Saudi Arabia has 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.
The revised policy now applies to long-vacant buildings and adjusts the minimum land size subject to taxation to 5,000 square meters in urban areas. Vacant properties will face an annual charge of up to 5% of their estimated rental value.
The reforms aim to reduce land hoarding, encourage development, and improve housing availability as part of the Kingdom’s Vision 2030 goals. The government will issue detailed regulations within 90 days, with rules for vacant property taxes expected within a year.
Officials say the changes will help balance supply and demand in the real estate market, particularly in high-pressure areas like Riyadh, where rising costs have strained affordability.
