For the purposes of applying this Regulation, the following words and phrases wherever they appear in this Regulation shall have the meanings indicated opposite each of them, unless the context requires otherwise.

Regulation: The Implementing Regulation of White Land Fees.

Land Construction: The complete construction of buildings on the land - excluding fencing and similar works - in accordance with the issued building permits; and in compliance with the related requirements.

Land Development: The full implementation of the land's infrastructure, in accordance with the issued permits; and in compliance with the regulatory requirements and the approved plan.

Obligated Person: A natural or legal person - excluding state real estate - registered in their name as the owner of the land subject to the fee at the time of issuance of the fee invoice, including those who succeed them legally or by law.

Announcement: An announcement issued by a decision of the Minister regarding subjecting the city to the application of the fee.

Urban Scope: The boundaries of urban activity localization and the accommodation of the city's urban growth over a specified period.

Geographical Scope: Spatial boundaries including a group of lands within the city subject to the application of the fee.

City: Includes the city, governorate, and center.

Fee Invoice: A payment order issued by the Ministry on specified dates for each land subject to the fee application, containing the data stipulated in the Law and Regulation.

Decision: A decision issued by the Minister to apply the provisions contained in the Regulation.

1- All land uses are subject to the application of the fee in accordance with the provisions of the Regulation.

2- In determining the urban boundary and in allocating land uses, only what is stated in the urban boundary determination maps and in the detailed plans issued by the competent authorities in implementation thereof shall be considered.

3- If the white lands subject to the application of the fee are owned by more than one person, whether natural or legal persons, each of them shall be obligated to pay a portion of the fee proportional to their share of land ownership.

• 1- A technical committee (or more) shall be formed in the Ministry by a decision of the Minister to estimate the value of the land subject to the fee, and to determine the periods necessary to complete the development or construction of the white lands. The number of its members shall not be less than three, who must have expertise in the field of real estate valuation and related land development procedures, and 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 or extendable.

• 2- Issued by a decision of the Minister:

  • A- The rules and procedures for the committee's work and the standards it applies; in accordance with the procedures and standards approved by the Saudi Authority for Accredited Valuers.

  • B- The remuneration of the committee members, in agreement with the Ministry of Finance.

1- The public services availability coefficient for lands, and the accessibility of public utilities thereto, shall be determined according to weights assigned to each service or utility based on its necessity for the land and its impact on the valuation of the land. These weights shall not change within the same city.

2- The Ministry shall conduct periodic reviews of these weights in accordance with the urban development priorities in the city.

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

  • A- The existence of a gap between supply and demand in developed lands.

  • B- Inflation in real estate prices.

  • C- Shortage of supply of developed lands.

  • D- Monopoly of undeveloped lands and failure to develop them.

  • E- The percentage of undeveloped lands within the urban boundary.

  • F- Urban development priorities.

• 2- An announcement shall be issued by a decision of the Minister, including the necessary data, such as:

  • A- Its date.

  • B- The name of the city that will be subject to the fee.

  • C- A map of the urban boundary that will be subject to the fee.

  • D- The duration of the deadline for submitting documents and data related to the undeveloped lands subject to the fee, and the deadline date.

  • E- The address of the electronic portal through which the obligated party is required to submit.

  • F- Specification of the documents and data required from the obligated party, including a copy of the land ownership proof document, and land data.

• 3- The announcement shall be published on the Ministry's website.

• 4- New owners of undeveloped lands, who acquired ownership of the undeveloped lands after the expiration of the deadline specified in the announcement referred to in paragraph (D) of paragraph (2) of this article, shall submit to the Ministry the documents and data related to those lands within a maximum period of thirty (30) days from the date of ownership transfer.

• 1- Within each city subject to the fee, one or more geographic zones shall be determined by a decision of the Minister, including the following:

  • A- The annual fee rate or rates.

  • B- The uses of white lands.

  • C- The minimum land area and the total area of white lands within the city.

• 2- The annual fee rate due on the white land (or group of white lands) located within the geographic zones shall be determined according to the urban development priorities within the city, as follows:

  • - First tier (highest priority): An annual fee of (10%) of the value shall be imposed.

  • - Second tier (high priority): An annual fee of (7.5%) of the value shall be imposed.

  • - Third tier (medium priority): An annual fee of (5%) of the value shall be imposed.

  • - Fourth tier (low priority): An annual fee of (2.5%) of the value shall be imposed.

  • - Fifth tier (outside priority scope): No annual fee shall be imposed, and it shall be counted within the total white lands owned by the taxpayer within the city scope.

• 3- The Ministry shall annually review the availability of units and lands, their supply, turnover volume, prices, and monopolistic practices in any city or geographic zone, to decide on applying the fee on lands therein, adjusting the area subject to the fee, or suspending the application, in accordance with the criteria set forth in paragraph (1) of this article and urban development priorities.

• 1- The application of the fee shall cease upon the occurrence of any of the following criteria:

  • A- The absence of any of the fee application requirements stipulated in Article (7) of the Regulation.

  • B- The existence of an impediment preventing the obligated party from disposing of it during the statutory period for paying the fee; provided that the obligated party is not the cause or participant in the occurrence of the impediment.

  • C- The existence of an obstacle preventing the issuance of the necessary licenses and approvals for the development or construction of the land during the statutory period for paying the fee; provided that the obligated party is not the cause or participant in the occurrence of the obstacle.

  • D- Completion of the development or construction of the land during the statutory period for paying the fee.

• 2- Without prejudice to the criteria set forth in paragraph (1) of this article; the application of the fee shall be suspended for a period determined by a decision of the Minister if the land development is completed in a manner that does not conflict with the dates of issuing the annual fee invoices in the city.

• 3- The obligated party may be granted an additional period estimated by the Committee - formed pursuant to Article (3) of the Regulation - to complete the development or construction of the land according to the land’s area and nature. If the development is not completed within that period, the due fees shall be collected in accordance with regulations issued by a decision of the Minister after the approval of the Ministerial Committee.

• 4- If the application of the fee is suspended on a part of the white land or white lands subject to the fee after the issuance of the fee invoice, it shall be applied to the remaining part thereof.

The Ministry shall take the necessary procedures to ensure the fair application of the fee and to prevent evasion of its payment, including:

1- Unifying the standards of application and evaluation in the targeted cities and zones.

2- Verifying the accuracy of the data provided about the land or the liable party, and the extent of the liable party's compliance with the provisions of the law and the implementing regulation, in coordination with the relevant authorities.

3- Calculating the fee for the previous years from the date the land became subject to the fee application decision in the city.

4- Collecting the fee for previous years shall not affect the imposition of any fine resulting from the liable party's failure to pay or failure to submit the required documents as per the law.

The Minister may take whatever he deems appropriate regarding the following:

1- Unifying the issuance dates of the annual fee invoices for each city separately.

2- Determining the amount due from the fee value for the period that was amended - as a result of unifying the invoice issuance dates according to paragraph (1) above - and specifying the payment period for the fee mentioned in paragraph (2) of Article (Thirteen), and determining the period necessary to complete the development or construction of the land referred to in paragraph (3) of Article (Eight).