The white land fee is an annual charge of up to 10% of a plot’s value. It applies to vacant land that can be developed inside a city’s urban boundary, when the land lies in a zone announced by the Ministry of Municipalities and Housing and the plot, or the owner’s combined plots in that city, reach at least 5,000 m². Riyadh is the first city where it applies under the new regulation, at 10%, 7.5%, 5% and 2.5%, and its first invoices were issued in January 2026. The vacant property fee is capped at 5% of a building’s value and targets buildings left unused for 6 months in a reference year inside an announced zone; as of the review date (5 October 2026), it had not been announced for any city.
What did Royal Decree M/244 change in the white land fee law?
Royal Decree M/244 dated 7/11/1446H widened the law so that it now covers both undeveloped land and vacant buildings. It was issued under Council of Ministers Resolution 758 dated 1/11/1446H, amending the law originally issued by Royal Decree M/4 dated 12/2/1437H, and was published in the official gazette Umm Al-Qura (issue 5086) on 12 May 2025. The main changes:
- The law was renamed the White Land and Vacant Property Fees Law.
- White land now means any vacant plot that can be developed inside the urban boundary; before, only land zoned residential or residential-commercial was covered.
- A fee of “up to 10%” of land value replaced the flat 2.5% of the original text.
- The land subject to the fee, as one plot or as an owner’s combined plots, may not be smaller than 5,000 m².
- A new annual fee on vacant property was added, set as a share of the fair rent and capped at 5% of the property’s value; the Council of Ministers may raise it to 10% on the ministerial committee’s proposal.
- State-owned property is excluded, and the proceeds are earmarked for housing projects.
The decree phased in the changes: the white land provisions apply from the date their regulation takes effect (to be issued within 90 days of publication), and the vacant property provisions apply from the date their own regulation takes effect (to be issued within one year).
| Date | Event |
|---|---|
| 12 May 2025 | Amendment (Royal Decree M/244) published in Umm Al-Qura |
| 22 Aug 2025 | White land implementing regulation published in Umm Al-Qura |
| 27 Aug 2025 | Riyadh zone maps announced, with a 60-day registration window |
| 30 Oct 2025 | Riyadh land registration deadline |
| 1 Jan 2026 | Riyadh invoicing begins (more than 60,000 invoices) |
| 13 May 2026 | Ministry announces approval of the vacant property regulation |
| 15 May 2026 | Vacant property regulation published in Umm Al-Qura |
| 5 Oct 2026 (review date) | Vacant property fee not announced for any city |
Which white land is subject to the fee?
A plot is subject to the fee only when all five conditions in Article 7 of the White Land Fees Implementing Regulation are met:
- It is white (undeveloped) land.
- It can be developed or built on.
- It lies inside the fee zone set by the relevant announcement.
- Its area, or the total area of white land owned by the same owner within the city, is at least 5,000 m².
- Its land use is among the uses listed in the minister’s decision.
The person liable is whoever holds the title deed when the invoice is issued, whether an individual or a company, including heirs and other legal successors; co-owners each pay in proportion to their share. The minister’s decision sets the uses covered in each zone; in Riyadh they include residential, residential-commercial and commercial land.
Example: an owner with two 3,000 m² plots inside Riyadh’s zones holds 6,000 m² in total, so both plots are subject to the fee if the other conditions are met, because the test is the owner’s combined holding in the city.
How much is the white land fee and how is it calculated?
There is no single national rate. The minister’s decision divides each covered city into zones, and Article 6 of the regulation sets the rate by the zone’s urban development priority:
| Tier | Development priority | Annual fee (share of land value) |
|---|---|---|
| 1 | Highest | 10% |
| 2 | High | 7.5% |
| 3 | Medium | 5% |
| 4 | Low | 2.5% |
| 5 | Outside the priorities | No fee, but the land counts toward the owner’s total holding in the city |
Land value is set by a technical committee of at least three members, including valuers licensed by the Saudi Authority for Accredited Valuers, deciding by majority; the valuation includes a coefficient for public services and utilities reaching the land. The tier rate is then applied to the value: a tier-1 plot valued at SAR 6,000,000 would owe SAR 600,000 a year, and the same plot in tier 4 would owe SAR 150,000 (illustrative figures only).
Each year the ministry reviews supply, prices and monopolistic practices in every city and may change the area subject to the fee or suspend it.
When does the white land fee stop, and are there exemptions?
The law provides no exemptions other than excluding state-owned property, but Article 8 of the regulation sets out when the fee stops applying:
- Any of the five conditions above ceases to be met.
- An impediment prevents the owner from disposing of the land during the payment period, provided the owner did not cause or contribute to it.
- An obstacle prevents permits for development or building from being issued during that period, on the same condition.
- Development (full infrastructure) or building (structures fully built under their permits) is completed within the payment period. Fencing and similar works do not count as building.
The committee may grant extra time to develop or build, depending on the plot’s size and nature. The request is made through the Invoice Management service on the program portal, with a valid project approval document, plus a schedule from an engineering office if the time requested exceeds 6 months. The payment deadline is extended to the end of the extra time; if the owner completes development or building within that deadline after paying, the amount paid is refunded, otherwise the fees are collected.
How is a white land invoice paid, and how can an owner object?
Each invoice states the fee rate and amount, the due date, the payment method and the right to object. Notices are legally valid when sent through the program portal, the owner’s verified mobile number or email, or the national address.
- Payment deadline: one Gregorian year from the invoice date; invoices for earlier years are due within 90 days of notification.
- Selling before development is complete: the payment period ends and the fee must be paid before ownership is transferred. The 5% real estate transaction tax is a separate matter.
- New owners: anyone who acquires land after the announced registration period must submit its documents to the ministry within 30 days of the transfer.
- Objections: in writing to the competent committee within 60 days of notification, through the Objections Management service on the portal; under the law the committee rules within 60 days of receiving it (the portal says a 90-day legal review comes first), silence counts as rejection, and its decisions can be challenged before the competent administrative court.
- Violations: a fine of up to the fee due, without relieving the owner of the fee itself. The ministry has warned that the fine for failing to register can reach 100% of the fee.
Owners can check whether a plot is subject to the fee using its deed or real estate registry data through the portal’s land fee status inquiry service.
Which vacant property is subject to the fee?
A vacant property is a building inside the urban boundary left unused for a long period without an acceptable reason. The regulation defines a building as any fixed structure, or an independent part of one, that can be occupied and whose occupancy can be measured on its own; the program portal says the fee applies to the property or to the vacant part of it.
A building counts as vacant when it is not used for 6 months, consecutive or not, within the reference year, a 12-month period set by the ministry; the minister may change that period with the ministerial committee’s approval. Under Article 8, a building is charged only when all five conditions are met:
- It lies inside an announced fee zone.
- It is fit for occupancy or holds an occupancy certificate, according to its use and location.
- Its use is among the uses listed in the minister’s decision.
- The number of vacant properties the owner holds in the zone is not below the minimum set in that decision.
- Its consumption of utilities and services stays below the minimum set for its use; the consumption thresholds are issued by ministerial decision.
A building’s use is taken from the official zoning plans or its occupancy certificate. The regulation does not fix the minimum number of vacant properties per owner; it leaves that to the minister’s decision for each zone and use, so it is not yet possible to say whether an owner of a single empty apartment will be charged.
How much is the vacant property fee, and how is it assessed and notified?
The annual fee is set as a share of the building’s fair rent and may not exceed 5% of its value. A building worth SAR 2,000,000 could therefore owe at most SAR 100,000 a year; that is only the ceiling, and the actual rate will be set by the minister’s decision for each zone.
A technical committee that includes licensed valuers assesses fair rent and value, using average values of comparable properties by location, type and use and average rents in the city; where no comparable exists, land value is used. The process runs as follows:
- Announcement: issued by ministerial decision and published in the official gazette and on the fees portal, naming the city, the zone map, the start of the reference year and the disclosure deadline.
- Disclosure: owners in the zone submit their buildings’ documents and disclose their status as the announcement requires, at least once each reference year; new owners must do so on transfer. The ministry may ask for more documents or inspect the building.
- Invoice: shows the rate, amount, due date, payment method and right to object, and is served through the same channels as white land notices.
- Payment: within 6 months of notification, or within 90 days for invoices covering earlier years; co-owners pay according to their shares.
- Objection: within 60 days of notification to the competent committee under Article 8 of the law, then a challenge before the administrative court.
- Fines: capped at the fee due; the ministry will issue a schedule of violations and fines by ministerial decision.
The person liable is the owner, including anyone in the owner’s position such as the holder of a documented usufruct contract; the law makes the owner primarily responsible for fees and fines unless that other person pays them.
Has the vacant property fee started, and in which cities?
The Ministry of Municipalities and Housing had not announced it for any city or zone as of the review date (5 October 2026). When it approved the regulation on 13 May 2026, the ministry said cities and zones would be announced once vacancy criteria are met; the program portal says the fee will not apply to every city, and neither the ministry’s news nor the portal’s had carried any such announcement by that date.
Under Article 5 of the regulation, a zone becomes eligible when any of four criteria is met: a high vacancy rate; high housing costs relative to annual household income; property prices rising faster than the consumer price index; or high vacancy among owners of more than one vacant property. Once a criterion is found, the ministry keeps monitoring it for at least 12 months, and the announcement follows only if it persists. The technical details of these criteria are issued by ministerial decision after the ministerial committee approves them.
The portal states that no fee applies before zones are approved and announced. After an announcement, however, the regulation allows fees for earlier years to be charged from the date the property became subject to the decision in its zone.
When does the vacant property fee stop?
Under Article 10 of the regulation, the fee stops if any of the following happens during the reference year:
- A condition for the fee ceases to be met, for example the building’s utility use rises above the minimum or its use falls outside the covered uses.
- An impediment prevents occupancy that the owner did not cause or contribute to; the list of accepted impediments is issued by ministerial decision with the ministerial committee’s approval.
- The building is sold under an official document.
- An occupancy certificate is issued for the building during the reference year, except for buildings that had full electricity connection before the certificate was issued.
- The vacancy results from pressing and valid reasons, provided the building is registered as the owner’s main address under the relevant rules and supporting documents are submitted.
Is a documented Ejar lease enough to show a property is not vacant?
The regulation does not mention Ejar or leases by name. Its tests are non-use for 6 months in the reference year and utility consumption below a set minimum. A tenant living in the unit is the clearest form of use, but the regulation does not say that a lease alone is enough if the unit stays unused. The program portal says that merely listing a unit for rent or sale does not change the assessment, and that vacancy is verified through technical and operational indicators and data links with other government bodies.
The ministry may ask for any documents it needs and may inspect the building, so documented leases help an owner. A lease not registered on Ejar has no administrative or judicial effect under Council of Ministers Decision 292. In Amlakire, the full lease data is prepared and the user clicks the lease registration request button (“طلب تسجيل عقد إيجار”) so that a licensed real estate office documents it on Ejar, with no direct technical integration between Amlakire and Ejar.
In the Riyadh urban area, owners must also follow the 5-year rent freeze that began on 25 September 2025: a vacant unit is re-let at the total rent of its last lease, while a unit never leased before can be priced freely.
What should the owner of a vacant apartment or building do now?
No owner has to pay the fee or disclose vacancy before an announcement covers their building, but preparing early helps:
- Watch for official announcements in Umm Al-Qura and on the White Land and Vacant Property Fees portal; there is no fee before an announcement.
- Track vacant months for each unit: the limit is 6 months, consecutive or not, in the reference year, so short gaps between tenants add up.
- Count your vacant units and their uses: the decision will set a minimum number per owner in the zone, by use.
- Keep proof of use: leases documented on Ejar and electricity and water bills, since the ministry may request documents or inspect the building.
- Update your contact details: register your national address and check your verified mobile number and email, because notices sent there are legally valid.
- Document reasons for vacancy beyond your control: such as an impediment to occupancy, or a pressing reason if the building is your main address, since these stop the fee.
- If an announcement covers your building: disclose its status within the deadline, review the invoice, object within 60 days if the coverage or valuation is wrong, and pay within 6 months.
Summary
The white land fee is already in force under the August 2025 regulation, with tiers from 10% down to 2.5% and a 5,000 m² minimum, starting in Riyadh, where invoices were issued in January 2026. The vacant property regulation has been published since 15 May 2026 with a ceiling of 5% of building value, but as of the review date (5 October 2026) it had not been announced for any city, and it applies only after an official announcement naming the city and zone.
Official sources
- White Land and Vacant Property Fees Law — Bureau of Experts
- Royal Decree M/244 and Council of Ministers Resolution 758 (Umm Al-Qura 5086)
- White Land Fees Implementing Regulation — Umm Al-Qura
- Vacant Property Fees Implementing Regulation — Umm Al-Qura
- Approval of the vacant property regulation — Ministry of Municipalities and Housing
- Vacant property regulation FAQ — program portal
- Extra time and invoice objections — program portal
- Riyadh white land zone maps — Ministry of Municipalities and Housing
- First white land invoicing in Riyadh — Ministry of Municipalities and Housing
- Riyadh’s first white land invoices — Ministry of Municipalities and Housing