White Land Fees Program clarifies the application mechanism for real estate development companies

The fees apply to all owners, including developers, and land under development gets a one-year grace period that can be extended.
White Land Fees Program

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The White Land Fee Program of the Ministry of Municipalities and Housing issued a clarification on the mechanism for dealing with land owned by real estate development companies or land that is still under development.

<The White Land Fees program, through its official account on the “X” platform, explained that the application of the fees includes all owners, including real estate development companies, with the exception of state properties. As for the lands under development, the system gave them a full year from the date of imposing the fee to complete the development work and cancel the invoice, with the possibility of granting an additional deadline in accordance with the approved technical controls.

Scope of application in Riyadh

The application of fees in Riyadh city includes various land uses, whether residential, residential commercial, or commercial. Last month, the ministry announced the geographical ranges covered, specifying the rates of fees payable on white lands according to priority as follows:

Riyadh City

The first tranche (highest priority): 10% of the land value per year.
Tranche II (high priority): 7.5% of land value per year.
Third Tranche (Medium Priority): 5% of land value per year.
Tranche IV (low priority): 2.5% of land value per year.
Fifth Tier (non-priority): No annual fee is charged, but it is counted in the total white land owned by the taxpayer within the city limits.

A step towards balancing the real estate market

This clarification comes as part of the program's efforts to enhance transparency, motivate owners and developers to accelerate development processes in order to increase the supply of residential and commercial land, and support the balance of the real estate market in the capital, Riyadh.