Zawya - News: Details: Saudi Arabia imposes fees on vacant properties to regulate the market
Tadawul All Shares Index TASI.SA | 0.00 | |
Parallel Market Capped Index (NomuC) NOMUC.SA | 0.00 |
Amna Assem
Saudi Arabia has decided to impose fees on vacant or unused properties, according to a government statement carried by the Saudi Press Agency on Wednesday, in a move aimed at increasing the supply of housing units to meet the growing demand for housing in the Kingdom, which is supported by its expansions in non-oil sectors.
In September 2025, Saudi Arabia decided to suspend the annual increase in the total value of rents in residential and commercial property lease contracts (existing or new) in Riyadh for a period of five years, in order to counter inflation in rental prices, which has a significant impact on the inflation index in the Kingdom.
The Ministry of Municipalities and Housing announced in its statement issued on Wednesday the adoption of the executive regulations for vacant property fees, which defined a vacant building - that is, one to which the decision will apply - as a building that is not used or exploited for six consecutive or non-consecutive months during the year.
Details of the decision
(According to the statement)
The decision to impose fees aims to utilize vacant buildings and increase the supply of residential and commercial units in order to support market and price balance.
The statement did not specify the locations of the units on which the decision will be implemented, which will be announced later, according to criteria that include: vacancy rates, supply and demand levels, prices, and housing costs.
- The fee is estimated based on the fair market rent for the building according to approved evaluation standards, provided that an annual fee is imposed at a rate not exceeding (5%) of the building’s value, taking into account the average market and rental values of similar properties.
- The taxpayer, whether an individual or a legal entity, is obligated to pay the fee according to the percentage of his ownership in the case of multiple owners.
(Prepared by: Omnia Assem, Edited by: Shaimaa Hefzy, Contact: zawya.arabic@lseg.com)
#Economic News
To subscribe to our weekly report covering economic news developments, register here.
Zawya platform disclaimer
Articles on the Zawya platform are provided for informational purposes only; the content does not offer any legal, investment, or tax advice, nor does it provide opinions regarding the suitability, profitability, or strategy of any investment or business portfolio . Terms and conditions apply.