JEDDAH: Saudi Arabia has significantly amended its White Land Tax Law, raising the annual levy on undeveloped land from 2.5 percent to up to 10 percent of the property’s value.
The reforms, approved by the Cabinet on April 29, aim to curb land speculation, increase land and property utilization, and address real estate imbalances particularly in high-demand areas such as Riyadh.
For the first time, the revised law expands its scope to include long-vacant, ready-to-use buildings that remain unused without valid justification.
These properties will now face an annual tax of up to 5 percent of their estimated rental value, as detailed in upcoming regulations.
The amendments also revise the minimum land-size threshold for taxation to 5,000 square meters, covering both individual plots and contiguous holdings within designated urban areas.
Phased implementation, clearer tax criteria, improved enforcement, and grievance channels are also part of the overhauled framework.
Housing Minister Majid Al-Hogail stated that the updated law encourages the use of vacant properties and adjusts fees and targeted zones to better support urban development.
The changes align with Vision 2030 goals to expand affordable housing, boost development, and ensure more efficient land use.
Ministry spokesperson Saif Al-Suwailem told Al-Ekhbariya that executive regulations for vacant property taxation will define how the new rules are implemented.
He emphasized that the changes are expected to stimulate residential project development and improve supply-demand balance in the market.
The move follows growing pressure on Saudi Arabia’s urban housing markets, especially in Riyadh, where rising land prices and rental costs have affected affordability.
In response, the government recently lifted development restrictions in parts of northern Riyadh.
According to the report, executive regulations for the amended White Land Tax Law will be issued within 90 days of publication in the official gazette, while those governing vacant property taxation are expected within one year.
[Reported by Saudi Press Agency]
