Moving from the US to Saudi Arabia
Saudi Arabia removes individual income tax from employment income for the local employee, but it does not remove US tax for a citizen. The corridor is strongest for compensation and business structuring, not as a federal tax exit.
The local employment result
Saudi Arabia has no individual income tax on employment income. Non-Saudis pay no GOSI employee contribution; the employer pays a 2% occupational-hazard charge. Premium Residency is SAR 800,000 one-time or SAR 100,000 per year.
Business capital is a different category: Zakat at 2.5% applies to the Saudi/GCC-owned share and 20% corporate tax to the foreign-owned share. Individual capital gains and dividends were not verified in this research pass.
Why the US still matters
US citizens and green-card holders remain taxable on worldwide income. A Saudi salary with no Saudi personal income tax can still be reportable and taxable in the US, subject to the ordinary US rules and any available relief.
The Substantial Presence Test does not replace citizenship-based taxation. Renunciation is the separate path, and covered expatriates face IRC §877A.
Do not use a proposed rule as current law
A 90-day Saudi residency test is in draft consultation and was not enacted as of September 2026. Its status is unclear, so the page should not present it as a current safe harbour.
Before you move
- Zero Saudi employment tax does not mean zero US tax for a US citizen.
- Individual Saudi capital-gains and dividend treatment was not verified and is not filled in here.
- The proposed 90-day residency rule is not enacted.
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Tax rates are only the first screen. Residency, ownership, treaty position and succession can change the outcome.
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