--- title: "Saudi Arabia tax for new residents 2026: Source/zakat scope" url: https://settleanywhere.com/countries/saudi-arabia/tax/ lang: en updated: 2026-10-11 --- # Saudi Arabia tax Tax residence: At least 30 days in Zakat year. Foreign-source income of residents: Source/zakat scope. No special regime for new residents in our records. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - At least 30 days in Zakat year · Natural person with a permanent residence in the Kingdom, physically present for at least 30 days, consecutive or aggregated. - At least 183 days in Zakat year · Natural person without a permanent residence in the Kingdom, physically present for at least 183 days, consecutive or aggregated. - Residence is judged per Zakat year. Withholding rates: management fees 20%, royalties 15%, dividends 5%, rent 5%, loan charges 5%, insurance 5%, technical and consulting services 5%, air tickets or freight 5%, international telecoms 5%, land transport 15%, other payments 15%. - A natural person is resident with a permanent residence and 30 days in the Zakat year, or 183 days without a permanent residence. ## Standard rules and foreign-source income Standard rules ### Income Tax Law scope, individual residence test and withholding rates **Details** - On: Non-Saudi partners' share of resident company income Saudi income tax applies to non-Saudi shares in resident capital companies and to non-residents with a permanent establishment or Saudi-source income. Payments to non-residents carry withholding of 5% to 20% by income type. A natural person is resident with a permanent dwelling and 30 days, or 183 days, in the Zakat year. (sources 1, 2, 3) #### Taxed on Non-Saudi partners' share of resident company income; non-residents' Saudi-source income; payments to non-residents (withholding). #### Who it applies to - Natural person resident test: permanent residence in the Kingdom plus at least 30 days in the Zakat year, or, without a permanent residence, at least 183 days in the Zakat year (Zakat Collection Implementing Regulations). #### Exclusions - Opening bank accounts and trading in listed Saudi shares by a resident natural person are not taxable activity. #### Days in the country - At least 30 days in Zakat year · Natural person with a permanent residence in the Kingdom, physically present for at least 30 days, consecutive or aggregated. - At least 183 days in Zakat year · Natural person without a permanent residence in the Kingdom, physically present for at least 183 days, consecutive or aggregated. #### Tax residence Residence is judged per Zakat year. Withholding rates: management fees 20%, royalties 15%, dividends 5%, rent 5%, loan charges 5%, insurance 5%, technical and consulting services 5%, air tickets or freight 5%, international telecoms 5%, land transport 15%, other payments 15%. #### Visas Premium Residency does not by itself determine tax status. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) Standard rules ### Saudi Arabia: Income Tax Law scope for individuals; Zakat for Saudi/GCC nationals Source/zakat scope Foreign-source income: Source/zakat scope **Details** Income tax applies to non-Saudi partners' shares in resident capital companies and to non-residents with a permanent establishment or Saudi-source income; resident Saudi and GCC nationals carrying on an activity are subject to Zakat instead. (sources 1, 4, 5, 3) #### Taxed on Income tax: non-Saudi partners' shares of resident capital-company profit and income of non-residents from Saudi sources (by withholding tax or permanent establishment); taxable activity covers commercial, industrial, agricultural, service, banking, insurance, investment, leasing and professional activity. #### Who it applies to - Resident Saudi natural persons and GCC nationals treated alike who engage in an activity are subject to Zakat collection rather than income tax (ZATCA Zakat FAQ). #### Exclusions - Opening bank accounts and trading shares of companies listed on the Saudi Capital Market by a resident natural person are not taxable activity under the Law (ZATCA Income Tax page). - Withholding tax on payments to non-residents ranges from 5% on dividends, rent, loan charges and insurance to 15% on royalties and 20% on management fees (ZATCA WHT guideline). #### Tax residence A natural person is resident with a permanent residence and 30 days in the Zakat year, or 183 days without a permanent residence. Checked against official sources on 11 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## Questions people ask ### When do you become a tax resident in Saudi Arabia? At least 30 days in Zakat year (Natural person with a permanent residence in the Kingdom, physically present for at least 30 days, consecutive or aggregated); At least 183 days in Zakat year (Natural person without a permanent residence in the Kingdom, physically present for at least 183 days, consecutive or aggregated). Residence is judged per Zakat year. ### Is foreign-source income taxed in Saudi Arabia? Source/zakat scope. Income tax applies to non-Saudi partners' shares in resident capital companies and to non-residents with a permanent establishment or Saudi-source income; resident Saudi and GCC nationals carrying on an activity are subject to Zakat instead. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (5)** ## Official sources 1. [Income Tax (scope of the Income Tax Law)](https://zatca.gov.sa/en/Pages/IncomeTax.aspx) · Zakat, Tax and Customs Authority · checked 2026-10-11 2. [General Guideline for Withholding Tax under the Income Tax Law and its Implementing Regulations](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/General-Guideline-for-Withholding-Tax-In-accordance-with-the-provisions-of-the-Income-Tax-Law-and-its-Implementing-Regulations.pdf) · Zakat, Tax and Customs Authority (ZATCA) · checked 2026-10-11 3. [Implementing Regulations for Zakat Collection 1445H (2024)](https://zatca.gov.sa/en/RulesRegulations/Documents/ZAKAT%20COLLECTION.pdf) · Zakat, Tax and Customs Authority (ZATCA) · checked 2026-10-11 4. [General Guideline for Withholding Tax under the Income Tax Law and its Implementing Regulations](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/General-Guideline-for-Withholding-Tax-In-accordance-with-the-provisions-of-the-Income-Tax-Law-and-its-Implementing-Regulations.pdf) · Zakat, Tax and Customs Authority · checked 2026-10-10 5. [Zakat FAQs guideline (persons subject to Zakat collection)](https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/FAQ's.pdf) · Zakat, Tax and Customs Authority · checked 2026-10-11