Procedures for Identifying White Lands and Payment of Fees

Procedures for Identifying White Lands and Payment of Fees

Pursuant to Royal Decree No. (M/244) dated 07/11/1446 AH, amending the White Land Fees Law, and the subsequent issuance of the new Implementing Regulations, the legal procedures for identifying lands subject to fees and the modalities of payment have been clarified.

1. Cities Subject to White Land Fees

Article 5 of the Law stipulates that a city becomes subject to the fees where the following conditions exist:

• A gap between supply and demand of developed lands.
• Inflation in real estate prices.
• Shortage of developed land supply.
• Retention of undeveloped lands without development.
• The percentage of white lands within the urban boundary.
• Urban development priorities.

2. Determination of Lands Subject to the Fees

The Minister issues a decision specifying the lands subject to the fees, which must include:

• Date of the decision.
• The city subject to the fees.
• A map of the urban boundaries covered.
• The deadline for submitting the required documents and the date of expiry.
• The official electronic portal for submissions.
• The documents to be provided, including proof of ownership and land data.

Such announcements are published on the Ministry of Municipal and Rural Affairs and Housing website.

3. Fee Rates and Calculation

Under Article 6, the Minister’s decision defines for each city:

• The applicable annual fee percentages.
• Land use categories.
• The minimum land size and aggregate threshold for white lands.

4. Conditions for Applicability of the Fees

Article 7 sets forth the conditions for subjecting land to the fees:

• It must be undeveloped (white) land.
• It must be suitable for development or construction.
• It must fall within the designated fee zones as announced.
• The area, or the aggregate of lands owned by the same owner within the city, must be at least 5,000 sqm.
• Its use must correspond to that identified in the ministerial decision.

Owners of lands not meeting these conditions may file an objection, lodge a grievance, and pursue litigation before the Administrative Court.

5. Ministry Notification and Invoicing

Article 11 of the Regulations requires that fee invoices include, at minimum:

• Taxpayer’s name and official particulars.
• Ownership document number.
• Land location.
• Legal reference for the invoice.
• Applicable fee percentage.
• Amount payable.
• Payment deadline and method.
• Consequences of non-payment or delay.
• The right to object and the applicable timeframe.

6. Payment Deadlines

Article 13 provides:

• Payment must be made within one Gregorian year from the invoice date.
• For previous years’ fees, settlement must occur within 90 days from the invoice notification.
• Extensions for development extend the payment period accordingly.
• Fees paid may be reclaimed if the land is developed within the statutory (or extended) timeframe.
• Upon sale of undeveloped land, all outstanding fees must be settled prior to transfer of ownership.

7. Impact of Surrounding Services on Fee Value

Article 4 emphasizes that valuation is influenced not only by land size and location but also by availability of essential services and infrastructure. Each service is assigned a specific weight (score) reflecting its importance and impact on land value.

Weights are standardized within each city to ensure consistency and transparency, though subject to periodic review by the Ministry.

FAQs

Do new owners of white lands pay the fees?

Yes. New owners are liable if the transfer occurs after the ministerial announcement deadline, and must submit the required documents within 30 days of transfer.

What happens if payment is delayed?

A late penalty is imposed.

What is the statutory payment period?

One Gregorian year from the invoice issuance date.

Conclusion

Al-Salamah Law Firm offers comprehensive legal advisory services to help clients understand the new White Land Fees framework and its Implementing Regulations. Should you wish to file an objection or pursue legal remedies, our team is ready to provide the necessary support and representation.