Saudi Arabia sits 37th out of 217 in our world ranking, with a FiScore of 7.4 out of 10. There is no personal income tax, at any level, on any kind of income.
That fact is not new. What is new, and what almost nobody has noticed outside the Gulf, is that you can now live there without a Saudi sponsor.
The tax picture, in four lines
| Tax | Rate |
|---|---|
| Personal income | none |
| Corporate | 20% |
| VAT | 15% |
| Capital gains for individuals | none on ordinary personal investment |
The 15% VAT is what keeps the score off the top of the table: it is one of the highest in the Gulf, three times the Emirati rate. On income, however, Saudi Arabia takes nothing, and unlike the UAE it has not introduced a corporate tax on small business profits.
The kafeel is the thing that changed
Until recently, living in Saudi Arabia meant an iqama tied to a Saudi sponsor, the kafeel. Your employer held your status. Changing jobs, starting a business or owning property ranged from difficult to impossible, and leaving sometimes required permission.
The Premium Residency, launched in 2019 under Vision 2030, removes the sponsor entirely. A holder may live, work, own property and run a business in their own name.
Two routes carry documented figures:
| Cost | ||
|---|---|---|
| Unlimited, permanent | SAR 800,000 once, about USD 213,000 | no renewal, no expiry |
| Annual, renewable | SAR 100,000 a year, about USD 26,700 | same rights, renewed yearly |
Five further categories exist, aimed at investors, entrepreneurs, property owners and specialised talent. Their conditions vary from source to source, so we describe the two above and leave the others to be checked case by case.
Family is included: spouse, children and parents live under the same status, and the spouse and dependent children may work in the private sector.
What this is really worth
Compare it with what the region offers.
Dubai has a 9% corporate tax since June 2023 and a residence tied to a company or a property purchase. Saudi Arabia has no personal tax, no corporate tax on an individual's own income, and a residence you buy outright and hold in your own name.
The annual route is the interesting one for a mobile founder: USD 26,700 a year is a real cost, but it is a cost with no sponsor attached, no employer, and no company to maintain purely for immigration purposes.
The honest reservations
It is Saudi Arabia. Daily life is governed by rules that have loosened considerably but remain far from European or Emirati norms. Anyone considering this should spend time there before paying anything, and should read about it somewhere other than a tax site.
Cost is not the barrier, acceptance is. Premium Residency is granted, not bought: the fee comes after approval.
No income tax does not mean no obligations at home. An American remains taxable on citizenship. A departing European still has to leave properly, which is a separate piece of work. See our guide on leaving tax residence properly.
Sources
- Absence of personal income tax and 15% VAT: our country data, sources cited on the country page
- Premium Residency, categories and the two documented price routes: Immigrant Invest, Henley & Partners, KSA Expats
- Removal of the kafeel requirement for Premium Residency holders: same sources