Latest news with #WhiteLandTaxLaw
Zawya
01-05-2025
- Business
- Zawya
Saudi Arabia raises white land tax to 10%, introduces annual levy on vacant properties
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. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
01-05-2025
- Business
- Saudi Gazette
Saudi Arabia raises white land tax to 10%, introduces annual levy on vacant properties
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 limited to residential and commercial land, the scope has expanded to include any undeveloped land suitable for for white lands will be issued within 90 days, while rules governing vacant property taxation are expected within a 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.
Arab News
30-04-2025
- Business
- Arab News
Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties
JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances. The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation. The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016. They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom's real estate sector, which has seen mounting pressure in key cities such as Riyadh. The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030. In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: '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.' The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas. It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market. These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations. The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases. The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development. According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties. The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability. A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh. The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.
Arab News
05-04-2025
- Business
- Arab News
Shaping Riyadh's real estate market through key transformation measures
Crown Prince Mohammed bin Salman has initiated transformative measures to stabilize Riyadh's real estate market, responding to rising land, villa, apartment prices, and rental costs in the capital. This follows a detailed study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which identified challenges preventing Saudi nationals from owning or renting homes. The measures include easing land transaction and development restrictions in several areas of the city, allowing the sale, purchase, division, and subdivision of land, along with issuing building permits. This aims to address the housing crisis, with 81.48 sq. km now available for development, including 48.28 sq. km where previous restrictions were lifted. To meet rising housing demand, the government will supply 10,000 to 40,000 residential plots annually over the next five years. Priced at a maximum of SR1,500 ($400) per sq. meter, these plots will be available to married Saudi citizens or individuals over 25 who do not own property. Strict regulations will prevent resale, rental, or mortgage for 10 years, except when used for construction financing. If the land remains undeveloped, ownership will revert to the government, and the buyer will be reimbursed. The crown prince has directed the expedited release of proposed amendments to the White Land Tax Law within 60 days, aiming to foster the development of undeveloped land. To ensure fairness in the rental market, new regulatory measures will be introduced within 90 days to balance the interests of landlords and tenants. The General Authority for Real Estate and the Royal Commission for Riyadh City will closely monitor real estate prices, providing regular reports to assess the impact of these reforms and ensure long-term market stability. This initiative underscores the Kingdom's commitment to a more accessible, affordable, transparent, and sustainable real estate sector. Ihsan A. Buhulaiga, founder of Joatha Business Development, mentioned in an article published by Maal Digital that Riyadh's population has grown at an annual rate exceeding 5 percent, rising from 7.2 million in 2020 to 8.6 million in 2024. This surge has increased demand for residential housing, fueled by thousands of Saudi nationals seeking employment in Riyadh and the relocation of around 600 foreign regional offices to the city. As a result, a significant gap between housing supply and demand has led to a substantial rise in prices. I firmly believe that the crown prince's transformative initiatives will be key to stabilizing Riyadh's real estate market by supporting the introduction of additional residential units and land plots. These measures are also expected to narrow the gap between supply and demand for housing and land. Moreover, they should stabilize property prices, making land and housing more accessible and affordable for Saudi nationals. Additionally, these measures are likely to lead to adjustments and corrections in real estate prices. They will also protect the rights of real estate owners, buyers, and tenants, ensuring a more balanced and transparent sector. These transformative initiatives are expected to enhance the real estate market in Riyadh and beyond, fostering further investments and driving growth without causing disruption. This will strengthen one of the Kingdom's most vital economic sectors. As reported by Al Eqtisadiah newspaper, the real estate sector is the third-largest economic activity in the Kingdom, after oil and gas, and serves as a major driver of employment, particularly through construction-related efforts. Finally, these measures will support the Saudi government's goal of achieving 70 percent homeownership for citizens by 2030, in line with the Kingdom's Vision 2030. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
Trade Arabia
02-04-2025
- Business
- Trade Arabia
Saudi Crown Prince orders key real estate reforms in Riyadh
HRH Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia has issued directives for a series of comprehensive reforms aimed at stabilising land and rental prices in Riyadh, following an in-depth study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, reported the Saudi Gazette. The Crown Prince's directives are in response to the significant surge in land and rental prices witnessed in recent years. The measures are designed to achieve balance in the real estate sector and increase access to affordable housing, it stated. As part of the initiative, the Crown Prince ordered the lifting of restrictions on land transactions - including sales, purchases, subdivisions, and construction permits - in two key northern areas of Riyadh. The first spans 17 sq km, bounded by King Khalid Road and Prince Mohammed bin Saad Road to the west, Prince Saud bin Abdullah bin Jalawi Road to the south, Asmaa bint Malik Street to the north, and Al Arid District to the east. The second covers 16.2 sq km north of King Salman Road, bordered by Abi Bakr Al Siddiq Road and Al Arid District to the east, Prince Khalid bin Bandar Road to the north, and Al-Qirawan District to the west. These areas are in addition to previously released areas totaling 48.28 sq km bringing the total area released for development to 81.48 sq km. The Crown Prince also instructed the Royal Commission for Riyadh City to provide between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, based on market demand, said the Saudi Gazette report. These plots will be offered at prices not exceeding SAR1,500 per sq m to eligible Saudi citizens - specifically, married individuals or those aged 25 and above with no previous property ownership, it stated. Conditions include a ten-year restriction on selling, renting, or mortgaging the land - except for loans to build on it. If construction is not completed within the decade, the land will be reclaimed and its value refunded. Additional measures include the rapid implementation of proposed amendments to the White Land Tax Law within 60 days to enhance real estate supply, and regulatory actions within 90 days to ensure fair and balanced relationships between landlords and tenants, the report added.
