Living in Saudi Arabia as an Expat: Premium Residency, Vision 2030 and Financial Planning

Saudi Arabia is undergoing the most dramatic economic and social transformation of any country in the world. Vision 2030 — the Kingdom's ambitious diversification plan spearheaded by Crown Prince Mohammed bin Salman — is reshaping everything from entertainment and tourism to financial services and international investment. For internationally mobile HNW individuals, this transformation is creating genuine opportunities: a tax-free income environment, a new Premium Residency programme, improving lifestyle infrastructure, and a property market that is beginning to open to foreign participation.

The Saudi Premium Residency Programme

Launched in 2019, the Saudi Premium Residency (SPR) — often referred to as the "Green Card" — is Saudi Arabia's most significant immigration innovation in decades. It provides long-term residency rights without employer sponsorship, liberating qualified residents from the traditional kafala system.

Two variants:

Permanent Premium Residency (PPR):

• One-time fee: SAR 800,000 (~£170,000 as of 2026)
• Provides indefinite residency for holder and immediate family
• Allows business ownership (including 100% foreign ownership in eligible sectors)
• Allows property ownership in designated areas
• Provides multiple re-entry rights
• No annual renewal requirement

Annual Premium Residency (APR):

• Annual fee: SAR 100,000 (~£21,000) per year
• Renewable annually
• Same rights as PPR while held
• More accessible for those not ready for the permanent commitment

PPR eligibility: Both variants require the applicant to be a lawful resident of Saudi Arabia (existing iqama holder or entering via a qualifying business investment), have no criminal record, and meet health requirements. The PPR has attracted international executives, entrepreneurs, and investors.

Category-based options (since 2024): Alongside the two fee-based variants above, the programme was expanded in 2024 with additional category-based premium residency routes — including Special Talent, Gifted, Investor, Entrepreneur and Real Estate Owner tracks, each with its own income, capital or asset thresholds. The route that best fits your circumstances should be confirmed with a qualified Saudi adviser, as the categories and thresholds continue to evolve.

Traditional route (iqama): The majority of expats in Saudi Arabia still work on employer-sponsored residence permits (iqamas) renewed annually or bi-annually. The kafala reforms since 2021 have improved mobility between employers in many sectors.

Tax-Free Income: The Saudi Advantage

Saudi Arabia offers the same core tax advantages as the rest of the GCC:

• No personal income tax on salaries, bonuses, investments, rental income or dividends
• No capital gains tax for individuals (with some sector-specific exceptions)
• No wealth tax or inheritance tax

Important exceptions:

• Zakat: Saudi nationals (and Saudi-owned businesses) pay Zakat (Islamic charitable levy) at approximately 2.5% of net assets annually. Foreign nationals are not subject to Zakat.
• VAT: Saudi Arabia raised VAT from 5% to 15% in July 2020 — the highest in the GCC. This applies to most goods and services.
• Corporate income tax: Applies to the foreign shareholder's portion of profits in Saudi companies at 20%. Saudi shareholders' share is subject to Zakat at 2.5%.

UK tax planning: UK nationals must break UK tax residency under the Statutory Residence Test before relying on Saudi Arabia's zero personal tax. Saudi Arabia has a double taxation agreement with the UK (signed 2007) which helps prevent double taxation but does not exempt income from UK tax if you remain UK-resident.

The Vision 2030 Economic Context

To understand Saudi Arabia's current environment for expats, understanding Vision 2030 is essential.

Key pillars relevant to expats:

• NEOM — a planned city-state on the Gulf of Aqaba, including the linear city "The Line." A USD 500 billion+ megaproject, NEOM is expected to house millions of people and will create hundreds of thousands of jobs for international professionals.
• Red Sea Project — a luxury tourism and real estate development on 50 islands and 100km of coastline. Opening in phases from 2024.
• Qiddiya — entertainment city near Riyadh, expected to include theme parks, sports facilities and cultural venues.
• Diriyah — heritage restoration and cultural tourism project outside Riyadh.
• Saudi Entertainment — the removal of the ban on cinemas (2018), mixed-gender concerts and events, entertainment complexes (Riyadh Season), and relaxed dress codes for foreigners has fundamentally changed daily life for expats.

These projects are creating an unprecedented demand for international professionals in construction, technology, hospitality, finance and creative industries.

Banking in Saudi Arabia

Saudi Arabia's banking sector is well-capitalised and sophisticated. Major banks include:

• Al Rajhi Bank — the world's largest Islamic bank by assets
• Saudi National Bank (SNB) — formed from the merger of NCB and Samba in 2021
• Riyad Bank, Saudi British Bank (SABB) — SABB is the HSBC-affiliated local bank
• Arab National Bank, Banque Saudi Fransi

Account opening: Requires a valid iqama (residence permit). Account opening has become faster via digital channels; most banks offer mobile-first onboarding for employed expats.

Currency: The Saudi Riyal (SAR) is pegged to the USD at SAR 3.75 = USD 1.00, a peg in place since 2003. This provides stability for USD-denominated transactions but means GBP/EUR investors carry dollar exchange risk.

International banking: For significant wealth management, maintain accounts in Dubai (ADGM or DIFC private banks), Singapore or the Isle of Man. Saudi Arabia does not have an equivalent offshore financial centre (though NEOM's plans include a free zone element).

Property Ownership for Foreign Nationals

Property ownership by foreigners in Saudi Arabia has been historically very restricted. Vision 2030 is beginning to change this:

Current rules for foreigners (2026):

• Foreign nationals with valid residency can own one residential property for personal use in Saudi Arabia's major cities, subject to Ministry of Interior approval.
• Ownership in certain tourist and investment zones is opening up — Red Sea Project and NEOM are specifically designated to allow foreign freehold ownership.
• The SPR holder has the right to own property in designated areas without restriction.

Practical reality: The residential property market for foreigners outside SPR and specific development zones remains limited. Most expats rent. The rental market in Riyadh and Jeddah is active and well-supplied for all budget levels.

NEOM property investment: NEOM's real estate development arm has begun offering international sales. This represents a genuinely new frontier for foreign property investment in Saudi Arabia — high risk (it is a hugely ambitious project still in early stages) but potentially significant upside for early investors.

Typical rents (Riyadh, 2026): Quality 3-bedroom apartment in Riyadh's Al Olaya or Diplomatic Quarter: SAR 80,000–150,000 per year (£17,000–£32,000). Villas in gated compound communities (Al Hamra, Seder Village, Cordoba) which provide Western-style amenity environments: SAR 150,000–350,000 per year (£32,000–£74,000).

Life in Saudi Arabia as an Expat in 2026

The Kingdom has changed dramatically since 2016. Key practical shifts:

• Women can now drive, work without male guardian permission in most contexts, and attend mixed-gender public events
• Entertainment — cinemas, concerts, sporting events (including major international boxing, football and Formula One) are all now present
• Dress code — foreigners are required to dress modestly but the black abaya requirement for non-Muslim women has been lifted
• Alcohol — remains illegal throughout Saudi Arabia for all residents; this remains a significant lifestyle constraint for many Western expats
• Social life — has improved enormously; restaurants, cafes, and social venues have proliferated; Riyadh in particular has undergone a social transformation

International schools: Riyadh and Jeddah have extensive international school offerings — British, American, IB, French and German schools operate. Quality is generally high. Fees range from SAR 40,000–120,000 per year.

Healthcare: SANG Hospitals, Saudi Aramco Medical Services (for Aramco employees), and private hospitals including Dr. Sulaiman Al Habib and Kingdom Hospital provide generally good care. International PMI is strongly recommended.

Key Risks and Compliance Caveats

• Saudi Arabia's political environment is authoritarian by Western democratic standards. Freedom of expression, press, and certain personal freedoms are substantially curtailed.
• The pace of Vision 2030 reform creates some regulatory uncertainty — rules that apply today may change. Stay current with professional legal advice.
• UK nationals must break UK tax residency cleanly. Do not assume that working in a zero-tax country automatically resolves UK obligations.
• VAT at 15% is the highest in the Gulf and increases the effective cost of living.
• Investments in megaprojects like NEOM and Red Sea carry substantial development risk. Off-plan investment in any emerging market requires thorough due diligence.
• Investments can fall as well as rise.

How Global Investments Can Help

Saudi Arabia is a market our team is watching closely given Vision 2030's scale. We assist Saudi-based expats with:

• UK tax and residency planning — pre-departure SRT analysis and ongoing UK compliance
• Offshore wealth management — portfolio management through Isle of Man, Jersey or Singapore platforms suitable for zero-tax Gulf clients
• Property investment — UAE property (Dubai, Abu Dhabi) as a complementary market to Saudi Arabia
• Succession planning — estate planning that accounts for assets in multiple jurisdictions
• Business investment advice — introductions to advisers who can assist with SPR applications and Saudi company formation

Contact us to discuss your financial planning as a Saudi Arabia-based expat.

All information correct to the best of our knowledge as of June 2026. Rules in Saudi Arabia are evolving rapidly under Vision 2030; always seek current professional advice. This guide does not constitute professional advice.