Saudi white land tax comes into effect June 15

A new tax on undeveloped land in Saudi Arabia will come into effect Wednesday, June 15, housing minister Majed Al Hogail was quoted as saying by state news agency SPA.

The estimated value of taxable lands will depend on the location of plots, land use, topography, applicable construction laws, as well as availability of public and infrastructure services, he explained.

The land tax will combat land hoarding and restore balance to supply and demand within the kingdom’s property market by offering more affordable units, Al Hogail said.

Fees will be issued by the housing ministry, which will also clamp down on evaders by unifying the tax assessment standards in order to apply at all cities across the kingdom.

On Monday, the Saudi cabinet approved new rules governing the tax on undeveloped land. Many developers within the kingdom and abroad were awaiting more clarity on the tax before launching any new projects.