Saudi Cabinet Approves 2.5% Annual Tax on Undeveloped Urban Land - Bloomberg Business

Saudi Cabinet Approves 2.5% Annual Tax on Undeveloped Urban Land - Bloomberg Business:

"Saudi Arabia’s cabinet approved a landmark tax on undeveloped urban land to encourage the development of empty real estate and address a housing shortage.
The regulation mandates an annual tax of 2.5 percent "on all empty land dedicated for residential or commercial-residential use inside the urban boundaries," according to a cabinet statement published on the official Saudi Press Agency Monday. The tax will be applied gradually "and with the necessary controls to ensure the fair application of the fine and prohibit evading payment," it said.
The law, approved last week by the Shoura Council, an advisory body, is an attempt to address a shortage of housing by taxing so-called "white land," or urban plots that lie empty because their owners have no incentive to build on them. Pushing owners to build or sell the land may enable the government to avoid expensive construction in the desert as it seeks to address a shortage estimated at 1.5 million affordable homes."



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