The updated White Land and Vacant Real Estate Tax Law now covers undeveloped urban land and empty buildings to curb land hoarding and support sustainable urban growth.
Saudi Arabia published the implementing regulations for the White Land Tax in the Official Gazette on 22 August 2025, following the publication Resolution No. 758 and Royal Decree No. M/244 issued in May 2025 which made revisions to the initial “White Land Tax Law”.
The updated White Land and Vacant Real Estate Tax Law now covers undeveloped urban land and empty buildings to curb land hoarding and support sustainable urban growth.
The regulations introduce key definitions and rules for applying the white land tax, including terms such as “land construction,” “land development,” and “taxpayer.” A taxpayer is any individual or legal entity (excluding state-owned property) holding registered ownership at the time of tax invoice issuance, including successors, with each joint owner taxed according to their share.
The scope of application is determined city by city, with boundaries published by the Ministry of Municipalities and Housing, and land must meet specific criteria—undeveloped, within designated urban limits, no less than 5,000 square meters, and within ministerially defined uses—to be subject to tax.
Land is categorised into five priority tiers, with annual tax rates ranging from 10% (highest priority) to 2.5% (low priority), while non-priority land is exempt but still counted toward ownership thresholds. Taxation may be suspended if the land no longer qualifies, obstacles prevent development, or development is completed within the statutory period.
Tax invoices must contain detailed ownership, legal, and payment information, and notifications are valid when delivered via verified electronic or official channels. Taxes are payable within one year of invoice issuance (90 days for retroactive invoices), with refunds granted if development is completed in time; taxes must also be settled before ownership transfer.
Violations and penalties will be issued by ministerial decision following committee approval.
Earlier, Saudi Arabia raised the annual fee on unused land from 2.5% to as much as 10% of the property’s value, following Cabinet-approved reforms to the White Land Tax Law. The changes, enacted on 29 April 2025, represent the largest update to the law since its introduction in 2016.
