Residence permit in Saudi Arabia through the purchase of real estate

Author of the article:

Julia

Saudi Arabian real estate specialist

Date:  19.11.2024

Updated: 11/19/2024

Reading time: 13 min.

Views:  74

Saudi Arabia has become a real magnet for foreign investors and immigrants in recent years. On the one hand, this is due to economic development and reforms that are being actively implemented under the Vision 2030 program. On the other hand, the country is opening its doors to foreigners who want not only to invest but also to live here permanently. If you are thinking about how to get a residence permit in Saudi Arabia, buying real estate can be your key to this opportunity.

Why is Saudi Arabia becoming a popular destination for investors?

Saudi Arabia today is not just a country with the richest oil reserves, it is a dynamically developing state that is actively changing and adapting to modern global conditions. Let us consider several key factors contributing to the growth of investors' interest in this country.

1. Vision 2030 program

The Vision 2030 program launched by the government has become a real catalyst for economic reform and innovation. It aims to diversify the economy and reduce dependence on oil revenues. The government is actively investing in the development of technology, tourism and healthcare, which opens up new opportunities for business and investment.

2. Improvement of the investment climate

Saudi Arabia is gradually removing barriers to foreign investors, making it an attractive place to do business. In 2021, new laws were introduced that allow foreigners to fully own companies in most sectors of the economy. This is attracting the attention of entrepreneurs who want to launch their projects in this region.

3. Real estate market

Real estate in Saudi Arabia is a separate story. Every year there is a growing interest in both residential and commercial real estate. In major cities such as Riyadh and Jeddah, there is an active construction of new residential complexes and shopping centers. For example, a new business center is planned in Riyadh, which will be one of the tallest buildings in the world. This creates excellent conditions for investment as the real estate market promises stable growth.

Thus, Saudi Arabia is becoming more and more attractive to investors due to its economic strategy, improved investment climate and active development of the real estate market. These factors make the country an interesting destination for those looking for new business and investment opportunities.

Advantages of obtaining a residence permit through the purchase of real estate

Now let's look at what advantages you will get if you decide to invest in real estate and apply for a residence permit in Saudi Arabia. Firstly, it is the possibility of long-term residence and doing business in the country. If you want to set up your own company or develop an existing business, having a residence permit will make this process much easier.

In addition, obtaining a residence permit opens doors for your family. You will be able to provide your loved ones with access to quality education and medical care. The standard of living in Saudi Arabia is quite high, and many foreigners note that it is a safe and comfortable place to live. For example, new international schools and medical facilities are opening in Jeddah, making life here even more attractive.

The financial benefits are also worth mentioning. By investing in real estate, you can get tax benefits that will help you save more money. This is especially important for those who plan to do business in the country. Moreover, if in the future Saudi Arabia launches a citizenship program for investors, your real estate investment can be the first step to obtaining this status.

Thus, buying real estate in Saudi Arabia not only opens up new horizons for life and business, but also provides a lot of benefits for you and your family. Now it is time to consider the conditions under which you can obtain a residence permit through the purchase of real estate.

Conditions for obtaining a residence permit through the purchase of real estate

Now let's understand what conditions need to be met to get a residence permit in Saudi Arabia through the purchase of real estate.

1. Minimum value of real estate

The first thing to look at is the minimum property value that allows you to participate in the program. At the moment, the minimum amount is about 1 million Saudi riyals (about 266 thousand US dollars). This is a fairly reasonable amount, considering that in major cities such as Riyadh and Jeddah, you can find quality residential complexes and commercial properties in this price range.

2. types of real estate

The next important point is the types of real estate that are suitable for obtaining a residence permit. These are mainly residential complexes, apartments and commercial properties. For example, you can consider buying an apartment in a new residential complex in Riyadh or an office space in Jeddah. The main thing is to make sure that the property meets the requirements set by the government.

3. Term of validity of the residence permit

The validity of a residence permit after purchasing a property is one year, but it can be extended. This gives you the opportunity to stay in the country and develop your business ideas or simply enjoy life in Saudi Arabia. However, it is worth remembering that to extend your residence permit, you will need to prove the existence of the property and fulfill certain conditions, such as no offenses.

4. requirements for the applicant

As far as the requirements for the applicant are concerned, they are not too complicated. You will need to prove that you have the capital to purchase the property, as well as pass a criminal background check. This is a standard procedure that helps the government to keep the country safe and orderly.

So, by following these terms and conditions, you can successfully get a residence permit in Saudi Arabia through real estate purchase and start a new life in this country.

A step-by-step guide to buying real estate in Saudi Arabia

Step 1: Selecting a region and property type. Riyadh, Jeddah and Neom are the most promising regions for investment. Each offers unique opportunities: Riyadh is a business center, Jeddah is the gateway to the Red Sea, and Neom is an ambitious project of the future. Decide whether proximity to business, the sea or new technology is more important to you.

Step 2: Due diligence and working with a local real estate agent. Hire an experienced agent to help you understand local laws and procedures. He or she will conduct a due diligence on the property to avoid unpleasant surprises in the future. Don't hesitate to ask questions and get all the details.

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Step 3: Closing the deal and executing the documents. Once you have chosen a suitable property, the stage is set for closing the deal. Make sure that all the documents are in order and you are provided with all the necessary guarantees. This is an important point that will help you avoid legal problems in the future.

Step 4: Applying for a residence permit after buying a property. Once the transaction is finalized, you can apply for a residence permit. Make sure you have all the necessary documents, including proof of purchase of the property. The process usually takes some time, but it is worth the wait.

By following these steps, you will not only be able to buy real estate in Saudi Arabia, but also get the opportunity to enjoy life in this amazing country. Let us now look at the legal aspects and peculiarities of buying real estate by foreigners.

Legal aspects and peculiarities of buying real estate by foreigners in Saudi Arabia

When it comes to foreigners buying real estate in Saudi Arabia, it is important to understand that there are certain rules and legislation in place. In recent years, the government has implemented a number of changes aimed at simplifying the process for foreign investors. However, despite this, it is important to be aware of all the nuances.

Specific areas for buying real estate

First, foreigners can only purchase real estate in certain areas. In major cities such as Riyadh and Jeddah, there are many areas where the purchase of real estate is available to foreigners. For example, in Riyadh these may be new residential developments and commercial areas, while in Jeddah these may be areas along the coast. However, in some places, such as historical centers or strategically important areas, there are restrictions. Therefore, before buying, be sure to check whether your chosen property is suitable for foreign investors.

Registration of ownership rights

Secondly, the process of titling a property requires care. You will need to register the transaction with the local land registry, which guarantees your ownership of the property. This step is critical to secure your investment and protect your rights as an owner. By working with an experienced real estate agent, you can avoid most of the legal issues and mistakes associated with the paperwork.

No mortgage lending for foreigners

It is also worth bearing in mind that Saudi Arabia does not have a mortgage lending system for foreigners. This means that you will need to have the full amount to purchase the property. While this may sound complicated, this approach provides greater financial stability and no debt. Investors who can afford a lump sum purchase often note that it avoids the additional costs of interest and fees associated with loans.

Compliance with local laws and regulations

In addition, it is important to consider that once you buy a property, you will need to comply with local laws and regulations. For example, if you plan to rent out the property, you will need to register tenants and comply with all taxation requirements. It is also worth remembering that if you sell the property in the future, there may be tax liabilities that you also need to consider.

Legal support

Finally, it is recommended to get legal support at all stages of the transaction. Experienced lawyers will help you understand local laws, check all documents and ensure that your interests are protected. This is especially important if you are buying real estate abroad for the first time and are not familiar with local practices.

In conclusion, buying real estate in Saudi Arabia for foreigners is a process that requires care and preparation. By taking into account all legal aspects and peculiarities, you will be able to make your investment safe and profitable.

Comparison of residence permits in Saudi Arabia with similar programs in other countries

Now let's compare the program of obtaining a residence permit through real estate investment in Saudi Arabia with similar offers in other countries such as the UAE, Turkey and Portugal.

Thus, each country has its pros and cons, and the choice depends on your personal preferences and financial possibilities. It is important to carefully analyze all options before making a decision.

Potential risks and how to avoid them

As with any investment, buying real estate in Saudi Arabia comes with certain risks. Therefore, it is important to be prepared for them and know how to minimize them.

By following these tips, you will be able to minimize the risks and make your real estate investment in Saudi Arabia as safe and profitable as possible. Now let's move on to the stories of successful investors who have already taken this step.

Stories of successful investors

Let's take a look at real examples of foreign investors who have already taken advantage of the opportunities offered by Saudi Arabia and obtained a residence permit through the purchase of real estate. These stories are inspiring and show that investing in this country can be really successful.

Interesting case - is a couple from the UK, John and Emily, who were looking for a new place to live after retirement. They chose Jeddah, where they bought an apartment with a sea view. Their decision was based on their desire to live in a safe and comfortable country with a high standard of living. After purchasing the property, they issued a residence permit and now enjoy the beaches of the Red Sea as well as the local culture and cuisine. Emily notes that they feel at home here and have even made new friends among the locals.

Also worth mentioning investor group from China who decided to invest in commercial real estate in Neoma. They saw great potential in this ambitious project and purchased several office spaces. Thanks to this, they not only obtained a residence permit, but also became part of one of the most promising projects in the region. The investors note that Saudi Arabia offers unique business opportunities and they are glad they made the right choice.

These stories show that buying real estate in Saudi Arabia can open up new horizons for life and business. Each of these investors was able to not only support themselves and their families, but also contribute to the development of the country.

Conclusion

Saudi Arabia is becoming an increasingly attractive destination for investors and immigrants due to its economic reforms and openness to foreign nationals. Obtaining a residence permit through the purchase of real estate is a great way not only to support yourself and your family, but also to become part of a dynamic society.

If you are ready to take a step towards a new life and take advantage of all the benefits Saudi Arabia has to offer, don't miss the opportunity to invest in the future. For more information and advice, please contact our company and we will be happy to help you on this exciting journey!

Don't miss the chance to change your life - get a residence permit in Saudi Arabia today!