The Ministry of Municipalities and Housing , represented by the Municipal Services, Planning and Urban Development Sector, invited the public and specialists to express their opinions and views on the draft amendment to the executive regulations for white land fees , through the “Survey” platform during the period from October 22 to November 21, 2026.
This step comes with the aim of achieving full alignment between the provisions of the regulation and the recent Cabinet decision regarding restricting real estate transactions and stopping their documentation in lands subject to the system except after verifying the payment of the fees due on them.
The proposed amendment stipulates that taxpayers must pay all outstanding fees as a prerequisite for documenting any transfer of ownership of undeveloped land subject to the fee before its development or construction is completed. The draft also provides additional flexibility by allowing for exceptions to this procedure in certain cases, subject to the approval of the relevant ministerial committee.
This proposed text represents an evolution from the current wording of Article Thirteen of the Executive Regulations, which was limited to cases of sale by stating that “when the taxpayer wishes to sell the land before the completion of the development, the payment period expires and he is obligated to pay the fees before transferring ownership,” as the new wording is more comprehensive for the majority of transactions transferring ownership.
These amendments fall under the requirements of Cabinet Resolution No. (263), issued on August 25, 2026, and published in the Official Gazette "Umm Al-Qura" in September of the same year. The resolution mandates the Ministerial Committee to develop regulations and procedures governing the documentation of real estate transactions, ensuring the preservation of the state's rights to collect outstanding dues on land, without hindering development in cases that do not involve a transfer of ownership.
What is the white land tax system?
The white land fee system is a system that imposes an annual fee on vacant (undeveloped) land located within the urban boundaries of cities, with the aim of encouraging its owners to develop it or put it on the market, instead of keeping it undeveloped.
Among the most notable new amendments is the increase in the annual fee to 101 TP3T of the land value in the highest priority urban development zone, 7.51 TP3T in the high priority zone, 51 TP3T in the medium priority zone, and 2.51 TP3T in the low priority zone. Land outside these priority zones is exempt from fees but is included in the total land area of the owner. The minimum area subject to the fee has also been lowered to 5,000 square meters or more.
Objectives of white land fees
Increased supply of developed land and residential units.
Achieving a balance between supply and demand in the real estate market.
To reduce inflation in land and real estate prices.
Combating monopolistic practices (land monopoly without development).
Protecting fair competition in the market.
Conditions for subjecting land to the tax
To be a white land (undeveloped space).
To be located within the approved urban area.
Its area (or the total land of the owner in the city) must not be less than 5,000 m².
To be expandable or buildable.
To be within the ranges announced by the ministry.
It is worth mentioning that the system was first issued under Royal Decree No. (M/4) dated 12/2/1437 AH (November 2015), and its actual implementation began in 2017. In 2025, it was substantially amended under Royal Decree No. (M/244), to become the “White Land and Vacant Real Estate Fees System,” and its new executive regulations were issued in August 2025.
Read also:
Infographic | Highlights of the executive regulations for white land fees
