The white land tax saw a major amendment in 2025 that shifted it from a flat rate to a tiered-zone system and expanded its scope to include vacant real estate. This guide explains the new rates, which land is subject, and how the fee is calculated — with an example.
Rates by tier
The amended regulations (August 2025) set a tiered annual fee by development priority:
| Tier | Priority | Annual fee |
|---|---|---|
| 1 | Highest priority | 10% |
| 2 | High priority | 7.5% |
| 3 | Medium priority | 5% |
| 4 | Low priority | 2.5% |
| 5 | Outside priority scope | No fee |
Which land is subject
The fee applies to vacant land within the urban boundary exceeding 5,000 m², designated for residential or commercial use and left undeveloped. The amended law also expanded the scope to include vacant real estate.
Worked example
A white-land plot with a market value of SAR 12 million in Tier 1 (10%):
Calculation: 12,000,000 × 10%
Annual fee = SAR 1,200,000.
The regulator
The system is overseen by the Ministry of Municipalities, Rural Affairs and Housing, which determines the land's official value and zone through the Ministry platform.