Guide to Real Estate and Investment Laws in Syria

In recent years, real estate and investment laws in Syria have undergone a series of amendments and legislations that have reshaped the investment and real estate environment in the country. From Investment Law No. 18 of 2021, through updates to real estate development and amendments to property taxes, to Decree 114 of 2025, understanding these laws has become essential for every investor or real estate developer seeking to make safe and well-informed decisions in the Syrian market.

Why is understanding real estate and investment laws essential for successful investment in Syria?

Understanding real estate and investment laws in Syria is the main guarantee for protecting capital and minimizing legal risks. It allows the investor to verify the integrity of the property record and ensure it is free from restrictions such as seizure or mortgage, and to avoid regulatory violations and time limits that could lead to license withdrawal or financial penalties, in addition to understanding the special conditions for foreign ownership to prevent contract annulment.

On the other hand, this knowledge ensures the highest possible returns by fully benefiting from the extensive tax and customs incentives provided by Investment Law No. 18 of 2021 and its amendments, as well as knowing the legal mechanisms for bringing in capital and repatriating profits abroad, and seizing opportunities in new and promising urban planning areas before their prices rise.

Investment Law No. 18 of 2021: A Turning Point in the Investment Environment

Investment Law No. 18 of 2021 and its subsequent amendments (such as Law No. 2 of 2023 and Decree No. 114 of 2025) represent a fundamental turning point in the Syrian investment environment, as it abolished previous scattered legislations and unified the legal framework for projects.

Its strategic importance lies in establishing "special economic zones" that include real estate development and reconstruction areas, in addition to simplifying administrative procedures through investor service centers affiliated with the Investment Authority to reduce bureaucracy and facilitate the granting of investment licenses to both Syrian and foreign investors.

Moreover, this law offers an unprecedented package of financial incentives and legal guarantees that protect property rights. It grants full customs exemptions on imports of machinery and production lines, permanent tax exemptions up to 100% for agricultural and livestock production projects, and extended discounts for development and industrial projects.

The law also guarantees the freedom to transfer profits and external funds, and allows for additional incentive tax discounts linked to the volume of local employment, making it the main driver for launching reconstruction projects and sustainable development.

What is the impact of Decree 114 of 2025 on reconstruction and real estate investment projects?

Legislative Decree No. 114 of 2025 has a direct positive impact on reconstruction and real estate investment projects in Syria through its substantial amendments to Investment Law No. 18 of 2021 to enhance infrastructure and housing projects.

This impact is mainly evident in the article that grants the Supreme Council for Economic Development the authority to allocate lands from state private property to investors based on stimulating economic foundations and tangible project quality, thus solving the problem of securing the necessary real estate for building residential suburbs and large construction materials factories.

The decree also obliges public entities to adhere to a strict time frame not exceeding 30 working days to grant the comprehensive investment license for all permits and approvals through investor service centers (the one-stop shop), eliminating bureaucracy and protecting real estate developers from time wastage, exchange rate fluctuations, and construction material costs during waiting periods.

What is the impact of Decree 114 of 2025 on reconstruction and real estate investment projects?

Legislative Decree No. 114 of 2025 (issued by President Ahmed Al-Shara’ amending Investment Law No. 18) has a positive and radical impact on the reconstruction and real estate development sector by providing unprecedented customs facilities and centralized land management. It exempts all machinery, vehicles, devices, and equipment necessary for implementing development and real estate investment projects from all customs and financial fees and non-customs additions, greatly reducing construction establishment costs.

The decree also grants the "Supreme Council for Economic Development" broad powers to allocate lands from state property to investors according to stimulating economic principles, solving the major issue of securing the necessary real estate spaces for suburban cities and large residential projects. It also obliges public entities to a decisive deadline not exceeding 30 days to process licensing requests through the one-stop shop to avoid capital erosion due to price fluctuations.

On the other hand, the decree provides legal immunity and strong security guarantees that attract international companies and foreign capital for reconstruction. This is evident in granting foreign real estate developers the right to 100% ownership of projects without requiring a local partner, along with strict judicial protection prohibiting precautionary seizure, receivership, or expropriation except by a final court ruling and in exchange for fair compensation at the prevailing price, which may be transferred abroad in foreign currency.

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Real Estate Sales Law No. 15 of 2021

Real Estate Sales Law No. 15 of 2021 is the legislation regulating the mechanism for collecting taxes and financial fees on the sale, donation, and rental of real estate in Syria.

The law is based on the philosophy of the "prevailing value" recorded in an automated financial system as an alternative to the price written in contracts, to ensure specific tax standards and limit human intervention and financial evasion.

This law has seen a package of important facilities and executive decisions to ease the financial and routine burdens on property owners and investors:

Specific tax rates for real estate sales

The tax is calculated as a fixed percentage of the prevailing value of the property, which was reduced by 30% by a decision from the Ministry of Finance to ease the tax burden and reach an effective rate of about 0.7% for residential properties.

Leasing real estate units is subject to an annual income tax also based on the approved value.

Recent executive updates and facilities

• Tax cancellation in case of withdrawal: The Ministry of Finance exempted taxpayers from the real estate sales tax entirely in case of "withdrawal" (failure to complete the sale or mutual agreement to retract).
• Temporary reduction of the tax base: An exceptional decision was issued to reduce the prevailing value of properties by 30% as adopted by the financial directorates, leading to a tangible decrease in taxes paid upon transfer of real estate ownership.
• Flexibility in commercial property use: A commercial real estate unit is treated as residential (with a 1% tax rate instead of 3%) if its use for residential purposes is proven for more than 3 consecutive years before the sale date.
• Right to judicial objection: The law grants taxpayers the right to object to the assessed tax value within 30 days from notification, provided the tax is paid first with a 1% deposit refundable if the objection is upheld.

Law No. 6 of 2022 and its tax amendments

Law No. 6 of 2022 in Syria stipulates amending the percentage of the "cash contribution to support sustainable development" to reduce the tax and financial burden on citizens and investors when documenting real estate transactions.

The direct impact of this law and its amendments is reflected in the following key points:

• Reduction of real estate fees: The law reduced the cash contribution rate to support sustainable development to only 10% (instead of the previous high rates that reached 30%), including this reduction in transfer, transition, and real estate registration fees, in addition to the relevant stamp duty.
• Facilitating documentation of lease contracts and transactions: This amendment contributed to reducing the total cost associated with registering real estate deeds and documenting annual lease contracts at financial departments and municipalities, encouraging the registration of rights and limiting real estate evasion and informal documentation.
• Integration with the real estate sales system: This law directly intersects with the Real Estate Sales Law (No. 15 of 2021) and subsequent tax laws, aiming to reduce cumulative additional fees and taxes imposed above the "prevailing value" of properties, giving the residential and commercial real estate market greater flexibility when transferring ownership and exchanges.

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What are the laws regulating foreign ownership of real estate in Syria?

Law No. 11 of 2011

• Residency requirement in Syria and intentions: Law No. 11 of 2011 requires non-Syrians (Arab or foreign) to obtain prior authorization from the Minister of Interior before owning any property, provided their residency in Syria is legal and for family housing purposes.
• Maximum ownership: Foreigners are allowed to own one built and completed property with a minimum floor area of 140 square meters. Ownership of vacant land or undivided shares is not permitted.
• Prohibition of ownership in border areas: Non-Syrians are strictly prohibited from owning property in border areas, coastal lines, and areas under certain regulations, except in exceptional cases and with approval from the Minister of Defense.
• Restrictions on disposal and sale: The law prohibits the foreign owner from transferring or disposing of the property by sale or gift before five years have passed since acquiring ownership and registering it in the land registry.

The relationship between ownership laws and modern investment legislations

• Abolishing ownership restrictions for investors: The modern legislative environment (such as Investment Law No. 18 of 2021 and its amending Decree No. 114 of 2025) has completely surpassed the conditions of Law No. 11, granting foreign investors the right to 100% real estate ownership of projects.
• Facilitating areas and economic activities: Investment legislations have allowed foreign real estate developers and businessmen to own vast vacant lands and multiple properties to build suburban cities or industrial, tourism, and agricultural projects without being limited to a single residence.
• Direct allocation from state property: Decree 114 of 2025 granted the Supreme Council for Development the authority to allocate lands from state property to foreign investors, with immunity preventing expropriation except by a final court ruling and fair compensation at the prevailing price, allowing its transfer abroad.

How did the legislations shift from combating land monopoly to encouraging urban development?

Real estate and investment legislations in Syria have shifted from the stage of "stagnation and combating monopoly" to the stage of "support and encouragement of urban development" through a strategic transformation that included legislative, financial, and administrative structures, as follows:

From restricting areas to partnership with developers

• Previous phase (limiting monopoly): Old laws (such as the demarcation and liberation law and previous agricultural laws) focused on preventing large areas of land from being accumulated by individuals or specific entities and combating real estate speculation, leading to fragmented ownership and discouraging large capital from entering the real estate market.
• Modern legislative transformation: The state adopted a flexible vision through real estate development laws and Investment Law No. 18 of 2021 and its amendments, encouraging real estate developers (Syrian and foreign) to own vast areas of vacant land to establish suburban cities and integrated urban complexes.

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Smart management of state property and urban planning

• Previous phase (prohibition of disposal): State private property was protected by strict restrictions preventing its exploitation or allocation to the private sector, leaving vast areas of land inside and outside regulatory plans uninvested.
• Modern legislative transformation: Legislative Decree No. 114 of 2025 opened the door to "allocation of lands from state private property to investors" based on stimulating economic principles, to secure land as a basic input for reconstruction and infrastructure projects, transforming the state from a prohibitive regulatory entity to a facilitating partner and provider of investment opportunities.

Financial substitution: from unproductive fees to smart incentives

• Previous phase (evasion and stagnation): Previous laws imposed high cumulative fees on the transfer of real estate ownership, prompting investors to use informal documentation (external powers of attorney) and causing stagnation in real estate development and loss of treasury revenues.

• Modern legislative transformation: The tax system was completely reformed, with Real Estate Sales Law No. 15 of 2021 setting clear and fair rates based on the automated "prevailing value".

How have modern legislations enhanced the protection of investors and real estate developers?

Modern legislations in Syria have enhanced the protection of investors and real estate developers by providing a safe and stable legal environment based on judicial immunity and simplified procedures to ensure project continuity.

Judicial immunity and sovereign guarantees

• Prohibition of arbitrary seizure: Decree 114 of 2025 expressly prohibits precautionary seizure, judicial receivership, or expropriation of investment projects except by a final court ruling
  
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• Compensation at prevailing price: In case of expropriation for public interest, the laws guarantee the developer fair compensation equal to the actual prevailing value of the property at the time of expropriation, with the possibility of transferring this compensation abroad in foreign currency.

• Fast-track arbitration: The legislations have enabled the creation of special and independent arbitration centers for the swift settlement of real estate and investment disputes, away from lengthy court litigation processes.

What are the most important real estate and investment laws that investors should follow in the future?

• Real Estate Sales Law No. 15 of 2021: which sets taxes based on the automated "prevailing value" of properties (which has recently seen reductions in its tax base to stimulate the market).
• Law No. 6 of 2022: which reduced the cash contribution fees for sustainable development to 10% to facilitate documentation of ownership and lease contracts.
• Urban Planning and Cities Law No. 23 of 2015: regulating land planning and subdivision mechanisms, the establishment of new regulatory zones, and the procedures for free allocation for public facilities, which is essential for seizing promising real estate opportunities before their development.

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How have modern laws affected the Syrian real estate market?

The legislative package issued between 2021 and 2025 has brought about a radical transformation in the structure and performance of the Syrian real estate market, moving it from chaos and informal documentation to institutionalization and investment stimulation through:

• Restructuring prices and reducing tax evasion
• Reducing establishment costs and launching reconstruction projects
• Attracting foreign capital and institutionalizing the market