Relocating to Saudi Arabia: Tax-Free Income, Premium Visas, and Strategic Opportunities for Global Executives

Why Saudi Arabia Is Back on the Global Relocation Radar

Saudi Arabia is positioning itself as one of the most consequential relocation hubs for senior executives, global families, and capital over the coming decade. The combination of zero personal income tax on employment income, large-scale public and private investment, and accelerated legal reforms has created a structurally different value proposition from traditional expat centres in Europe or North America.​

At the same time, stringent visa rules, sponsorship-based residency, and complex cross-border tax considerations mean relocation cannot be handled as a routine HR move. For global decision makers, Saudi Arabia requires a deliberate strategy that aligns immigration, tax, wealth structuring, talent, and family planning over a multi-year horizon.​

Core Work Visa and Iqama Strategy for Executives

To live and work legally in Saudi Arabia, foreign nationals require both a work visa and a residency permit (Iqama), obtained through a local sponsor—usually the Saudi employer or host organisation. The sponsor initiates the process, secures approvals, and remains legally responsible for the expatriate’s status for as long as the sponsorship is active.​

Saudi Arabia retains a sponsorship-based system, but the former Kafala-style constraints have been eased under the Labour Reform Initiative (LRI). Most private-sector expats can now initiate job transfers and apply for exit/re-entry or final-exit visas directly via digital platforms such as Absher and Qiwa, provided contractual conditions and notice periods are respected.​

Compliance, Background Checks, and Medical Requirements

Executives must factor in pre-move due diligence and timeframes. Work visa approval is contingent on both background checks and a medical examination, including screening for infectious diseases such as HIV/AIDS, hepatitis, and active tuberculosis; individuals with disqualifying conditions are typically refused residence permits.​

All documents required for employment and residency—degrees, professional licenses, marriage certificates, and children’s birth certificates—must be authenticated before arrival. Failure to align visa type, role, and actual work performed can lead to severe penalties: fines, deportation, imprisonment, and bans on re-entry for working on a visitor or business visa.​

Sponsor Rights, Responsibilities, and Exit Risk

Under the Iqama framework, the sponsoring employer holds legal responsibility for the expatriate’s lawful presence and compliance. They can be held accountable for employing individuals on visitor visas, harbouring overstayers, or failing to report absconding workers.​

The LRI has reduced employer control in practice, but it has not removed the need for regulatory precision. Eligible employees can now submit employer-transfer requests via Qiwa and apply for exit/re-entry and final-exit visas through Absher, except where there is an active labour or legal dispute. Before leaving the Kingdom, expats should expect to:​

• Clear all outstanding debts, fines, and traffic penalties.
• Cancel phones, bank accounts, vehicles, and other registrations in their name.
• Ensure that exit documentation aligns with contract and immigration status.

Family Sponsorship and Dual-Career Households

Once a work visa and Iqama are secured, executives can typically sponsor immediate family—spouse and children—for dependent residence visas, processed with the support of the employer. These dependent visas permit residence but not employment.​

Spouses and adult dependents who wish to work must secure their own employer, contract, and sponsorship, and convert their status into an independent work visa. Even in sectors such as healthcare or education, work is not permitted on a dependent visa without formal authorisation; ad hoc or informal arrangements remain non-compliant and can trigger sanctions.​

Premium Residency: The “Strategic Option” for HNWIs and Investors

Saudi Arabia’s Premium Residency programme operates as a strategic alternative to classic work sponsorship, particularly relevant for investors, entrepreneurs, senior professionals, and global families seeking more autonomy. The scheme now includes multiple tailored products:​

• Special Talent Residency – for senior healthcare, research, scientific, and executive leadership profiles.
• Gifted Residency – for high-achieving individuals in sports and culture, typically linked to recognised awards or nominations and financial solvency.
• Investor Residency – for individuals deploying significant capital into Saudi businesses and holding qualifying commercial registrations.
• Entrepreneur Residency – for founders and start-up leaders with licensed ventures and recognised investment backing.
• Real Estate Owner Residency – for those owning qualifying mortgage-free property above a specified value threshold.
• Limited-Duration Premium Residency – a renewable, fee-based track for defined-term projects.
• Unlimited-Duration Premium Residency – a “lifetime-style” route for those meeting a one-off payment threshold.

Tax Environment: Attractive Locally, Complex Globally

From a local perspective, Saudi Arabia remains one of the most favourable major economies for salaried professionals and many executives. The Kingdom does not levy personal income tax on wages and salaries, meaning employment income is not taxed at the individual level. There is also no general personal-level wealth tax or inheritance tax regime of the sort seen in several Western jurisdictions.​

However, taxation is not entirely absent. Saudi Arabia imposes a 15% value-added tax (VAT) on most goods and services, which raises the cost of consumption, especially on imported goods and discretionary spending. In addition, income tax at 20% can apply to Saudi-source business and professional income, particularly for foreign-owned businesses, non-residents with a permanent establishment, and certain service providers and investors, alongside potential withholding tax on specified cross-border payments.​

Retirement, EOSB, and Long-Term Capital Planning

Saudi Arabia does not operate a state pension system for foreign employees. Instead, expatriates are entitled to a statutory end-of-service benefit (EOSB)—a lump sum payable when the employment relationship ends, governed by Saudi labour law.​

The EOSB formula differentiates between employer-initiated terminations without misconduct and employee resignations. For example, where termination occurs without employee fault, EOSB typically accrues as a fraction of monthly salary per year of service, rising to the equivalent of a full month’s salary per year after longer tenures. Resignations attract more limited entitlements, with thresholds around one, five, and ten years of service determining what share of the calculated EOSB is paid. While meaningful, EOSB is not a substitute for a dedicated retirement strategy, so executives usually rely on home-country pensions, offshore structures, or employer-sponsored savings plans.​

Cost of Living: Tax-Free Income, Not Cost-Free Life

For most Western executives, Saudi Arabia offers a lower overall cost of living than major US cities, especially when combined with tax-free employment income. However, the picture is nuanced and varies significantly across Riyadh, Jeddah, Dammam, and emerging NEOM-linked zones.​

Indicative monthly costs include: rent for a one-bedroom apartment ranging roughly from around USD 800 to 1,600, utilities in the region of USD 200–300, and internet from approximately USD100 per month. Everyday items such as a loaf of bread, a gallon of milk, public transport passes, and fuel remain relatively affordable by Western standards, but international-standard housing compounds, imported groceries, and premium schooling can shift the cost base closer to major global hubs.​

Healthcare: Insurance-Led Access for Expats

Saudi Arabia has invested heavily in hospital infrastructure, private clinics, and digital health, with many leading facilities offering modern equipment and English-speaking staff, particularly in major cities. However, public healthcare is primarily reserved for citizens, so expatriates largely access care through private providers.​

Health insurance is compulsory for expatriate employees and their dependents under the Cooperative Health Insurance Law, and employers must provide at least a basic policy. Coverage scope varies; some plans offer only limited dental, maternity, chronic condition, or international evacuation coverage, pushing many executives to purchase top-up or international medical insurance. For senior roles, negotiating comprehensive family coverage—potentially including international treatment options—has become a standard component of competitive packages.​

Education and International Schools for Expat Families

Most US and UK expatriate families prefer international schools that deliver familiar curricula and English-language instruction while accommodating global mobility. In Riyadh, Jeddah, and Dammam, there is a robust ecosystem of schools offering British (IGCSE/A-Level), American (AP), and International Baccalaureate (IB) programmes.​

Local public schools, while technically accessible, are generally suited to long-term residents who wish to fully immerse in Arabic-language education and a system with gender segregation and a strong focus on Islamic studies. International schools, by contrast, often have waiting lists, admission assessments, and competitive tuition fees—making early applications and negotiation of education allowances central to an executive’s employment package.​

Strategic Checklist for CEOs, Investors, and HNW Families

For senior decision makers, relocating to Saudi Arabia is less about simple lifestyle arbitrage and more about orchestrating a multi-dimensional strategy. Key strategic moves include:

• Aligning visa route with role and capital: choose between standard employment sponsorship, premium residency, investor/entrepreneur tracks, or real estate-based options.
• Integrating global tax planning: coordinate Saudi relocation with US, UK, or other home-country rules to avoid double taxation or inefficient structures.
• Negotiating total reward: treat housing, schooling, healthcare, and travel as integral components of compensation, not mere add-ons.
• Planning exit and succession: ensure that EOSB, equity, carried interest, and business exits are structured tax-efficiently across jurisdictions.
• Stress-testing lifestyle assumptions: model different cost-of-living scenarios based on compound living versus local neighbourhoods and international versus local schooling.

Handled well, Saudi Arabia can deliver a compelling combination of after-tax income, scale opportunities, and strategic access to a fast-evolving regional hub. Handled casually, it can introduce legal, tax, and reputational risk. For board-level leaders and wealth owners, the difference lies in treating relocation as a core component of long-term capital and talent strategy, rather than a tactical posting.