Saudi Arabia

Tax advantages

• No personal income tax, capital gains tax, or wealth tax for individuals.
• No inheritance or estate tax; assets can be passed to heirs without tax liability.
• Corporate income tax at 15% applies only to foreign-owned entities; Saudi-owned businesses pay zakat (2.5% on net worth).
• VAT at 5% is low compared to global standards, with exemptions for basic food items and healthcare.
• Extensive network of double taxation treaties with over 50 countries, including the UK, France, and China.

Tax disadvantages

• Zakat (2.5% on net worth) applies to Saudi nationals and resident GCC citizens, which can be a significant annual cost for high-net-worth individuals.
• Withholding tax on dividends and interest paid to non-residents is 5-20%, depending on the treaty.
• No formal bank secrecy; financial information is shared with ZATCA and SAMA for tax and regulatory purposes.

Residency advantages

• The Premium Residency program offers a five-year renewable visa with no sponsor requirement, allowing full business ownership and property rights.
• No minimum stay requirement to maintain residency; flexibility for global travelers.
• Access to a growing network of tax treaties and a stable, oil-backed economy.
• Path to citizenship is extremely limited, but long-term residency is renewable indefinitely.

Residency disadvantages

• No formal citizenship-by-investment program; citizenship is rarely granted to foreigners.
• Residency is tied to employment or investment; loss of job or business can affect status.
• Legal system based on Sharia law may be unfamiliar to Western investors; foreign judgments are not automatically recognized.
• Limited personal freedoms, including restrictions on alcohol, dress code, and gender interactions.

Living quality

Living quality in Saudi Arabia is high for those who can afford luxury compounds and private services, with excellent healthcare, international schools, and modern infrastructure. Safety is a strong point, with low crime rates and strict law enforcement. However, the extreme heat (often exceeding 45°C in summer) and conservative social norms can be challenging. The government is actively expanding entertainment options, including cinemas, concerts, and sporting events, but cultural restrictions remain significant.

Best for

• Saudi Arabia is best suited for high-net-worth individuals with strong ties to the Gulf region, particularly those involved in energy, petrochemicals, or infrastructure. It appeals to Muslim families seeking a Sharia-compliant environment and those who value tax-free personal income and a low-tax corporate regime. The Premium Residency is ideal for investors and entrepreneurs who want a base in a rapidly diversifying economy without the need for citizenship.