Dividend tax in Saudi Arabia 2026

Individuals not carrying on a business pay nothing on dividends and interest — 0%, with no filing.

Cross-border, the company side withholds: non-resident holders of Saudi shares and debt see a final 5% come off dividends and interest.

At a glance

Rate	Base	Applies to
0%	—	Dividends and interest of individuals not carrying on a business
5%	Gross	Dividends, interest and loan income paid to non-resident individuals — final withholding
20% / 2.5%	Business income	Investment income inside a business — income tax or Zakat by nationality

Residence is irrelevant for personal investment income — nothing is taxed and nothing is filed.

The 5% withholding on outbound dividends and interest is final; treaty rates can reduce it.

The corporate participation exemption for dividends does not extend to individuals — irrelevant in practice, since personal dividends are untaxed anyway.
Foreign payers may withhold their own tax; Saudi Arabia's growing treaty network supports relief claims with residence certificates.
There is no personal wealth reporting attached to holding investments.

Are dividends taxed in Saudi Arabia?

Not for individuals outside business — 0%; dividends leaving the country to non-resident holders carry a final 5% withholding.

Is bank interest taxed in Saudi Arabia?

No — 0% for individuals not carrying on a business.

Figures: tax year 2026, compiled from public sources. Not tax advice.