Idle Land Fees Program clarifies rules for developers’ land

Implementation of the idle land fees will be mandatory for all owners, including real estate development firms, excluding state-owned properties

The Idle Land Fees Program today released a clarification for the method of dealing with land owned by real estate developers or the land that is under development.

In a post on X, the program said the fees will be mandatory for all owners, including real estate development firms, but will exclude state-owned properties. Land under development will be granted a one-year grace period from the date of fee imposition to complete construction and cancel the bill, with the option of an additional grace period under approved technical guidelines.

The land subject to the program in Riyadh includes residential, mixed-use residential-commercial, and commercial plots.

According to Argaam data, the ministry last month announced the zones in Riyadh covered by the Idle Land Tax. Annual fees are set at 10% of land value for the first tranche, 7.5% for the second, 5% for the third, and 2.5% for the fourth. Land in the fifth tranche, outside priority zones, is not subject to the annual tax but is counted within undeveloped plots owned by the taxpayer.