Massive fee restructuring set for state property use in Kuwait; effective July 1

The upcoming update to fees and financial allowances for the use of state property in Kuwait is scheduled to come into effect on July 1, 2025. This revision is part of the government’s broader plan to strengthen the financial system and ensure greater fairness in the calculation of usufruct allowances.

The amended fees will apply to various sectors, including sports facilities, public utilities, administrative, commercial, and agricultural contracts, commercial stores, restaurants, cafes, administrative-use areas, warehouses, and wedding halls, based on detailed schedules outlined in the new regulations.

One of the most notable changes is the significant increase in waterfront usage fees, which will rise to 250 dinars per linear meter — five times the previous rate of 50 dinars set under Resolution No. 40 of 2016. The fee for land usage has been set at 2 dinars per square meter for the first row of chalets and plots, and 1.5 dinars for the second row.

Requests to add or remove facilities will incur a fee of 10 dinars per request. Those wishing to transfer exploitation rights for a chalet or plot along the waterfront will be required to pay 3,000 dinars per linear meter in the first row and 1,500 dinars per meter in the second row.

Fees for dividing first-row chalet plots into new units are set at 5,000 dinars per new chalet, and 2,500 dinars in the second row. The withdrawal fee for heirs reaches 10,000 dinars for the first row and 5,000 dinars for the second, with an additional 300 dinars charged for requests to merge or define boundaries.

Supporting national goals related to food security and strategic sectors, the fee for agricultural production, including livestock farms, bee farms, and nurseries, is set at 65.5 dinars per 10,000 square meters. Animal and food production fees are each set at 32.5 dinars per 10,000 square meters. Fees for purebred Arabian horse stables will be 12 fils per square meter.

Land used for other purposes will be charged varying rates: nurseries at 13.7 dinars per square meter; public benefit facilities at 440 fils; sports clubs and federations at 10 fils; and hospitals and veterinary clinics at 3.66 dinars.

Banks and insurance firms face a fee of 261 dinars per square meter. Commercial shops will pay 100.02 dinars, while restaurants, cafes, and similar outlets are subject to a fee of 138.6 dinars per square meter.
The cost for fodder sales outlets has been set at 480 dinars per unit. Landscaping areas, including fountains and gardens under base contracts, are charged 9.03 dinars per square meter, while infrastructure projects, bridges, and coastal installations are set at 12 dinars.

To amend or expand licenses or change contract activities, a fee of 100 dinars per request has been designated. The fee to transfer land plots—excluding agricultural ones—is 2,500 dinars.

The revised schedule also addresses cooperative societies, setting the usufruct fee at 7.89 dinars per square meter for their central markets, administrative spaces, and investment stores. Warehouses are charged 1.5 dinars per square meter, and wholesale supply areas are priced at 3.5 dinars. Unused spaces will be charged at 10 dinars per square meter, and nurseries also fall under the 1.5 dinars per square meter rate.

Parking spaces will carry a usufruct fee of 2.1 dinars per square meter for new and renewed contracts, applied to 52 percent of the building’s total surface area. Transfer fees in these cases are set at three times the rental value.

Healthcare facilities are also affected, with land usage set at 10 dinars per square meter for both new and renewed contracts, and 5 dinars for buildings. Here, too, transfer fees amount to three times the rental value.

For resort areas, the new fees include 400 dinars per square meter for waterfront land, 2 dinars for open areas such as pools, 27.7 dinars for investment projects, and 5 dinars for any type of structure. Transfer fees remain consistent at three times the rental value.

Fuel stations are subject to 3.88 dinars per square meter for the station area itself, while car wash sections within these stations are charged at 18.74 dinars per square meter. Warehouses operated by the Kuwait National Petroleum Company are charged 440 fils per square meter. A tax of 30 percent on revenue has been introduced and applies to all categories of sub-used land.

Private universities will pay 10 dinars per square meter for the first 6,000 square meters of land, with any additional space charged at 520 fils per square meter. Renewed contracts are subject to the same 10-dinar rate for the base area. Foreign and bilingual schools follow a similar structure: 10 dinars for land under new or renewed contracts, 5 dinars per school building, and triple-rent transfer fees.

According to sources cited by Al-Rai, the revised regulations for state-owned real estate reflect the Ministry of Finance’s objectives to boost the efficiency of property management, promote fairness and transparency in fee collection, protect public funds, and encourage sustainable development. The changes are also designed to enhance the country’s investment climate and economic competitiveness.