Living in Saudi Arabia: two residency thresholds, Zakat and income tax

In Saudi Arabia, the Zakat collection regulations establish two thresholds for an individual to be considered a resident: permanent residence in the Kingdom and at least 30 days of presence during the Zakat year, or, failing permanent residence, at least 183 days. The country distinguishes between two tax regimes: Zakat, calculated at a rate of 2.5% for those subject to it, and income tax, which applies in particular to shares held by non-Saudi partners and non-residents with Saudi-sourced income. This page outlines the established rules and indicates where to find further information.

Resident: 30 days with permanent residency, 183 days without

Article 4 of the Zakat collection regulations (2024 edition, year 1445 AH) stipulates that a natural person is considered a resident for the Zakat year in one of these two cases:

1. She has a permanent residence in the Kingdom and is present there for at least 30 days in the Zakat year, consecutive or cumulative; ;
2. She does not have a permanent residence in the Kingdom and is present there for at least 183 days in the Zakat year.

Part of a day counts as a full day. A person in transit between two destinations outside the Kingdom may not be considered present. The Withholding Tax Guide published by the tax authority (ZATCA, second version, May 2026) and the Individual Tax Residence Certificate Service page use the same thresholds of 30 and 183 days. This service page indicates that the certificate allows for exemption from income tax, according to Saudi law or a double taxation agreement.

Zakat and income tax: two systems

The Zakat collection regulations (articles 2, 3, 6 and 15) state that:

• the regulation means by "Saudi" a person of Saudi nationality as well as nationals of other States of the Gulf Cooperation Council who benefit from similar treatment; ;
• A Saudi resident individual who carries out a licensed activity in the Kingdom is subject to it; ;
• Individuals subject to income tax law, and shares in legal entities subject to this tax, are excluded; ;
• The rate is 2.5 % of the Zakat base for the Hijri year.

The ZATCA page dedicated to income tax (updated 14/08/2025) specifies that the law applies to shares held by non-Saudi partners, whether individuals or legal entities, in resident capital companies, as well as to non-residents who conduct business through a permanent establishment or who receive income from Saudi sources. It excludes from taxable activity the trading of shares in companies listed on the Saudi capital market by a resident individual, and the opening of bank accounts.

Withholding tax on payments to non-residents

The ZATCA guide (second version, May 2026) provides the following domestic withholding tax rates. The Arabic version prevails in case of any discrepancy with the English version.

A circular dated January 2025 concerning the application of withholding tax in the presence of a tax treaty reiterates, for domestic law, the rates of 5 % on dividends, 5 % on loan income, and 15 % on royalties. It refers to the rate stipulated by each treaty, along with a certificate of tax residence from the foreign state. The Franco-Saudi treaty does not specify a rate for dividends: see our page on the treaty.

An attendance record: a numerical example (fictitious profile)

Situation. Karim, a fictitious profile, does not have permanent residency in Saudi Arabia. He makes four trips there in the same Zakat year: 70, 55, 40 and 20 days.

Issue. He wants to know if the presence threshold of article 4 has been reached.

Strategy. He adds up the days, knowing that part of a day counts as a whole day.

Result. The total is 185 days: the 183-day threshold is reached with a 2-day difference. Without the last stay, the total would be 165 days, 18 days short of the threshold. With permanent residence in the Kingdom, the threshold would be 30 days. This calculation does not indicate the tax due; it only applies the presence criterion.

Residence permit and social security

The travel advice sheet on diplomatie.gouv.fr indicates that foreigners residing in Saudi Arabia are dependent on a sponsor and must hold a residence permit (iqama). The long-stay visa must be obtained from outside the country. This sheet contains no tax or social security information. The Saudi social security system is not described here: the CLEISS website should be consulted to determine if secondment or affiliation is possible.

This point is not detailed here

The taxation of salaries and earned income of a resident individual, the basis for Zakat for an individual, wealth tax, and the taxation of local savings are not detailed here: these fall under the Income Tax Law and its implementing regulations, which should be verified with the ZATCA (Zakat Tax Administration of the Central African Republic). The convention of February 18, 1982, with France, amended by addenda in 1991 and 2011, covers income tax, wealth tax, and inheritance tax, according to the administrative list of April 29, 2026. Matters pertaining to France, including departure from the country, accounts to be declared, and foreign income, are addressed on our dedicated pages.

What changes depending on your situation

• Your potential permanent residence in the Kingdom and the number of days of presence per year.
• Your status: employee of a Saudi employer, seconded employee, manager, partner of a local company.
• The direction of the flows: dividends, rents, interest or royalties paid to a non-resident.
• Your French tax residence on the date of departure.

No results are promised: the rule depends on your case.