Implementing Regulations of the White Land Fees Law with annual fees of up to 10% of the land value

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The Ministry of Municipalities and Housing announced the adoption of the Implementing Regulations of the White Land Fees Law, as a regulatory step aimed at increasing the supply of developed land to achieve a balance between supply and demand, expand the availability of real estate units, protect fair competition, and combat monopolistic practices.

In a press release issued today, the Ministry explained that the regulations adopt an enhanced mechanism for applying the fees by dividing the targeted geographic areas into tiers based on urban development priorities within each city. Annual fees of up to 10% of the land value will be imposed on the tier with the highest priority for urban development.

According to the regulations, which consist of 16 articles, the Ministry shall periodically review the availability of units and land, their supply and circulation volumes, prices, and monopolistic practices in any city or geographic scope, in order to decide whether to apply the fees, adjust the area subject to fees, or suspend the application.

The Ministry clarified that the regulations specify five conditions under which white land is subject to the fee, including that the land—or the total area of lands owned by one owner subject to application in the city—must not be less than 5,000 m². The full text of the Implementing Regulations of the White Land Fees Law can be accessed through the official program portal at: https://idlelands.momah.gov.sa/ar.

The regulations also took into account reasons that may prevent owners from developing their land, stipulating that the fee shall not apply in cases of legal impediments or obstacles that prevent issuing the necessary permits, provided the owner is not the cause. The Ministry may also grant additional time for development based on the nature and size of the land. Moreover, completing the development or construction of the land within the statutory period for fee payment cancel the application of the fee.

The Ministry has facilitated the development procedures for owners and developers through “Etmam” Developers Services Center, which accelerates the approval of master plans, building permits, and other licenses via a unified platform, enabling taxpayers to expedite development and enhance the efficiency of their real estate investments.

The Ministry urged concerned landowners—whose areas will be announced successively in upcoming official publications—to register their lands through the program’s electronic portal within the statutory period specified for each announcement.

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