Category Taxation in Saudi Arabia

Saudi Arabia to Levy Tax on Empty Land

May 9, 2016 Taxation in Saudi Arabia

RIYADH – Saudi Arabia hopes that its new tax will help ensure that more than half of all people in the country will own their own home by the end of 2020.

In an effort to help more families in Saudi Arabia own and live in their own home, the government has approved a new tax on undeveloped land, according to a statement made on May 8th by the Ministry of Housing of Saudi Arabia.

The new annual tax will be levied at 2.5 percent of the value of the land for as long as the land remains undeveloped.

The government hopes that the new tax will encourage builders and developers to stop simply holding land, and, instead, begin building more residential housing.

It is currently estimated that nearly half of all land in the major cities of Saudi Arabia is currently empty, and is regularly traded a...

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Saudi Arabia Eyes Land Tax

November 23, 2015 Taxation in Saudi Arabia

Saudi Arabia may turn to taxes to encourage land developers to utilize their land for residential development by implementing a 2.5 percent tax on undeveloped land.

Last week the Shura Council, a body which provides advice on legislation to the government of Saudi Arabia, approved the proposal to implement a tax on undeveloped land in the Riyadh.

It is estimated that approximately 49 percent of all land in Riyadh is currently unused, and, similarly, 50 percent of land and Dammam and 40 percent in Jeddah is also undeveloped.

The council recommended that the owners of the land be taxed at a rate of 2.5 percent of the value of the land if it remains undeveloped.

In Saudi Arabia it is common for wealthy developers to purchase land but not engage in any actual development, instead opting to ...

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Saudi Arabia To Enact Tax on Empty Land

March 24, 2015 Taxation in Saudi Arabia

RIYADH – Housing affordability in Saudi Arabia will soon improve, as the government sets out to enact a new tax on empty land being hoarded by developers.

On March 23rd the Cabinet of Saudi Arabia approved a new proposal to enact a tax on underdeveloped land which is suitable for urban development, a move which is intended to help address the country’s growing housing shortage.

Details are not yet available on the size of the tax or how it will be implemented, but the newly proposed measure is being considered as urgent, and all steps are being taken to implement the tax without delay.

Currently it is estimated that as many as half of the citizens of Saudi Arabia live in rented houses, and the rate of home ownership in the country is approximately half of the average rate in other OEC...

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