Ministry of Municipalities and Housing: Approval of the executive regulations for fees on vacant properties

Monday 08 June 2026
zcv

The Ministry of Municipalities and Housing announced the adoption of the executive regulations for vacant property fees, within a regulatory framework aimed at raising the efficiency of the use of real estate assets and enhancing balance in the real estate market. The fees will be applied according to specific criteria that assess market conditions in the ranges that will be announced at the time, in line with the directives of His Highness the Crown Prince - may God protect him - aimed at regulating the real estate market and achieving balance between supply and demand.

The ministry explained that the regulation aims to stimulate the utilization of vacant buildings and increase the supply of residential and commercial units, which will contribute to reducing practices that affect market balance.

She explained that the fees are applied to vacant buildings located within geographical areas announced by a decision of the Minister, based on market standards and indicators that include vacancy rates, supply and demand levels, prices, and housing costs, provided that the cities and areas covered and the mechanisms of application are announced when the vacancy criteria are met.

According to the regulations, a building is considered vacant if it is not used or utilized for (6) consecutive or non-consecutive months during the reference year. The ministry also indicated that the uses of buildings subject to the fee are determined according to what is approved in the zoning plans or occupancy certificates, while the taxpayer – whether an individual or a legal entity – is obligated to pay the fee according to their ownership percentage in the event of multiple owners.

The regulation also stipulated that the value of the fee is estimated based on the fair market rent for the building according to approved evaluation standards, with an annual fee not exceeding (5%) of the building's value, taking into account the average market and rental values of similar properties.

The ministry confirmed that the regulations took into account cases where it is impossible to occupy the building for reasons beyond the taxpayer's control, in addition to cases related to issuing occupancy certificates or transferring ownership in accordance with the approved regulatory documents.

She added that the regulations included clear mechanisms for issuing invoices and notifying taxpayers, in addition to providing the right to object according to the regulatory procedures, and setting a deadline for payment of up to (6) months from the date of issuing the invoice, which enhances the clarity of procedures and fairness of application.

The regulations can be viewed by visiting the link https://idlelands.momah.gov.sa/ar/guide/86011 .

It is worth noting that the regulations stipulate that the revenues from fees be allocated to support housing projects, which contributes to enhancing urban development and increasing the efficiency of utilizing land and real estate assets.

Comments and suggestions

For any inquiries or comments about government services, please fill out the required information.

Last Updated:

The Kingdom of Saudi Arabia