No Property Transfer Without Paying White Land Fees

The Saudi Cabinet approved a regulation on 25 August 2026 that prohibits the documentation of any real estate transaction transferring ownership of land subject to the White Land and Vacant Properties Fees Law until all due fees on that land are verified as fully paid.

The restriction applies to all ownership-transfer documentation, including notarial and electronic title transfers. It is enforced at the documentation stage, meaning a transfer cannot be completed unless the fee status is confirmed as "paid in full."

The White Land and Vacant Properties Fees regime is an annual levy on undeveloped "white" land and on vacant built properties within designated urban boundaries. It is intended to discourage land and unit hoarding and to support urban development across the Kingdom.

How the fees work

Under the amended framework, white land fees are progressive, up to a maximum of 10% of the assessed land value applied across multiple tiers based on development-priority zones. In Riyadh, for example, 2026 rates range from around 2.5% in low-priority zones up to 10% in maximum-priority zones, effective from 1 January 2026. The unified amendments set the minimum area threshold for white land subject to the fee at 5,000 square metres.

The Vacant Property Fee applies to vacant or largely unused built properties, such as residential or commercial buildings left unused for at least about six months in the reference year. It is calculated as a share of fair rental value, typically up to 5% of the property's value annually, with the legal maximum raised to 10% subject to ministerial decision.

White Land Fees executive regulations entered into force on 1 January 2026, while the Vacant Property Fees regulations were approved in May 2026. The Ministry of Municipalities and Housing is the competent authority for administering the fees, including land classification, issuing invoices, and handling objections. For property owners and buyers, the new rule means fee settlement is now a mandatory step before any transfer can be completed.

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