RIYADH : Saudi Arabia has introduced new land tax regulations aimed at accelerating property development and increasing housing supply.
The Ministry of Municipalities and Housing announced that the annual levy on undeveloped plots has been raised to as much as 10 per cent of the land’s value. In addition, newly introduced fees of between 5 per cent and 10 per cent will be applied to long-term vacant buildings.
The changes, which took effect this month, apply to plots measuring 5,000 square metres or more within approved urban boundaries. Officials said the move is part of broader efforts to stimulate construction activity, curb land hoarding, and expand affordable housing options across the kingdom.