Legal update
White land fees must now be paid before a land transfer is documented
A Council of Ministers decision published on 4 September 2026 ties the documentation of land transactions to proof that white land fees have been paid: the latest step in a regime that now reaches 10% a year.
Council of Ministers Decision No. 263/1448, published in the Official Gazette on 4 September 2026, provides that dispositions of land subject to the White Land and Vacant Properties Fees Law will not be documented unless payment of the fees due has been verified. In practice, unpaid fees now travel with the land and surface at the point of sale.
The decision builds on the overhaul of 2025. Royal Decree No. M/244, published on 12 May 2025, renamed the law, extended it to all vacant developable land within urban boundaries and raised the maximum annual fee from 2.5% to 10% of the land's value, for holdings of 5,000 square metres or more. It also introduced a fee of up to 5% of the equivalent rental value for developed buildings left vacant without legal justification. The white land implementing regulations followed in August 2025, and Riyadh began issuing invoices under the new rates in January 2026.
For buyers, due diligence on land in a fee zone should now include a fee statement from the seller, and the sale agreement should allocate unpaid and accruing fees expressly. For sellers, the fee position needs to be cleared before the deal timetable is fixed, not at the notary's desk.
Families and groups holding land banks should map which parcels fall within the priority zones and the threshold, and keep evidence of any development activity or legal justification that may affect liability.