Middle East

Saudi Arabia: tax at a glance

There is no personal income tax, but a 20% corporate tax applies to foreign-owned profit, along with a 2.5% Zakat on nationals and a 15% VAT.

No personal income tax Last verified

The taxes

Personal income (top)
0%There is no personal income tax on individuals. Saudi and GCC nationals pay 2.5% Zakat instead of tax on business.
Corporate income
20%
Capital gains
Exempt for individuals. There is no personal capital gains tax.
VAT
15%
Dividends (WHT)
5%
Interest (WHT)
5%
Royalties (WHT)
15%
Social security (employee)
9.75% for Saudis; 0% for expats.
Social security (employer)
11.75% for Saudis; 2% for expats, covering occupational hazard only.
Wealth tax
None. Zakat of 2.5% applies to nationals' Zakat base.
Inheritance / estate
None. Sharia law governs estate distribution.
Property tax
There is no annual property tax. A 5% Real Estate Transaction Tax applies on transfers, and a White Land Tax applies to vacant urban land.
Other
Zakat of 2.5% applies to the Saudi/GCC-owned share; oil and gas profits are taxed at 50–85%.

How the system works

Tax system
No personal income tax
Taxes by citizenship
No
Exit tax
No
CFC rules
No
CRS
Participating

A special regime for new arrivals

The corporate income tax is 20% on the non-Saudi share of profits. Zakat runs 2.5% on the Saudi or GCC share. VAT is 15%. Regional Headquarters (RHQ) licence holders get a 30-year tax incentive package.

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Sources (2)

Secondary references

Your tax position is not a footnote to your move

It is usually the largest number in the decision. Bring us your citizenship, your residency history and your asset mix. We will model it before you commit to anything.