Buying, selling or leasing property in Kuwait is decided by a short list of statutes and by one practical fact: ownership moves only when the transfer is registered. The Civil Code (Decree-Law No. 67 of 1980) sets the contract rules, the Registration Law (Decree No. 5 of 1959) controls title, Decree-Law No. 74 of 1979 limits who may own, and Law No. 35 of 1978 governs leases. We read those texts as we apply them for buyers, investors, heirs and landlords, including the 2025 amendments for heirs and companies.
The statutory framework: Civil Code, Registration Law and the special laws
The Civil Code, Decree-Law No. 67 of 1980, contains the general rules: sale in Articles 454 to 519, ownership and co-ownership in Articles 810 to 874, lease in Articles 561 to 648 and the official mortgage in Articles 971 to 1026. Four special regimes sit beside it: the Registration Law, Decree No. 5 of 1959, amended by Decree-Law No. 73 of 1979; Decree-Law No. 74 of 1979 on ownership by non-Kuwaitis; Law No. 35 of 1978 on the lease of real estate; and Law No. 125 of 2023 on real estate agency.
A fifth text matters for how title is recorded. Law No. 21 of 2019 on the in rem register system, in Article 2, provides for a written and electronic register with a separate sheet for every property showing its rights, boundaries and data, kept by the Real Estate Registration Department. In every file we first establish which record holds the property, because a document that satisfies one regime can still fail another.
Who may own real estate: citizens, GCC nationals and everyone else
The starting point of Decree-Law No. 74 of 1979 is that the right to own real estate in Kuwait belongs to Kuwaitis, and the explanatory memorandum to the 2025 amendment confirms that this covers full ownership, bare ownership and usufruct. Nationals of the Gulf Cooperation Council states are treated as Kuwaitis for ownership of land and built property under Law No. 1 of 2004, as amended by Law No. 18 of 2009. Arab nationals may be granted ownership of a single property in a planned residential area by decree, for the private housing of the applicant and family, on conditions that include permanent lawful residency, income sufficient to buy it, a maximum area of 1,000 square meters, no other property in Kuwait and reciprocity (Article 3).
Other foreign individuals have no general route to buy residential property. A transaction concluded against the decree-law is void, the registry may not record it, and the memorandum describes the nullity as a matter of public order that the court raises by itself. Article 6 of the Registration Law lets the department establish every applicant's nationality from a passport or another official document. Our standing advice is to test nationality and the legal route before any deposit is paid.
Inheritance after Decree-Law No. 7 of 2025
Decree-Law No. 7 of 2025, published in February 2025, replaced the second paragraph of Article 4 of the 1979 decree-law. An Arab heir who inherits real estate, or part of it, and owns no other property must now dispose of it within two years of the date it devolves on him, or it is sold on his behalf by force, unless a decree exempts him. The earlier period was one year. The amendment also exempts the heir from the duty to sell when ownership passes to him by inheritance from his Kuwaiti mother.
Registration remains the gate. Article 10 of the Registration Law requires the right of inheritance to be registered where the estate includes real rights in real estate, and no disposal by an heir may be registered before that. For the mother's-estate exemption we assemble the inheritance deed, proof of the mother's nationality, the title documents and evidence that ownership devolved in full, since the amendment speaks of ownership passing by inheritance and mixed or partial devolution needs a separate analysis.
Companies, funds and investment entities: the amended Article 8
Article 8 of the 1979 decree-law originally barred companies with non-Kuwaiti partners from owning real estate. Article 2 of Decree-Law No. 7 of 2025 added two paragraphs. Companies with non-Kuwaiti partners that are listed on a licensed Kuwaiti exchange, and licensed real estate funds and investment portfolios, may own real estate where dealing in real estate is among their purposes, under rules to be set by decree. On liquidation, real estate in kind is distributed only to Kuwaitis and others receive its cash value.
The second added paragraph allows entities licensed under Law No. 116 of 2013 on direct investment to be authorized to own property needed for their activities, for their management or for the housing of investors or employees, but never for speculation, with a decree to fix the areas and the limits on disposal and mortgage. Decree No. 195 of 2025 implements the listed-company and fund route: real estate dealing must be among the entity's activities, land and units designated for private housing are categorically excluded, and GCC equal treatment and central bank-supervised entities are preserved. We confirm the status of the implementing decree for the investment-entity route before advising on it.
Registration decides ownership: Articles 7 to 12 of the Registration Law
Article 7 of the Registration Law is the rule on which every Kuwaiti property file turns. Acts that create, transfer, change or extinguish a principal real right in real estate must be registered, and without registration the right is not created, transferred, changed or extinguished, either between the parties or against third parties. An unregistered act produces only personal obligations. Article 8 applies the same rule to final judgments and partition, and Article 9 requires a mortgage to be entered by inscription.
Article 12, as amended by Decree-Law No. 73 of 1979, sets the procedure. The application goes to the registration office where the property lies, after identity, capacity and nationality are verified, with the title deed and either a copy of the agreement recorded in the broker's book or, where no broker acted, a declaration signed by the parties on the Ministry of Justice form. If an earlier applicant does not cure the deficiencies noted within fifteen days, a later complete application is approved.
Preliminary contracts and unregistered sales
Many Kuwaiti purchases start with a customary contract signed through an agent. Under Articles 70 and 71 of the Civil Code, parties to a preliminary contract must conclude the final one on the same terms within the agreed time, and if one refuses, the other may ask the court to declare the preliminary contract valid and enforceable. That judgment stands in for the final contract, without prejudice to what the law requires for registration. Article 11 bis 1 of the Registration Law requires such claims to be registered or noted on the register.
The risk of leaving a sale unregistered is concrete. Under Article 7 the buyer holds only a personal right against the seller, so a creditor or a mortgagee of the seller can still act on the property. A Kuwaiti Court of First Instance ruling reported in April 2026 upheld a buyer's customary contract for an apartment where the seller had promised registration and failed. Article 11 bis 3 gives the buyer priority against later acquirers only from the date the claim is registered or noted.
Real estate agency and the end of irrevocable powers of attorney: Law No. 125 of 2023
Law No. 125 of 2023 defines real estate agency in Article 1 as a contract by which a principal puts another person in his place in a legal act that transfers ownership of real estate, with the effects accruing to the agent or to a third party. Article 2 allows any owner to appoint an agent under the Civil Code and the Registration Law, but provides that such an agency may never be irrevocable, an exception to the Civil Code.
Article 4 gave parties to irrevocable real estate agencies already in force one year from the law's effective date to regularize their position, failing which the agency is treated as a final sale contract, without prejudice to the rights of good-faith third parties and the State. Press commentary in January 2025 questioned whether the year ran from publication or from the regulation, so we check the status in each case. We never accept an irrevocable agency as a substitute for a registered sale.
Deposit, conditions and the seller's duties in the sale contract
Articles 74 to 77 of the Civil Code regulate the deposit. A deposit paid when the contract is made gives each party a right to withdraw, unless a contrary intention appears or custom provides otherwise. A payer who withdraws loses the deposit, and a recipient who withdraws returns it and pays the same amount again, without regard to actual harm. We therefore state in writing whether a payment is a deposit, an advance on price or a reservation fee.
The seller's obligations are set out in Articles 466 to 499 of the Civil Code, and Article 509 deals with the sale of property that the seller does not own. We build the contract around evidence: the title deed, the property description, a clear allocation of registration costs, release of any mortgage before payment, and a price schedule that follows registration events instead of calendar dates.
Title checks: encumbrances, notations and the property record
Before payment we trace the record. Mortgages are entered by inscription under Article 9 of the Registration Law, claims affecting the property are registered or noted under Article 11 bis 1, and the Ministry of Justice offers an online inquiry that shows the details in the ownership document and whether the property is mortgaged. Under Article 10 an heir cannot dispose of inherited property until the inheritance is itself registered, so a seller who acquired by inheritance must show that step.
We also compare what the record says with the property on the ground: plot and unit references, area, boundaries and building description. A discrepancy between the sale documents and the registry sheet, whether under the 1959 deed system or the in rem register of Law No. 21 of 2019, should be settled before signing, because the registration office will test the application against its own record.
Leasing under Law No. 35 of 1978: written terms, rent and use
Law No. 35 of 1978 applies to real estate let for housing or other purposes, including vacant land, but not agricultural land (Article 1). Under Article 5, leases concluded after the law must be in writing. Article 7 requires the landlord to deliver the property fit for its agreed use, and Article 8 makes the landlord responsible for maintenance, including roofs, stairs, lifts and water pipes, with the tenant able to obtain court authorization to repair after notice and recover the cost from the rent. Articles 12 and 14 bar changes to the property, subletting and assignment without the landlord's consent, the latter in express writing.
Rent is payable on the agreed dates under Article 10, and a tenant who offers rent legally and deposits it with the enforcement department within twenty days of the due date is treated as paying on time. Under Article 11 the agreed rent binds both sides, but if the parties do not agree on the rent, either may invoke the rent of a similar property, but only once every five years; where the lease term is longer, the agreed rent applies until the term ends. Article 16 keeps the lease binding on a new owner if the tenant is in occupation at the transfer. The Registration Law, in Article 11, requires leases above ten years to be registered. Article 11 bis, added by Decree-Law No. 95 of 2024, lets the parties agree that a written, notarized lease with a fixed rent due on a fixed date is an enforceable instrument for unpaid rent, after notice to the tenant and a certificate that the rent was not deposited. Under Article 26, appeals from the rental circuits go to the Court of First Instance sitting as an appeal court.
Ending a lease and resolving disputes: Articles 19 and 20
A lease ends at the end of its term under Article 19. If the tenant stays with the landlord's knowledge and without objection, the lease renews on the same terms for periods equal to the rent period. A party who wants the property back must give notice of fifteen days where the term does not exceed three months, one month where it does not exceed six months and two months otherwise, by formal notice or registered card with acknowledgment of receipt, unless the contract fixes a different notice.
Article 20 limits eviction to listed grounds, even at the end of the term, subject to later amendments. The grounds include non-payment within twenty days of the due date, with a narrow court discretion where the tenant proves a serious excuse and pays all rent due by the first hearing; unauthorized subletting or assignment; use contrary to the lease; closure of commercial premises for more than six months without an accepted excuse; a building at risk of collapse; redevelopment by the owner; and the owner's own housing need. Law No. 15 of 2020 created a single-judge rental division with exclusive jurisdiction over lease disputes regardless of value.
What we review on a Kuwait real estate transaction
When our Kuwait office reviews a transaction we work through the same sequence. We confirm the nationality and status of each buyer against Decree-Law No. 74 of 1979 and its 2025 amendments, trace title and encumbrances through the registry, test every signatory's authority and any agency under Law No. 125 of 2023, read the contract against Articles 70, 71 and 74 to 77 of the Civil Code, and plan registration under Articles 7 to 12 of the Registration Law. For leases we check Law No. 35 of 1978, registration above ten years and the exit rules.
See also: our Kuwait company formation guide and our Gulf company formation comparison, plus our commercial and corporate practice.
Frequently asked questions
Can a foreigner buy property in Kuwait?
Not as a general rule. Decree-Law No. 74 of 1979 reserves ownership to Kuwaitis, treats GCC nationals as Kuwaitis under Law No. 1 of 2004, and allows Arab nationals, by decree under Article 3, a single property in a planned residential area for the private housing of the applicant and family, up to 1,000 square meters, subject to permanent lawful residency, sufficient income, no other property in Kuwait and reciprocity. Transactions against the decree-law are void and cannot be registered.
Does a signed sale contract make me the owner?
No. Article 7 of the Registration Law provides that without registration the right is not transferred, between the parties or against third parties, and the contract creates only personal obligations. Register the transfer, or file and register a claim for validity under Articles 70 and 71 of the Civil Code if the seller refuses.
I inherited a house from my Kuwaiti mother and I am not Kuwaiti. Must I sell?
Under Article 4 as amended by Decree-Law No. 7 of 2025, an Arab heir who owns nothing else must dispose within two years, but is exempt where ownership comes by inheritance from his Kuwaiti mother. Register the inheritance first under Article 10 of the Registration Law.
Can a company with foreign shareholders own real estate?
Only within Article 8 of the 1979 decree-law as amended: listed companies, licensed real estate funds and portfolios with real estate dealing among their purposes, and investment entities authorized under Law No. 116 of 2013 for operational or staff housing, never for speculation. Decree No. 195 of 2025 excludes private housing land.
Is an irrevocable power of attorney a safe way to buy?
No. Article 2 of Law No. 125 of 2023 prohibits irrevocable real estate agencies, and Article 4 converted existing ones into final sale contracts if they were not regularized, subject to good-faith rights. Insist on a registered sale and verify the agent's authority.
What happens to the deposit if I change my mind?
Under Articles 74 and 75 of the Civil Code, a deposit allows either party to withdraw: the payer who withdraws loses it, and the recipient who withdraws returns it and pays the same amount again, unless the contract or custom says otherwise.
How much notice ends a lease in Kuwait?
Article 19 of Law No. 35 of 1978 requires fifteen days where the term is up to three months, one month up to six months and two months beyond that, unless the contract sets a notice, and eviction is generally limited to the grounds in Article 20, subject to later amendments.
Can your firm review our property documents before we pay?
Yes. Our Kuwait office checks title, authority, contract terms and registration steps against the statutes above. Please contact us through our contact page.