White Land Tax generates a lot of questions we don’t see for ZATCA’s more established taxes — partly because it’s genuinely new in its current form, and partly because it’s administered by a different government body entirely. Below are the questions landowners actually ask, answered directly.
The Basics
White Land Tax is an annual fee on undeveloped urban land of at least 5,000 square metres, administered by the Ministry of Municipal, Rural Affairs and Housing (MOMRAH) — not ZATCA. It was overhauled under Royal Decree No. M/244 (approved 29 April 2025), with Implementing Regulations published 22 August 2025, and the rate raised to up to 10% of land value, up from 2.5% previously. Riyadh’s first invoicing cycle under the new rate went out on 1 January 2026 to more than 60,000 landowners.
Frequently Asked Questions
The Ministry of Municipal, Rural Affairs and Housing (MOMRAH), not ZATCA. This is a separate government body from the one that administers VAT, CIT, WHT, Zakat, and RETT.
Up to 10% of the land’s value annually, effective for the January 2026 billing cycle — tripled from the previous 2.5% rate.
Parcels of at least 5,000 square metres, whether a single plot or combined holdings by one owner within a single city. Land below that size is not subject to the fee.
Riyadh is the confirmed rollout city, with its first billing cycle under the new rate issued 1 January 2026 to over 60,000 landowners. Other cities are subject to the same national framework, with zones designated city-by-city by ministerial decision.
Through MOMRAH’s dedicated electronic registration portal, within the statutory period announced in official publications once your land is confirmed to fall inside a designated zone.
In Riyadh’s 2026 cycle, landowners must either pay the fee or begin development within a year of the invoice. There is no indefinite holding option once a parcel is inside a designated zone and has been billed.
Yes — where a genuine legal impediment not caused by the owner prevents permit issuance, where development is completed within the statutory payment period, or where the Ministry grants a discretionary extension based on the land’s nature and size.
No. They now sit under one renamed law but are separate fee streams. White Land Tax targets undeveloped land and is fully enforced. Vacant Real Estate Tax targets unoccupied developed buildings, is capped at up to 5% (potentially 10%), and its implementing regulations had not yet been published as of this writing.
No, they are entirely separate. RETT applies to the transfer of real estate ownership and is administered by ZATCA. White Land Tax applies to holding undeveloped land and is administered by MOMRAH. Both can apply to the same property at different points — holding it (White Land Tax) and later selling it (RETT).
The Ministry’s stated policy goal is to reduce land banking, increase the supply of developed land, and balance housing supply and demand as part of the Kingdom’s Vision 2030 housing agenda. The tripled rate is designed to make holding undeveloped land materially more costly relative to developing or selling it.
Riyadh’s January 2026 billing cycle: over 60,000 landowners were invoiced, and land transactions fell 55% year-on-year in the following quarter, with total land sale value down 65% to SAR 20.71 billion — a clear, measurable market response to real enforcement.
MOMRAH’s Etmam Developers Services Center is designed to expedite master plan and building permit approvals for landowners moving toward development rather than paying the fee.
- White Land Tax is a MOMRAH-administered fee (not a ZATCA tax) on undeveloped urban land of 5,000 m² or more, currently up to 10% of land value.
- Riyadh’s January 2026 billing cycle reached over 60,000 landowners, with a measurable market impact — a 55% drop in transactions and 65% drop in sale value in the following quarter.
- Registration runs through MOMRAH’s electronic portal; landowners must pay or begin development within a year of an invoice.
- Exemptions exist for legal impediments and completed development, but require active engagement with MOMRAH’s process, not automatic application.
- Vacant Real Estate Tax is a separate, not-yet-enforced component of the same renamed law — don’t confuse the two.
Continue Reading
Sources
- MOMRAH — Implementing Regulations of the White Land Fees Law — official rates, thresholds, exemptions, registration process
- AGBI — Saudi Arabia Bills 60,000 Landowners Under New Tax Rule — January 2026 Riyadh billing cycle
- AGBI — Saudi Land Sales Slump After Higher Tax Kicks In — Q1 2026 market impact figures
- KPMG Saudi Arabia — Publication of Implementing Regulations for White Land Tax — legal timeline and Royal Decree reference
This FAQ is based on MOMRAH’s official Implementing Regulations for the White Land Fees Law and contemporaneous reporting on the January 2026 Riyadh billing cycle. White Land Tax is administered by MOMRAH, not ZATCA. It is provided for general information only and does not constitute legal or tax advice. Confirm current zone designations, rates, and deadlines directly with MOMRAH before relying on this article for a specific parcel. dariba.co is an independent platform with no consulting relationships.