The amendments reflect the government's intention to promote the efficient use of real estate assets within the urban area, in line with the targets of urban development. The amendments reflect the government's orientation towards enhancing efficiency in the use of real estate assets within the urban area, in line with the targets of urban development.
The amendments reflect the government's orientation towards enhancing efficiency in the use of real estate assets within the urban area.
According to the amended system, the definitions have been expanded to include:
White Land: Any developable vacant land located within the boundaries of the urban area.
White Land.
Vacant properties: Buildings within the urban area that have not been utilized for a long time without an acceptable justification, and the disruption of their use negatively affects the abundance of real estate supply.
Vacant properties: buildings within the urban area that have not been utilized for a long time without an acceptable justification.
With regard to the application of the amendments, the law has set different dates for their entry into force:
White Land Fees: Its application begins from the effective date of its executive regulation, provided that the regulation is issued within 90 days from the date of publication of the amendments.
White Land Fees.
Vacant Property Fees: Effective from the effective date of its executive regulations, which must be issued within one year from the date of publication of the amendments.
The amendments also included amending the third article of the system, the most prominent of which are as follows:
An annual fee not exceeding 10% of the value of the land, according to controls determined by executive regulations, shall be imposed on white land owned by a natural or legal person, excluding state-owned real estate.
The powers of the Minister of Municipalities. The Minister of Municipalities and Housing is empowered to determine the scope of application of the fees and the areas covered, provided that the area of the land or group of land subject to the fees is not less than 5,000 square meters, as determined by regulations.
<An annual fee shall be imposed on vacant properties at a percentage of the like-for-like rent, not exceeding 5% of the property's value, with the exception of state-owned properties. This percentage may be raised to 10% by a decision of the Council of Ministers based on the recommendation of the competent ministerial committee.
These amendments come as part of the Saudi government's efforts to stimulate the utilization of unused real estate assets and increase the real estate supply, thus contributing to lowering land and housing prices and achieving balance in the real estate market.
For details of the new amendments Click here
