Since April 2025, Saudi Arabia’s white land regime has technically covered two different things: empty land, and empty buildings. They now sit under one renamed law — the “White Land and Vacant Real Estate Tax Law” — which is exactly why so many landowners conflate them. But as of this writing, only one of the two is actually being enforced. Confusing them is an easy, and potentially costly, mistake.
One Law, Two Separate Fee Streams
On 29 April 2025, the Council of Ministers approved amendments under Royal Decree No. M/244 that expanded the original 2016 White Land Fees Law to also capture vacant real estate — meaning developed buildings, not just empty plots — within urban boundaries. The law was renamed accordingly. But “one law” does not mean “one set of rules.” The amendments created two distinct fee mechanisms with different rates, different implementing regulations, and — critically — different implementation timelines.
White Land Tax: Undeveloped Land
This is the original, longer-standing component, targeting undeveloped urban land parcels of 5,000 square metres or more. Its Implementing Regulations were published in the Official Gazette on 22 August 2025, and it is fully in force — Riyadh’s first billing cycle under the new rate went out on 1 January 2026, reaching more than 60,000 landowners at up to 10% of land value annually.
If you own raw, undeveloped land above the size threshold in a designated zone, this is the regime that applies to you today, with a live registration process, live invoicing, and a live 10% ceiling rate.
Vacant Real Estate Tax: Developed But Unoccupied Property
This is the newer component, targeting real estate that has already been built but sits vacant — unoccupied residential or commercial buildings, effectively. Under the April 2025 amendments, vacant real estate within urban boundaries can be taxed at up to 5% of the property’s value, with that ceiling potentially raised to 10% based on a ministerial committee’s recommendation.
As of this writing, the dedicated Implementing Regulations for the vacant real estate component have not been published — only the white land component’s regulations have been issued. The amendments specified that vacant real estate regulations, including how “vacant” itself will be defined for a building, would be issued within a year of the April 2025 publication. Owners of unoccupied — but developed — property should not assume the same live enforcement applies to them that already applies to undeveloped land owners.
Why This Distinction Actually Matters
Two very different practical positions follow from which category a property falls into:
- Undeveloped land owners face live registration deadlines, live invoicing, and a real, enforced 10% rate today — the Riyadh 2026 cycle proves this is not theoretical.
- Vacant building owners are not yet subject to an enforced fee under this specific law, because the operative regulations — including the definition of what counts as “vacant” for a finished building — have not been issued. Treating a vacant building as though it already carries a live 5%–10% annual charge would be acting on rules that do not yet exist in enforceable form.
This is not a reason for owners of vacant developed property to relax indefinitely. The amendments already set the direction and the rate ceiling; only the operational detail — definitions, thresholds, registration mechanics — remains to be published. When it lands, it is reasonable to expect a rollout similar to White Land Tax’s: implementing regulations, followed by a phased billing cycle starting in a major city.
What to Watch For
The April 2025 amendments indicated Vacant Real Estate Tax regulations would follow within a year of publication — meaning owners of unoccupied developed property should expect implementing regulations to surface around April 2026 or shortly after, based on that stated timeline, though government rollout schedules for White Land Tax itself already shifted once from an earlier projected date. Owners holding vacant, developed property in a major urban centre should treat this as a near-term, not distant, planning question — not because the fee is active yet, but because the White Land Tax rollout showed how quickly “regulations issued” can turn into “invoices sent” once the Ministry moves.
Frequently Asked Questions
No, though they now sit under one renamed law (the White Land and Vacant Real Estate Tax Law, amended April 2025). White Land Tax targets undeveloped land; Vacant Real Estate Tax targets already-built but unoccupied property. They have different rates and different implementation status.
Not yet, as of this writing. Only the White Land Tax component’s Implementing Regulations have been published and enforced (from 22 August 2025, with Riyadh billing starting 1 January 2026). The Vacant Real Estate Tax’s own implementing regulations, including the definition of ‘vacant’ for a building, had not been issued.
Up to 5% of the property’s value under the April 2025 amendments, with that ceiling potentially raised to 10% based on a ministerial committee’s recommendation — though the operative implementing regulations to make this enforceable had not yet been published as of this writing.
The April 2025 amendments indicated regulations would follow within a year of publication, suggesting a target around April 2026 or shortly after. The White Land Tax rollout itself shifted once from an earlier projected timeline, so this should be treated as an estimate, not a guarantee.
White Land Tax — the currently enforced component, at up to 10% of land value, with registration and billing already live as of the 2026 Riyadh cycle.
Not under the Vacant Real Estate Tax component specifically, since its implementing regulations were not yet in force as of this writing. This is a near-term planning question, not an immediate live obligation — but it is worth monitoring given how quickly the White Land Tax component moved from regulations to actual billing.
- The White Land and Vacant Real Estate Tax Law (amended April 2025) now covers two distinct fee streams: undeveloped land and vacant developed property.
- White Land Tax (undeveloped land) is fully enforced — implementing regulations issued August 2025, Riyadh billing began January 2026 at up to 10% of land value.
- Vacant Real Estate Tax (developed but unoccupied property) was not yet enforced as of this writing — up to 5% (potentially 10%) is set by the amendments, but implementing regulations, including the definition of ‘vacant,’ had not been published.
- Vacant Real Estate Tax regulations were expected roughly a year after the April 2025 amendments, around April 2026, though White Land Tax’s own timeline already shifted once.
- Owners of vacant developed property should treat this as a near-term planning issue, not an active liability — but should not assume it stays dormant indefinitely.
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Sources
- MOMRAH — Implementing Regulations of the White Land Fees Law — official White Land Tax regulations, rates, and thresholds
- KPMG — Saudi Arabia Implementing Regulations, Amendments: White Land Tax — confirms vacant real estate regulations ‘expected within the coming year’
- Addleshaw Goddard — Amendments to Saudi Arabia’s White Land Tax Law — April 2025 amendment details, vacant real estate scope and rate ceiling
- AGBI — Saudi Arabia Bills 60,000 Landowners Under New Tax Rule — confirms White Land Tax enforcement status via Riyadh’s January 2026 billing
This article is based on Saudi Arabia’s April 2025 amendments to the White Land and Vacant Real Estate Tax Law, MOMRAH’s published Implementing Regulations for the White Land Tax component, and legal/professional-services reporting confirming that Vacant Real Estate Tax regulations remained unpublished as of the sources’ respective publication dates. Regulatory status can change quickly — confirm current enforcement status directly with MOMRAH before relying on this article for a specific property. This article does not constitute legal or tax advice. dariba.co is an independent platform with no consulting relationships.