Saudi Gazette report
RIYADH — Saudi Arabia has approved amendments to its White Land Tax Law, raising the annual levy on undeveloped land from 2.5% to 10% of its value and introducing, for the first time, an annual tax on long-vacant properties without justified use.
The changes, passed during Tuesday’s Cabinet session, are aimed at boosting property development and increasing housing supply, as the government works to address rising real estate prices.
The Ministry of Municipal and Rural Affairs and Housing announced plans to offer housing units across various regions in partnership with private developers, priced between SR250,000 and SR1.2 million.
The initiative targets raising Saudi homeownership to 66% this year, according to Minister Majed Al-Hogail during a recent government press conference.
The amendments also unify the tax application stages, with the annual tax now covering individual or combined landholdings of 5,000 square meters or more within designated urban zones.
Previously limited to residential and commercial land, the scope has expanded to include any undeveloped land suitable for development.
Regulations for white lands will be issued within 90 days, while rules governing vacant property taxation are expected within a year.
Minister Al-Hogail acknowledged the sharp rise in real estate prices in Riyadh but noted that Crown Prince Mohammed bin Salman had issued swift and firm directives to ensure property prices align with industrial, agricultural, commercial, and housing growth.