White Land Fees Program says fees inapplicable to completed land development

Logo of Idle Lands

The White Land and Vacant Properties Program clarified that development is the regulatory pathway to stopping the application of white land fees. It added that completing development and construction leads to the suspension of fee assessment on the developed land, with the invoice amount recalculated based on the land’s development status.

In a post on its official account on the “X” platform, the program stated that white land fees are incentive-based in nature, aiming to activate undeveloped land, support balance in the real estate market, and increase property supply.

It noted that initiating development enables better investment of land, accelerates its economic utilization, and reduces the associated regulatory obligations.

The program explained that the process begins by registering the land in the White Land Program, then proceeding with development or construction procedures, while monitoring the status through the electronic portal.

According to data available with Argaam, the Ministry of Municipalities and Housing (MOMRAH), represented by the White Land and Vacant Property Fees Program, announced, on Jan. 1, the issuance of more than 60,000 white land fee invoices in Riyadh.

A number of Tadawul-listed companies received invoices for idle land fees, against which they will submit objections.

According to data available with Argaam, Saudi Arabia’s White Land and Vacant Properties Fees Program began issuing its first invoices for undeveloped land in Riyadh today, Jan. 1.

The Ministry of Municipalities and Housing announced in August 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 (high priority) carries an annual fee of 7.5% of the land’s value. The third tier (medium priority) is subject to an annual fee of 5% of the land’s value. The fourth tier (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.