"Municipalities and Housing": The first invoice for white land fees in Riyadh will be issued starting from January 1, 2026

The Ministry of Municipalities and Housing confirmed that the White Land and Vacant Properties Fees Program will begin issuing the first invoice for fees on white lands located within the geographical areas subject to application in the city of Riyadh, starting from January 1, 2026.

The ministry explained that the program allows the taxpayer, upon the issuance of the invoice, to submit a request for an additional grace period for development, provided that the grace period is granted after the approval of the competent committee and in accordance with the approved regulations, indicating that if the development is not completed during the additional period, the fees are due for the entire period.

The ministry explained that the system guarantees the right to object to the fee invoice, as the taxpayer has the right to appeal to the competent committee within sixty days from the date of being notified of the invoice decision, provided that the committee decides on the objection within a period not exceeding 60 days from the date of its submission, in accordance with the procedures and mechanisms specified by the system.

The ministry indicated that the fees apply to landowners whose land area or total area exceeds (5,000) square meters, located within the announced zones in the city of Riyadh, which were divided into five zones according to their priority in urban development. The annual fees for the first zone, “maximum priority,” were set at 10% of the land value, followed by the second zone, “high priority,” at 7.5%, then the third zone, “medium priority,” at 5%, while fees of 2.5% were imposed on the fourth zone, “low priority,” in addition to a zone outside the zone of priorities on which no fees are imposed, while it is counted within the total land owned by the taxpayer within the geographical zone of the city of Riyadh.

The ministry added that the executive regulations for white land fees included all uses of land located within approved urban areas, and their uses are determined by a decision of the minister according to the geographical areas of each city. It also organized the mechanism for dealing with joint ownership, so that each owner is obligated to pay the fee according to the percentage of white land he owns.

The regulations also stipulate the formation of a technical committee comprising licensed appraisers from the Saudi Authority for Accredited Appraisers, by decision of the Minister of Municipalities and Housing, to assess the value of undeveloped land and determine the periods for its development or construction, and to issue its decisions by majority vote, stressing the obligation of the person responsible to pay the fee and any fines resulting from violating the provisions of the system or regulations, provided that payment is made within one calendar year.

The Ministry of Municipalities and Housing affirmed that the application of fees on vacant land and properties is a regulatory tool aimed at stimulating the development of unexploited land within urban areas, reducing its monopolization, and increasing the supply of developed land, which contributes to achieving a balance between supply and demand and the stability of the real estate market. It pointed out that the fees represent one of the regulatory enablers for achieving urban development goals, improving land use efficiency, and supporting quality of life, and that the revenues from the fees are redirected to housing projects, in accordance with what is stipulated in the system and its executive regulations.

The ministry concluded by noting that the “Itmam” Developers Services Center provides direct support to owners of undeveloped land who wish to develop their land, by facilitating and expediting licensing and approval procedures, and coordinating with government agencies and service providers, in order to enable owners to complete their projects within the approved regulatory frameworks.