Real Estate
White Land Fees Law
The White Land Fees Law, issued pursuant to Royal Decree No. (M/4) dated 12/02/1437H, imposes an annual fee on undeveloped white lands not exceeding (10%) of the land’s value, whether the land is owned by one or more persons natural or legal persons excluding properties owned by the State.
- The primary responsibility for paying the fees and penalties rests with the landowner, unless payment is made by a person deemed to be in the position of the owner.
The following conditions must be met for the land to be subject to the fees
- The land must be white land, meaning vacant land capable of development and improvement within the boundaries of the urban area.
- The land must be capable of development or construction, provided that construction covers the entirety of the land, and fencing or similar measures are not considered construction.
- The area of the land, or the total area of white lands owned by the same owner within the city, must not be less than 5,000 square meters.
- The land must fall within the designated scope of fee application, pursuant to the decision issued by the Minister of Municipalities and Housing regarding the inclusion of the city under the fee application.
- The land use must fall within the uses specified in the decision.
Despite fulfilling the aforementioned conditions, the application of the fees may cease in the following cases
- The absence of any of the fee applicability requirements referenced above.
- The existence of an impediment preventing the landowner from disposing of the land, provided that the obligated person is not responsible for or involved in the cause of such impediment.
- The existence of an obstacle preventing the issuance of the permits and approvals required for developing or constructing the land during the statutory payment period, provided that the obligated person is not responsible for or involved in the cause of such obstacle.
- Completion of the land’s development or construction within one year from the date of issuance of the decision.
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