JEDDAH: As part of changes authorised by the Cabinet to address market imbalances, Saudi Arabia increased the yearly tax on undeveloped land from 2.5 percent to up to 10 percent of property value. For the first time, levies on long-vacant structures and updated land-size thresholds for taxation are included in the White Land Tax Law’s modifications. The Cabinet approved the amendments on April 29, making them the biggest revisions to the law since it was first introduced in 2016.
They are a part of a larger initiative to solve supply-demand mismatches, combat speculation, and speed up growth in the Kingdom’s real estate market, which has been under increasing pressure in major cities like Riyadh. In keeping with Vision 2030, the measures complement larger initiatives to reduce speculation, increase land use, and improve access to affordable housing.
“The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent,” stated Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail in a post on his official X account. Both individual plots and continuous holdings in selected metropolitan areas must have a minimum land area of 5,000 square meters in order to be eligible for the charge, according to the updated framework.
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