Saudi Arabia Introduces New Land Tax Zones in Riyadh to Curb Speculation

KSA, 29 August, 2025: Saudi Arabia has unveiled new geographic zones for the white land fee program in Riyadh, aimed at regulating the property market and promoting balanced urban development under the directives of Crown Prince Mohammed bin Salman.

Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail said the new system imposes annual fees on undeveloped lands based on five tiers:

• Zone 1: 10% of land value

• Zone 2: 7.5%

• Zone 3: 5%

• Zone 4: 2.5%

• Outside priority areas: exempted but included in owners’ total holdings

The program applies to plots within official urban boundaries of at least 5,000 sqm, whether individually or combined under one owner. A technical committee of certified valuers will determine land assessments and development timelines.

The ministry will review land supply, housing availability, and market activity annually, with the power to adjust or suspend the program to support urban development goals.