RIYADH — The White property Tax Law in Saudi Arabia has been amended to increase the yearly fee on undeveloped property from 2.5% to 10% of its value. Additionally, an annual tax on long-vacant properties without justifiable use has been introduced for the first time. As the government attempts to address rising real estate prices, the reforms were approved during Tuesday’s Cabinet session with the goal of promoting real estate development and expanding the supply of homes.
In collaboration with private developers, the Ministry of Municipal and Rural Affairs and Housing announced plans to provide housing units in many locations, with prices ranging from SR250,000 to SR1.2 million. During a recent government news conference, Minister Majed Al-Hogail stated that the effort aims to increase Saudi homeownership to 66% this year. The yearly tax now applies to individual or joint landholdings of 5,000 square meters or more inside defined urban zones, further unifying the tax application processes.
The definition has been broadened to encompass any undeveloped property that is appropriate for development, as opposed to just residential and commercial land. White land regulations will be released in ninety days, and unoccupied property taxation regulations should follow in a year. Although Crown Prince Mohammed bin Salman has issued prompt and strict directions to guarantee that property prices line with industrial, agricultural, commercial, and housing expansion, Minister Al-Hogail recognised the steep increase in Riyadh real estate prices.
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