Saudi Arabia: Taxes and Costs

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Income tax is low in Saudi Arabia

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	nil	nil	nil
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Non-Saudi and Non-GCC National

Non-Saudi and non-GCC nationals are taxed on their Saudi Arabia-sourced income.

Non-resident individuals earning rental income from Saudi Arabia are subject to a final withholding tax of 5% levied on the gross rent.

GCC National

Zakat is an Islamic direct tax on property and income. Zakat is payable by citizens of the Gulf Cooperation Council (GCC) in lieu of the income tax. It is levied on the taxpayer’s total capital resources and income that are not invested in real estate.

Zakat is levied at a flat rate of 2.5% on the estimated net profit of 15% the gross income.

Corporate Route

Non-Saudi and Non-GCC Companies

Alien companies, or non-Saudi and non-GCC national companies, are taxed at a flat rate of 20% on their income.

GCC Companies

Income of GCC-enterprises is subject to a withholding of zakat at 2.5% on the estimated net profit of 15% the gross income.

Capital Gains Tax

No tax is levied on capital gains earned by individuals from selling property.

Corporate Route

Non-Saudi and Non-GCC Companies

Alien companies, or non-Saudi and non-GCC companies, are taxed at a flat rate of 20% on their income. The taxable gain is the market value less acquisition costs. However, a minimum taxable gain of 15% of the actual costs is taxable.

GCC Companies

Income of GCC-enterprises is subject to a withholding of zakat at 2.5% on the estimated net profit of 15% the gross income.

Saudi Arabia - more data and information

• Guide to buying houses and registering property sales in Saudi Arabia

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