Saudi Arabia has introduced a new white land tax system in Riyadh, setting out four geographic zones with varying fee rates to promote balanced urban growth and curb real estate speculation. The initiative is part of a broader strategy to regulate the property market in accordance with Crown Prince Mohammed bin Salman’s directives.TL;DR:
- p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> Only plots listed within official urban boundary maps and a minimum size of 5,000 square meters are eligible; outside-priority areas are exempt from fees but included in cumulative land holdings.
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- p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> Support affordable housing supply and maximize efficient land use.
- Q. What is the purpose of Saudi Arabia’s new white land tax zones in Riyadh?The system encourages landowners to develop property, limits speculative holding, and supports more balanced urban expansion.Q. How are the land tax zones structured and taxed?There are four priority zones: Zone 1 at 10% land value, Zone 2 at 7.5%, Zone 3 at 5%, and Zone 4 at 2.5%; land outside priority zones is fee-exempt but tracked.Q. What qualifies a plot for the new tax?Eligible land must be within Riyadh’s official urban boundary maps and have a minimum size of 5,000 square meters, counted individually or as a cumulative holding.Q. How will land values and compliance be managed?A technical committee with licensed appraisers will assess property values and monitor timelines, while the ministry annually audits land supply, market activity, and fees. Go to Source
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