Saudi Arabia Expands White Land Tax To Vacant Properties
- brg_news_room
- 2 days ago
- 1 min read
Saudi Arabia: Saudi Arabia has begun enforcing an updated version of its “white land” tax, following directives from Crown Prince and Prime Minister Mohammed bin Salman. The revised rules extend the levy to include vacant buildings in addition to undeveloped land. Plots or groups of plots with a combined area of 5,000 square metres or more within urban zones will face an annual tax of up to 10 per cent of their market value. Vacant properties will also be subject to an annual tax based on comparable rental values, capped at 5 per cent of market value, with the possibility of rising to 10 per cent upon cabinet approval. State-owned properties remain exempt.
Real estate experts said the measure is intended to reduce land hoarding, encourage development, and increase market activity. The rules are expected to push landowners to either develop or sell unused assets, thereby boosting supply and stabilising prices. Analysts noted that applying the tax to vacant buildings addresses shortages in ready-to-use properties, while the 5,000 square metre threshold helps simplify compliance. The government aims to accelerate development, improve efficiency in the property sector, and support long-term price stability.
Source: Asharq Al Awsat
