White land tax

White land tax in Saudi Arabia targets undeveloped urban land with the aim to curb land hoarding and promote development. Administered by the Ministry of Municipalities and Housing (MOMAH), the tax applies to lands in designated zones and is assessed annually at tiered rates. Under the updated law, a similar tax applies to vacant real estate that remain unused for extended periods without valid justification. This policy supports the Kingdom’s broader goals to stimulate urban growth, optimize land use, and address housing demands. Property owners are required to fulfill obligations such as registering their land and paying any applicable taxes.

KPMG professionals can help assess exposure, manage registration and compliance, and ensure alignment with the latest regulatory requirements.

Some of the services we offer to our clients include:

• Support with land registration for the purpose of settling white land tax
• Guidance on documentation requirements
• Advisory on eligibility for tax suspension or extension
• Assistance with refund claims where applicable
• Support with white land tax dispute resolution