Saudi Arabia has introduced a new white land tax system in Riyadh, with four geographical areas with different fees rates to promote balanced urban growth and curb real estate speculation. This initiative is part of a comprehensive strategy to regulate the property market according to the instructions of Crown Prince Mohammed bin Salman.TL; Dr:
- Four priority areas in Riyadh will be subject to the fees of white land: Zone 1 10%, Zone 2 7.5%, Zone 3 5%and the evaluation of zone 4 is 2.5%of the land value.
- Only the official urban boundary maps listed within the urban border maps and the minimum size of 5,000 square meters is eligible; External-primary areas are exempted from fees, but cumulative land is included in holdings.
- The purpose of the fee is to encourage land development, adapt land use, and address speculative holdings with compulsory adjustments by the annual review and compulsory adjustment by the Ministry of Rural Affairs and Housing.
Details of white land fee program
According to the Saudi Gazette, the new -ported areas specify the annual tax rates differentiated on the basis of the land location and the priority of development, which ranges from 2.5% to 10% of the assessed price. The program applies to all types of undeveloped plots within specified urban borders, which focuses on at least 5,000 sqm plots in individual or cumulative ownership.A special technical committee that includes recognized evaluator will determine the land values ​​and monitor the development deadline. The term of each committee lasts for three years and can be renewed. Assessment and recommendations of this committee provide transparency and stability in implementing the fee structure.
Regulatory structure and inspection
The Ministry has established the executive rules, stating that all land use in the eligible urban areas of Riyadh falls under the five-level fee system. The plots outside the set priority areas are excluded from immediate fees, but affecting the reviews of the future city’s plan, are tracked as part of the total underdeveloped holdings of a owner.Every year, the ministry will evaluate land availability, housing supply, real estate transactions, pricing trends and monopoly practices. The results will inform the decisions about whether to apply, change or suspend fees in specific areas to keep urban growth on track.
Strategic goals and urban effects
The purpose of white land tax is:
- Stop speculative land hoarding and encourage quick development.
- Support affordable housing supply and maximize efficient land use.
- Foster Balanced City Extension was formed with Riyadh’s Economic and Social Development agenda.
By regular review and adjustment of the program, Saudi Arabia wants to ensure that its property supports market diversity, efficiency and long -term urban stability.
Fasting
Q. What is the purpose of the new white land tax areas of Saudi Arabia in Riyadh?The system encourages landlords to develop property, limiting betting holdings, and supports more balanced urban expansion.Q. How is the land tax area structured and taxed?There are four priority sectors: 10%land value on zone 1, zone 2 7.5%, zone at 5%and zone at 4 2.5%; Outside the priority areas, land is free-free but has been tracked.Q. What is a plot for new tax?Eligible land should be within the official urban border maps of Riyadh and is counted as a minimum size of 5,000 square meters, individually or cumulative holding.Q. How will land values ​​and compliance be managed?A technical committee with licensed assessors will assess property values ​​and monitor the timeline, while the ministry audits the annual land supply, market activity and fees.
