Saudi Arabia issues first white land tax bill in Riyadh

Saudi Arabia has begun levying the white land tax on undeveloped plots on Wednesday, housing minister Majed Al Hogail said on his official Twitter account.

The first invoice was issued in Riyadh, after sorting and assessing the plots of land registered on the ministry’s website.

Landowners are required to pay the fees within one year from being issued the invoice.

According to the housing ministry’s schedule for the tax imposition, Riyadh would be covered by the end of March, Jeddah at the beginning of April and the Eastern Province by April-end.

In November 2015, the kingdom’s cabinet approved a proposal to impose a 2.5 percent tax on all undeveloped residential and commercial plots in urban areas, in a move to solve the housing shortage problem, Argaam reported.

Land owners are required to pay a fee of 2.5 percent of the white land's value or develop it within 12 months.

The new tax applies to undeveloped lands larger than 10,000 square meters.