Issuance of white land fee bills begins today in Riyadh

The issuance of white land fee bills for lands subject to the levy in Riyadh began today, Jan. 1.

Landowners may apply for an additional development grace period once the fee is assessed on their land. The additional period is granted upon approval by the competent committee in accordance with the approved regulations. If development is not completed within the additional period, the fees will become payable for the entire duration.

Minister of Municipalities and Housing Majed Al-Hogail had previously announced the geographic zones subject to white land fees in Riyadh, along with the applicable annual fee rates on undeveloped land or groups of undeveloped land within those zones.

The first tier, classified as the highest priority, is subject to an annual fee of 10% of the land’s value. The second tier, designated as high priority, carries an annual fee of 7.5% of the land’s value. The third tier, considered medium priority, is subject to an annual fee of 5% of the land’s value.

The fourth tier, classified as low priority, carries an annual fee of 2.5% of the land’s value. The fifth tier, which falls outside the priority zones, is not subject to an annual fee and is included in the total white land holdings of the taxpayer within the city limits.

The Ministry of Municipal, Rural Affairs and Housing said the implementation of white land and vacant property fees aims to encourage the development of idle land, curb land hoarding, and increase real estate supply, contributing to market stability and the achievement of urban development and quality-of-life goals.

The ministry added that fee revenues will be redirected to housing projects, while the Itmam Center will provide support to landowners seeking to develop their properties.