The Nature of Vacant Land and Its Significant Types

Initially, we would like to define what is meant by ‘vacant land’. This term refers to land that is either unutilized or neglected. Consequently, the government has taken several measures to address this issue by imposing fees on such land to encourage owners to develop and exploit it.

In 2016, the Cabinet approved charging fees on vacant land within cities and villages at a rate of 2.5% of the annual land value. Then, in 2020, a decision was issued to increase these fees to 5% annually.

Moreover, agricultural and residential lands are exempt from these fees, as the fees are directed toward land prepared for investment and developmental projects. A grace period of one year before the implementation of the fees was granted to give owners ample time to develop their lands.
We would like to point out that the primary objective of imposing these fees is to increase the real estate supply, lower prices, encourage investment and boost the wheel of real estate and economic development. However, some developers believe that the fees are high and may discourage some from investing.

The imposition of fees on vacant lands requires certain conditions, including:

On the other hand, there are some lands exempted from fees imposition, including:

In conclusion, vacant lands are one of the most critical issues facing urban development. These vast unutilized lands pose a burden on the state’s economy. Therefore, the government constantly addresses this issue by imposing fees on these lands. All these policies are a positive step towards achieving wealth distribution justice, promoting productive real estate investment, and reducing real estate speculation. Through these ongoing government efforts, the effectiveness and efficiency of these fee applications are ensured, leading to the elimination of the phenomenon of vacant lands and benefiting the national economy and the community as a whole.