• Investment Research
• Property Search

Saudi Arabia: Taxes and Costs

Country Rating  »

Home ›  Middle East ›  Saudi Arabia ›  Taxes and Costs

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
Click here to see a worked example
Source:			Disclaimer

INDIVIDUAL TAXATION

Individuals are only taxed on their business income.

INCOME TAX

Non-Saudi and Non-GCC National

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

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.

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

CAPITAL GAINS
No tax is levied on capital gains realized by individuals from selling property.

PROPERTY TAX

There is no real estate tax in Saudi Arabia, but zakat may be payable on real estate if held for speculative purposes.

CORPORATE TAXATION

INCOME TAX

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 and capital gains. Income-generating expenses are deductible when computing for the taxable 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.

Saudi Arabia - more data and information

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

Your Comments

Post a comment