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27 July 2016

Saudi Arabia's new vacant land tax hits local real estate market

Saudi Arabia's real estate market is witnessing a sharp decline in sales, now at their lowest levels. The market has experienced a significant drop of 56.7% in the total weekly sales settled at SAR1.9b (approx. US$0.5b), the lowest weekly level in a decade. The decline in sales has been attributed to: i) low demand; ii) the implementation of the vacant land tax regulations; and iii) the cautious approach adopted by investors in making property investment decisions due to fluctuations in property prices.

A Tax Alert prepared by Ernst & Young Saudi Arabia, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1289

Document ID: 2016-1289

 

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