Riyadh White Land & Vacant Property Fees Explained

Property owners in the Saudi capital face new financial obligations after the launch of updated fees on undeveloped and unused real estate. The first invoices for Riyadh's white land fees were issued on 1 January 2026, covering lands located within the city's included geographical zones. The programme is administered by the Ministry of Municipalities and Housing.

The fee targets undeveloped white land inside Riyadh's urban boundary, with a minimum land area of 5,000 square meters. Annual rates vary by priority zone: 10% for zone 1, 7.5% for zone 2, 5% for zone 3, and 2.5% for zone 4. Land outside the priority zones carries a 0% rate but is still counted within an owner's total land holdings across the city.

A New Vacant Property Fee

In a parallel move, the executive regulation for the vacant property fee was approved on 13 May 2026. This fee applies to ready residential and commercial units that have gone unused for six months during the reference year.

The vacant property fee can reach up to 5% of a building's value, and may be extended to as much as 10%.

For residents and investors alike, the updates signal a stronger push to bring idle land and empty units into active use, aiming to increase housing supply and encourage development within Riyadh. Owners of large undeveloped plots or long-vacant units in the capital should review their holdings to understand how the new rates may apply.

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