Arabic
Issued by Royal Decree D/244
1․ The name of the law is hereby amended to be:
The Idle Lands and Vacant Real Estate Fees Law.
2․ Article 1 of the law is hereby amended to read as follows:
Article 1
The following words and phrases—wherever they appear in this law—have the meanings assigned to each of them, unless the context requires otherwise:
Minister:
The Minister of Municipalities and Housing.
Ministry:
The Ministry of Municipalities and Housing.
Law:
The Idle Lands and Vacant Real Estate Fees Law.
Regulations:
Regulations necessary to implement the law relating to idle land fees and vacant real estate fees.
Vacant real estate:
Buildings located within an urban area that are not exploited for a long time without acceptable justification, and whose non-use or non-exploitation affects the provision of sufficient supply in the real estate market, in accordance with the provisions of the law and the regulations.
Idle lands:
Every empty land capable of being developed and urbanized, within the boundaries of an urban area.
Ministerial committee:
The ministerial committee stipulated in article 14 of the law.
3․ Article 2(2) of the law is hereby amended to read as follows:
2․ Increasing the supply of real estate units.
4․ Article 3 of the law is hereby amended to read as follows:
1․ An annual fee not exceeding 10% of the value of the land must be imposed in accordance with the controls specified by the regulations on idle land owned by one or more natural or legal persons, with the exception of state real estate.
2․ The minister shall issue decisions determining the scope of application of the fees and the area of the land subject to the application, provided that the area of this land or the total land subject to application as specified by the regulations is not less than five thousand square metres.
3․ An annual fee must be imposed on vacant real estate at a rate of the equivalent rent and not exceeding 5% of the value of the real estate, in accordance with the law and the regulations, and this does not include state real estate. The Council of Ministers may increase this percentage to 10% based on a proposal from the ministerial committee.
5․ Article 4 of the law is hereby amended to read as follows:
Article 4
1․ The idle land fees regulations referred to in article 3(1) of the law must specify the following:
(a) Controls and conditions for applying the fee.
(b) Criteria for determining the lands subject to the application of the fee.
(c) Criteria upon which the application of the fee ceases.
(d) Controls necessary to ensure fair application of the fee and to prevent evasion of its payment.
(e) Mechanism for determining the public services availability coefficient for land and the connection of public utilities to it.
(f) Criteria for determining obstacles to the issuance of licenses and approvals necessary for the development or construction of the land, which are relied upon in determining that the fee does not apply to it.
(g) Rules and procedures for collecting the fee and determining the entities authorized to collect it.
(h) Mechanisms for notifying the owner of the land—or his equivalent—of the decisions issued against him.
(i) Any other detailed provisions relating to the application of the provisions of idle land fees.
2․ The vacant real estate fees regulations referred to in article 3(3) of the law must specify the following:
(a) Controls and conditions for applying the fee to vacant real estate.
(b) Criteria for determining vacant real estate subject to the application of the fee.
(c) Period after which the real estate is considered vacant.
(d) Determining the percentage of the fee imposed annually on the vacant real estate, provided that it does not exceed in all cases 5% of the value of the real estate.
(e) Determining the mechanism for collecting the fee.
(f) Criteria upon which the application of the fee ceases.
(d) Controls necessary to ensure fair application of the fee and to prevent evasion of its payment.
(h) Mechanism for notifying the owner of vacant real estate—or his equivalent—of the decisions issued against him.
(i) Any other detailed provisions relating to the application of the provisions of vacant real estate fees.
6․ Article 5 of the law is hereby amended to read as follows:
Article 5
1․ The owner of the land—and his equivalent—whose land is announced to be subject to the application of the fee referred to in article 3(1) of the law shall submit to the ministry documents and data relating to his land, as specified in the regulations, including the period and the controls of the announcement.
2․ The new owner of the land—and his equivalent—who become subject to the application of the fee referred to in article 3(1) of the law to whom the ownership of such land is transferred, shall, after the expiry of the period specified for the announcement referred to in paragraph 1 of this article, submit to the ministry the documents and data relating to their land, within the period specified by the regulations.
3․ The owner of the land—and his equivalent—must be notified of the amount of the fee owed by him, in accordance with the notification mechanisms specified in the regulations.
4․ Subject to the provisions of the law relating to vacant real estate, the regulations and provisions stipulated in this article must be determined in accordance with the nature and uses of vacant real estate.
5․ The owner of the real estate shall—in all cases—be primarily responsible for paying the fees or fines provided in the law, unless whoever is equivalent to the owner of the real estate pays such fees or fines.
7․ Article 6 of the law is hereby amended to read as follows:
Article 6
Whoever violates the provisions of the law and regulations must be punished by a fine not exceeding the amount of the fee due on his land or vacant real estate, and this does not prejudice the obligation of the violator to pay the fee due.
8․ Article 7 of the law is hereby amended to read as follows:
Article 7
One or more committees must be formed by a decision by the minister, consisting of—at least—three members, provided that they include a legal adviser and a technical specialist to consider violations of the provisions of the law and regulations, application of the punishments, and objections submitted by those concerned and to issue the necessary decisions. It is permitted to file a grievance against its decisions before the competent administrative court. The work rules of the committee and its procedures must be issued by a decision by the minister.
9․ Article 8 of the law is hereby amended to read as follows:
Article 8
The owner of the land or vacant real estate—or his equivalent—has the right to object to the decisions issued to subject his land or vacant real estate to the application of the fee, or to assess the value of the land or vacant real estate or the amount of the fee due on it. The objection must be submitted in writing to the committee stipulated in article 7 of the law within 60 days from the date of his notification of the decision. The committee shall decide on this objection within 60 days from the date of its submission to it, and the lapse of 60 days without deciding on the objection is considered a rejection decision.
10․ Article 9 of the law is hereby amended to read as follows:
Article 9
The ministry shall—in coordination with the relevant entities—implement the provisions of the law and regulations.
11․ Article 11 of the law is hereby amended to read as follows:
Article 11
The amounts of fees and fines collected must be deposited in a dedicated account with the Saudi Central Bank designated for disbursement on housing projects in accordance with the regulations.
12․ Article 12 of the law is hereby amended to read as follows:
Article 12
The ministry shall—in coordination with the relevant entities—undertake the necessary measures to raise awareness of the provisions of the law and regulations.
13․ Article 13 of the law is hereby amended to read as follows:
Article 13
The ministry shall prepare the regulations and the ministerial committee shall approve them. Each regulation must be issued by a decision by the minister.
14․ Article 14 of the law is hereby amended to read as follows:
Article 14
The Council of Ministers shall form a ministerial committee, which shall supervise the implementation of the law, propose matters it deems appropriate in regard to it, and submit an annual report in this regard to the Council of Ministers.
Published in Umm Al-Qura 5086 issued on 13 May 2025.
