1- The uses of vacant real estate are subject to the application of the fee in accordance with the provisions of the regulation.

2- Only what is stated in the organizational plans issued by the competent authorities or the building occupancy certificate shall be considered in determining the type of building uses.

• 1- Owners of buildings announced as subject to the application of the fee must submit to the Ministry the documents and data related to their buildings, and declare their condition, in accordance with the announcement issued by the Ministry.
• 2- New owners of buildings subject to the application of the fee - according to paragraph (1) of this article - must submit to the Ministry the documents and data related to their buildings upon the transfer of ownership of those buildings to them, in accordance with the regulations and mechanisms determined by the Ministry.
• 3- The obligated parties must declare the condition of their buildings at least once during the reference year, in accordance with the announcement issued by the Ministry.
• 4- The Ministry - for the purpose of applying the provisions of the law and the regulation - may request any additional documents or data it deems necessary, and it may conduct inspection or examination of the building to verify occupancy or to ascertain the reasons for vacancy, in accordance with the procedures it determines.

• 1- A technical committee (or more) shall be formed in the Ministry by a decision of the Minister to estimate the rental value and the value of buildings subject to the fee. The number of its members shall not be less than three, and they must have expertise in the field of real estate valuation. Among them shall be licensed valuers from the Saudi Authority for Accredited Valuers. Its decisions shall be issued by majority vote; the membership term in the committee shall be three (3) years, renewable.
• 2- The estimation of the rental value and the building value shall be according to the standards, evaluation mechanism, and regulations approved by a decision of the Minister; including determining the average market value of the building for similar real estate in terms of location, type, and use, and determining the average rental value for buildings within the urban area according to the city. In cases where it is not possible to evaluate the building due to the absence of a similar property, the consideration shall be based on the land value according to the type of use and the building’s location.
• 3- Rules and procedures for the committee’s work and the standards it applies shall be issued by a decision of the Minister, in accordance with the relevant procedures and standards approved by the Saudi Authority for Accredited Valuers.

• 1- The geographic scope within the city shall be subject to the application of the fee upon the fulfillment of any of the following criteria within it:

  • A- High vacancy rate of real estate within the geographic scope.
  • B- High housing costs relative to the annual household income within the geographic scope.
  • C- High real estate prices compared to the consumer price index.
  • D- High vacancy rate of real estate for those owning more than one vacant property within the geographic scope.

• 2- The Ministry shall determine the technical details of the criteria stated in paragraph (1) of this article, and a decision shall be issued by the Minister after the approval of the Ministerial Committee.

• 3- The Ministry shall assess the fulfillment of the criteria stipulated in this article based on the approved technical details and in accordance with the type and use of the real estate.

• 4- If it is found that any of the criteria are met, the Ministry shall continue to monitor the fulfillment of those criteria for a period of no less than twelve (12) months.

• 5- If the criteria continue to be met during the period referred to in paragraph (4) of this article, the announcement to apply the fee shall be issued in accordance with the provisions of Article (Nine) of the Regulation.

• 1- The scope or geographical area(s) subject to the fee within each city shall be determined by a decision of the Minister, including the following:

  • A- The annual fee on vacant real estate at a percentage of the comparable rent, not exceeding 5% of the building's value.
  • B- The uses of vacant real estate subject to the fee.
  • C- The minimum number of vacant real estate properties subject to the fee owned by one person, according to the type of use.

• 2- The Ministry shall annually review the availability of buildings, their supply and occupancy rates, the volume of their transactions, their comparable rent, and monopolistic practices in any city or geographical area, to decide on the application of the fee on vacant real estate within the urban area.

Buildings located within the urban area are considered vacant if they are not utilized for a continuous or intermittent period of six (6) months during the reference year. This period may be amended by a decision of the Minister - after the approval of the Ministerial Committee -.

• It is a condition for subjecting the vacant real estate to the application of the fee that the following conditions and criteria are met during the reference year:

  • 1- The building must be located within the scope of the fee application, according to the announcement.
  • 2- The building must be occupiable or have obtained its occupancy certificate, according to the type of use and the location of the real estate within the city.
  • 3- The use of the building must be among the uses listed in the decision.
  • 4- The number of vacant properties owned by the taxpayer within the scope of application must not be less than the minimum specified in the decision.
  • 5- The minimum consumption of benefits and services allocated for the type of building use must not be achieved, and the consumption determinants are issued by a decision of the Minister - after the approval of the Ministerial Committee -.

• 1- The announcement is issued by a decision of the Minister and includes the necessary data, including:

  • A- The date of the announcement.
  • B- The name of the city subject to the fee.
  • C- The map of the geographic scope within the city subject to the fee.
  • D- The start of the reference year for applying the fee.
  • E- The duration of the deadline specified for declaring the building’s status and its expiration date.
  • F- The address of the electronic portal through which the obligated party is required to declare.
  • G- Specification of the documents and data required from the obligated party to submit and declare, including a copy of the building ownership proof document and its data.

• 2- The announcement shall be published in the Official Gazette and the electronic portal designated by the Ministry to implement the provisions of this regulation.