for real estate agents and investors

By 2026, the process of purchasing real estate in Saudi Arabia had become more streamlined thanks to reforms and the implementation of digital solutions. However, even with these simplifications, the transaction involves several mandatory steps and requires compliance with all legal formalities, particularly on the part of foreign buyers.

1. Buyer identification and system registration

At the initial stage, it is necessary to determine the investor’s legal status — whether they are an individual or a company, as well as a resident or non-resident.

Foreign buyers are required to undergo a Know Your Customer (KYC) procedure, which can be carried out through diplomatic missions or authorized agencies.

Afterward, the investor registers on the Saudi Properties government digital platform, through which access to real estate transactions is provided.

2. Property selection and verification of approved zones

The next step is selecting a property. It is important to take legal requirements into account:

• purchases are only permitted in approved investment zones;
• special restrictions apply in certain cities, including Mecca and Medina.

In practice, this means verifying that the property complies with government zoning regulations and urban planning standards.

3. Legal due diligence

Before closing the deal, a mandatory legal review of the property—the due diligence process—is conducted.

It includes:

• analysis of title documents, such as the title deed;
• verification of the land plot and its permitted use;
• identification of encumbrances, debts, and tax liabilities.

This stage is critical for minimizing risks and protecting investments.

4. Negotiating terms and drafting the contract

After inspecting the property, the parties proceed to negotiate the terms of the transaction.

A Sale and Purchase Agreement (SPA) is drafted, which specifies:

• the property’s price;
• the payment terms;
• the rights and obligations of the parties.

When purchasing properties under construction, an escrow account mechanism may be used to ensure the security of payments.

5. Conducting the transaction via a digital platform

The transaction is then formalized electronically via the Saudi Properties platform.

This stage includes:

• submitting an application for transaction registration;
• automated verification of compliance with legal requirements;
• digital signing of the contract.

Using the platform significantly speeds up the process and reduces the need for the parties to be physically present, which is particularly attractive to foreign buyers and investors.

6. Payment, taxes, and registration of ownership

The final stage involves financial settlements and the registration of ownership.

The buyer pays:

• the cost of the property;
• the Real Estate Transaction Tax (RETT), which is approximately 5%.

Afterward, the data is entered into the Real Estate Registry, and the investor receives official confirmation of ownership.