Buying Property in Madinah in 2026: Rules for Foreign and Non-Saudi Buyers

Buying property in Madinah is possible for some non-Saudi buyers under Saudi Arabia’s updated property ownership system, but the holy city has special restrictions. For individual non-Saudi buyers, ownership in Madinah is limited to Muslim natural persons and remains subject to the official geographical ownership zones and regulatory conditions.

The updated Law of Real Estate Ownership by Non-Saudis entered into force on 22 January 2026. The Real Estate General Authority (REGA) confirms that the system applies to residents and non-residents, while Makkah and Madinah remain subject to additional religious and geographical controls.

Plan your buying budget: Use the Makkah and Madinah property purchase cost calculator to estimate tax contributions, applicable disposal fees, brokerage, VAT and quoted legal costs.

Can a foreigner buy property in Madinah?

Yes, potentially. A non-Saudi individual may own property or acquire another permitted real right in Madinah if the individual is Muslim and the specific property falls within an ownership zone and category permitted by the Saudi authorities.

That does not mean every apartment, villa, land plot or commercial unit in Madinah is available to a foreign buyer. The property itself, its location and the type of ownership right must all fall within the current official rules.

Can a Muslim non-resident buy in Madinah?

REGA states that the system covers non-Saudi residents and non-residents. Residents can apply through the official Saudi Properties portal using their Iqama details. For an eligible non-resident, the process begins through the Saudi representation or embassy to obtain the digital identity required to continue the ownership application through the official portal.

Before paying any booking fee or deposit, the buyer should verify current eligibility directly through the Saudi Properties platform.

Are all parts of Madinah available for non-Saudi ownership?

No. Ownership by non-Saudis is governed through designated geographical zones. The official Saudi Properties platform provides the current maps and controls, including where ownership is available, the permitted type of real estate right and any applicable limits.

A property advertisement describing a project as “available to foreigners” should therefore be treated as a marketing claim until the buyer confirms the exact property against the official ownership framework.

What should you check before buying property in Madinah?

Your eligibility: confirm that your nationality, residency status and buyer category meet the current requirements.
Muslim individual requirement: for an individual non-Saudi buyer in Madinah, the holy-city rule limits ownership to Muslims.
Official ownership zone: verify the exact location through the Saudi Properties portal.
Title and registration: confirm the seller’s ownership and the property registration status.
Broker licence: use REGA’s FAL inquiry service to check the broker or brokerage establishment.
Advertisement licence: verify the real estate advertisement where applicable.
Project status: for off-plan property, verify the project and developer through the appropriate Saudi regulatory channels before paying.
Total purchase cost: check tax, registration, service charges, financing costs and any other contractual fees.

Real Estate Transaction Tax

Saudi Arabia generally imposes a 5% Real Estate Transaction Tax on real estate transactions unless a statutory exemption applies. The tax position should be confirmed for the particular transaction before completion.

Do not calculate affordability using only the advertised sale price. A serious buyer should establish the complete acquisition cost before signing.

What about companies?

The ownership rules for companies are different from the rules for individual buyers. The updated law contains separate provisions for Saudi companies whose capital is partly or wholly owned by non-Saudis, listed companies, investment funds and other entities. A corporate investor should confirm which legal category applies before assuming it can purchase a particular property in Madinah.

Step-by-step approach for a non-Saudi buyer

Confirm that you are eligible under the current non-Saudi property ownership framework.
Check the exact Madinah property against the official geographical ownership zones.
Verify the seller, ownership document, broker and advertisement.
Review the purchase contract, payment schedule, handover terms and refund clauses.
Confirm the applicable tax, registration and service costs.
Complete the required ownership and registration procedures through the official Saudi channels.

Property investment in Madinah

Madinah attracts substantial demand linked to religious visitors, residents, hospitality, accommodation and continuing urban development. Those fundamentals can make the city attractive to investors, but a strong market story does not override ownership law. The first question for a non-Saudi investor should always be whether the specific asset is legally available to that buyer category.

Madinah property versus Makkah property

The core rule for individual non-Saudi ownership is similar in both holy cities: ownership is limited to Muslim individuals and to the permitted geographical framework. However, the actual ownership zones, projects, prices and investment characteristics can differ. Buyers should assess each city and each property separately rather than assuming eligibility in one holy city automatically applies to a property in the other.

Official sources

Information reviewed 6 October 2026. This guide provides general information only and does not determine whether a particular person or property is eligible. Verify the specific transaction through the official Saudi authorities before paying or signing.