Al Akaria says 487,840 sqm land liable for white land tax

Saudi Real Estate Co. (Al Akaria) disclosed that 487,840 square meters (sqm), or 4.65%, of its Riyadh land bank falls under the scope of the white land fee system, according to a statement to Tadawul.

The company’s land portfolio in Riyadh covers a total area of 10.48 million sqm.

The land plots subject to white land levies are 141,560 sqm are classified under Tier 1 (highest priority - 10%), comprising several projects under development, and 346,280 sqm under Tier 4 (lowest priority - 2.5%).

Al Akaria said that the above areas will be processed in accordance with applicable regulations to determine the actual impact.

The announcement reflects the developer’s commitment to the highest standards of transparency and full compliance with relevant laws and regulations, the statement added.

According to data available with Argaam, the Ministry of Municipalities and Housing (MOMAH) announced in August the geographical zones subject to the white land tax in Riyadh.

The annual fee on undeveloped land — or groups of lands — within these zones is determined by priority level, with rates set at 10% of the land value for the highest-priority tier, 7.5% for high priority, 5% for medium priority, and 2.5% for low priority.

Land outside priority zones will be exempt, but still counted within the taxpayer’s total White Land holdings in the city.