Saudi Arabia tax guide 2026

Saudi Arabia levies no tax on salaries, wages or personal investment income — for Saudis and expatriates alike. Tax enters only through business: non-Saudi individuals running a business pay 20% under company rules, while Saudi and Gulf nationals pay the religious Zakat levy of 2.5% instead. There are no inheritance, gift or wealth taxes; the costs that do exist are transaction-side — a 5% real estate transaction tax, expat residency levies, and social insurance for Saudi employees.

Rate range: 0% on personal income; 20% on business profits (Zakat 2.5% for Saudi/Gulf nationals)
Key allowance: Not needed — salaries and personal investments sit outside the tax system
Tax year: Calendar year (relevant only to business activity)
Filing deadline: No personal tax return exists

Taxes covered

Special regimes

0% on employment and investments
Salaries, bonuses, dividends, interest and personal capital gains carry no Saudi tax and require no filing — for any nationality.
Business: 20% or Zakat
Non-Saudi individuals in business pay 20% income tax under company rules; Saudi and Gulf nationals pay Zakat at 2.5% of the Zakat base instead.
No estate taxes
No inheritance tax, no gift tax, no wealth tax — 0% on anything passing at death or by gift.
Property has its own taxes
Transfers carry a 5% real estate transaction tax (first Saudi-national home exempt to SAR 1 million), and undeveloped urban land faces an annual 2.5-10% white-land levy.

Recent changes

2025-08Executive regulations for the expanded white land tax arrived — annual fees of 2.5% to 10% of land value by urban-priority tier, now also reaching long-vacant ready-to-use buildings.
2024-07The social insurance reform started phasing new joiners' pension contributions up by 0.5 points a year; existing employees stay at the old rates.
2022-02Real estate transaction tax regulations widened family-transfer exceptions to relatives up to the third degree.

Taxes covered

Special regimes

Recent changes

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