Saudi Arabia has no personal income tax—expats keep 100% of their salary. However, Saudi citizens pay 2.5% Zakat (Islamic wealth tax) on certain assets. GOSI social security applies to Saudi nationals only: employees pay 9% pension (annuities) + 0.75% SANED unemployment = 9.75% total; employers pay 9% pension + 2% occupational hazard + 0.75% SANED = 11.75%. Expats pay zero employee contributions. Expats pay 2% GOSI levy only. 15% VAT applies to most purchases (increased from 5% in 2020). Saudi Arabia recently introduced Premium Residency—a Green Card-style program allowing non-Saudis to live and work without employer sponsorship. No capital gains tax, no inheritance tax. ZATCA administers corporate tax (20% on non-GCC foreign company profits). Filing deadline: none for individuals. Use our calculator to compare Saudi Arabia with taxable countries.
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No personal income tax applies in Saudi Arabia for anyone—Saudi or expat. However, Saudi and GCC nationals must pay 2.5% Zakat (Islamic wealth tax) calculated on eligible assets including cash, investments, and business holdings. This is religious obligation administered by ZATCA but functions like a wealth tax.
GOSI (General Organization for Social Insurance) is Saudi's social security. Saudi employees pay 9% pension (annuities) + 0.75% SANED unemployment = 9.75% total. Employers pay 9% pension + 2% occupational hazard + 0.75% SANED = 11.75% total. Expats pay zero employee GOSI contributions — only the employer pays a 2% occupational hazard levy on expat salaries. GOSI covers retirement, disability, death benefits, and workplace injuries. Expats don't receive pension benefits.
Premium Residency launched in 2019 allows foreigners to live and work in Saudi Arabia without employer sponsorship. Two options: permanent (SAR 800,000 lump-sum, ~$213,000) or renewable (SAR 100,000/year, ~$27,000). Benefits include property ownership, self-employment, and family sponsorship. Similar to US Green Card but without path to citizenship.
Saudi Arabia introduced 5% VAT in 2018, raised to 15% in July 2020 during the oil price crash. VAT applies to most goods and services. Exemptions include basic food items, healthcare, education, and financial services. Zero-rated items include exports and international transport. Businesses above SAR 375,000 revenue must register.
Foreign companies (non-GCC) operating in Saudi pay 20% corporate income tax on Saudi-source profits. Saudi and GCC-owned businesses pay 2.5% Zakat instead. Mixed ownership applies proportional rates. Withholding tax of 5-20% applies to payments to non-residents for royalties, technical fees, dividends, etc. Tax treaties may reduce these rates.
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Last Updated: May 2026