Moving to Saudi Arabia From the UK: Key Considerations for Expats

Still, the decision to move to KSA requires careful consideration. The country operates under specific residency and immigration rules, and long-term stay options depend heavily on sponsorship or eligibility under the Premium Residency programme.

This article outlines crucial factors to consider when moving to Saudi Arabia from the UK, including visas, residency options, tax liability, cost of living, and local laws. Additionally, it highlights the latest UK tax reforms relevant to expatriates and explains the importance of obtaining regulated cross-border financial advice before relocating.

Why Are UK Nationals Moving to Saudi Arabia?

Saudi Arabia has become a popular relocation destination among UK expats for several reasons, including the following:

Do UK Nationals Need a Visa To Relocate to Saudi Arabia?

UK nationals are required to obtain a visa when moving to Saudi Arabia. While the KSA offers various visas, most of them are designed for short-term visits, whether for personal or business purposes.

The primary method for securing a long-term stay in Saudi Arabia is obtaining an employment (work) visa, which is granted to individuals who secure employment in the Kingdom and are sponsored by a Saudi employer under the labour and residency system.

After obtaining an employment contract in the KSA, your visa application requires providing:

• A passport valid for at least six months with two or more successive empty visa pages
• An original letter from the Saudi company sponsoring your visa
• A copy of the employment contract signed by you and the employer
• A medical report issued by a licensed physician (the crucial aspect is a clean bill of health for infectious diseases such as AIDS or hepatitis)

Once you receive a visa number, your sponsor will assist you in arranging an Iqama, a residence permit enabling you to live and work in Saudi Arabia.

An employment visa remains valid as long as you are employed in the KSA. If you change jobs, your residency and sponsorship must be transferred to your new employer through the official transfer-of-sponsorship process.

What Are the Visa Requirements for Moving to Saudi Arabia With Family?

Your immediate family—such as your spouse and children—may legally reside in Saudi Arabia by obtaining a Dependent Residency Visa (family iqama).

This is different from the 90-day family visit visa, which is short term and not intended for relocation.

To sponsor dependants, you must hold a valid residence permit and meet income and accommodation requirements, while your family must provide:

• A passport valid for at least six months.
• Proof of their relationship with you.
• A visa referral note from the Saudi Ministry of Foreign Affairs.
• Attested marriage or birth certificates, depending on the family member.

The visa applies to both adult family members and children. However, minor children who are not travelling with both parents require additional documentation, such as a notarised permission letter signed by the absent parent.

Once the family visa expires, you can typically renew it through the Absher platform or Jawazat office.

Note that the dependent residency visa does not permit your family members to work in Saudi Arabia, as foreigners are only allowed to work in the KSA on an employment visa with their own employer sponsorship.

Can You Move to Saudi Arabia Permanently as a UK National?

Yes, UK nationals can relocate to Saudi Arabia on a long-term or permanent basis, but they must obtain a specific type of visa or residency status to do so.

While an employment visa enables a long-term stay in the KSA, it does not grant permanent residency or citizenship. To allow foreigners to reside permanently in Saudi Arabia, the KSA government launched Saudi Arabia’s “Golden Visa”, officially called the Premium Residency Visa.

The purpose of the premium residency visa, also known as the Saudi Green Card, is to attract international investors, entrepreneurs, and high-value employees to Saudi Arabia without the need to seek employer sponsorship.

The standard premium residency products require an application fee of 4,000 SAR (approximately £800), but the residency itself generally requires a qualifying investment, income, or professional criteria depending on the category.

Upon securing the visa, you will receive benefits such as:

• The ability to own property and invest in businesses in the KSA
• Access to public services, including healthcare and education
• The permission to relocate your family, including a spouse, parents, and children under 25, to Saudi Arabia
• The freedom for you and your family to exit and return to Saudi Arabia without an additional visa

Depending on your qualifications and financial circumstances, you can explore the following premium residency products:

1. Unlimited duration premium residency
2. Business investor residency
3. Real estate owner residency
4. Special talent residency
5. Exceptional efficiency residency
6. Entrepreneur residency

Unlimited Duration Premium Residency

This residency product is designed for expats planning to relocate to Saudi Arabia temporarily or indefinitely. It is an investment-based visa that can be obtained in two forms:

1. Permanent premium residency: Requires a one-time payment of 800,000 SAR (around £160,000) and guarantees permanent residence.
2. Temporary premium residency: A renewable visa that requires an investment of 100,000 SAR (around £20,000) per year.

The primary eligibility criteria include proof of financial stability, a valid passport, and no criminal record. Applicants must also demonstrate valid health insurance and comply with security and background verification requirements.

Business Investor Residency

Business investor residency is created for foreign investors planning to invest in economic activities within the KSA. The visa provides direct permanent residency in Saudi Arabia, provided that you:

1. Invest 7 million SAR (approximately £1,400,000) during the first two years
2. Create ten job opportunities within two years

An investor must submit a valid investor licence issued by the Ministry of Investment and demonstrate sufficient financial resources.

All business investments must comply with Saudi commercial regulations, including licensing and sector-specific restrictions.

Real Estate Owner Residency

This residency product grants KSA residency to individuals owning or benefiting from a property in Saudi Arabia worth at least 4,000,000 SAR (approximately £800,000). The visa is valid as long as you own or utilise the property.

To qualify for the visa, the real estate must be free from current or future mortgages. Additionally, it has to be:

• Residential only
• Existing and not developed or undeveloped
• Appraised by the valuers accredited by the Saudi Authority

Foreign ownership restrictions still apply in certain cities and areas, including zones with national security or cultural importance.

Gifted Residency

The special talent residency is granted to talented individuals and professionals in the fields of sports, culture, and the arts.

The visa is valid for five years and is renewable once, provided you still meet the eligibility criteria. However, you are required to spend at least 30 months in Saudi Arabia within the five-year period, either continuously or intermittently.

Some of the eligibility criteria include:

• Obtaining one of the specified awards
• Receiving a recommendation from the Ministry of Sports or Culture
• Demonstrating financial stability sufficient to afford the cost of living in the KSA

Special Talent Residency

This residency programme is designed for highly skilled professionals in scientific, research, and administrative fields whose expertise can contribute to the country’s development. Individuals who fulfil the conditions qualify for permanent residency in Saudi Arabia.

The eligibility criteria vary depending on the profession as follows:

Additionally, researchers are required to have a minimum of three years of experience in a related field, while healthcare workers and scientific professionals must have more than three years of experience in their respective fields.

Entrepreneur Residency

The entrepreneur residency visa is designed to attract entrepreneurs and innovators interested in contributing to the development of various sectors in Saudi Arabia.

To obtain residency, you require an entrepreneur license from the Ministry of Investment and a recommendation letter from the investment entity. The residency duration depends on the category you belong to:

What Are the Tax Implications of Moving to Saudi Arabia as a UK Expat?

Saudi Arabia is known for its favourable tax environment, especially for expatriates. The Kingdom does not impose personal income tax on employment income earned within Saudi Arabia, regardless of your residency status. There is no tax on inheritance, gifts, wealth, or stamp duty-style property taxes. This makes the KSA an attractive option for UK nationals seeking to optimise their financial position.

However, Saudi Arabia is not entirely tax-free, and UK nationals also need to understand their ongoing UK tax obligations, especially in light of the UK’s post-April 2025 international tax reforms, including changes to non-domicile rules, the Foreign Income and Gains (FIG) regime, and the shift towards residence-based Inheritance Tax.

Saudi Arabia’s Tax System for Expats

Although employment income is not taxed, the Kingdom applies several taxes to non-residents and businesses operating in Saudi Arabia:

Corporate tax

Non-residents generating business income through a permanent establishment (PE) in Saudi Arabia—such as a fixed place of business or a dependent agent—are liable for 20% corporate income tax on their Saudi-sourced profits.

Withholding tax (WHT)

Payments from Saudi entities to non-residents may be subject to WHT, including:

• 5% on dividends and interest.
• 15% on royalties.
• 15–20% on technical, consultancy, and management services.

These rates apply even if you are living outside the Kingdom but receive Saudi-sourced income.

Tax for self-employed expats

Business income arising from activities carried out in Saudi Arabia may be taxed at 20%, unless it falls under withholding tax instead. Self-employment income is treated similarly to business income for non-residents.

Social security contributions

Saudi nationals are subject to GOSI pension contributions, but expats are not. Employers must register foreign workers for Occupational Hazard Insurance, which is funded entirely by the employer. There is no employee pension or social security contribution requirement for expats.

VAT

Saudi Arabia levies 15% value-added tax on most goods and services. Businesses operating in the Kingdom may be required to register for VAT and comply with local reporting rules.

Are You Liable for Tax in the UK While Living in Saudi Arabia?

Although Saudi Arabia does not tax employment income, you may still have ongoing UK tax obligations depending on your residency status and the income you retain in the UK.

UK tax residency and the Statutory Residence Test (SRT)

The UK taxes its residents on worldwide income and gains. Whether you remain UK tax resident is determined by the Statutory Residence Test, which considers:

• The number of days spent in the UK.
• Access to UK accommodation.
• Family and work ties.
• Eligibility for split-year treatment.

If you remain a UK tax resident under the SRT, all of your global income—including earnings made in Saudi Arabia—remains taxable in the UK.

Note, remote work for a UK employer can also trigger UK tax liability even when performed overseas, depending on your SRT position and the nature of the duties.

Tax on UK-sourced income

Even if you become non-resident, you will still be taxed on UK-source income, including:

• Rental income from UK property.
• Capital gains on UK residential property (Non-Resident Capital Gains Tax).
• Certain forms of UK investment income.

If you receive rent, you may need to register under the Non-Resident Landlord Scheme so that rental income can be paid gross.

UK-Specific Tax Considerations When Moving to Saudi Arabia

The UK’s international tax rules changed significantly from 6 April 2025, and these updates affect British expats relocating to the KSA.

ISA eligibility and UK financial accounts

Once you become a non-UK resident, you cannot make new ISA contributions, although existing ISA funds can continue to grow tax-free.

Some UK banks and investment providers may impose restrictions on accounts held by clients with overseas addresses.

National Insurance contributions

To maintain entitlement to the UK State Pension, many expats choose to pay voluntary Class 2 or Class 3 National Insurance contributions while abroad. This helps prevent gaps in your NI record during your time in Saudi Arabia, where no reciprocal social security agreement exists.

UK Domicile and Inheritance Tax When Living in Saudi Arabia

Saudi Arabia does not impose inheritance tax, which can make life in the Kingdom financially attractive for UK expats.

However, the UK’s inheritance rules continue to apply even after you relocate, and the country’s 2025 reforms mean that more expatriates may fall within the UK’s IHT scope than before.

The 2025 reforms shift the system toward a residence-based test, meaning long-term UK residents may remain within IHT scope for several years after leaving the UK.

How UK Domicile Works After the 2025 Reforms

From April 2025, the UK moved away from the traditional domicile-based system towards a more residence-driven approach.

While the legal concept of domicile still exists, the tax treatment of international individuals is now determined largely by how long they have lived in the UK in the past.

Under the new framework, many British nationals who relocate abroad remain within the UK IHT system for several years, especially if they have substantial historical ties to the UK.

Key points include:

• Individuals who have been UK-resident for at least 10 years within the previous 15 tax years may remain within the UK’s inheritance tax net, even after leaving the UK.
• Those who return to the UK after a period abroad may be brought back into the IHT system more quickly under the new residence tests.
• The old “15 out of 20 years” deemed domicile rule is being phased out and replaced by a clearer residence-based exposure period, which applies regardless of your chosen domicile status.

Worldwide Assets May Still Be Taxed by the UK

Living in Saudi Arabia does not, by itself, remove you from UK IHT. Under the updated rules, individuals who meet the residence-based criteria can be subject to IHT on:

• Property and assets held in the UK.
• Worldwide assets, including those acquired after relocating.
• Offshore investments and savings.

This means UK expats living in Saudi Arabia may still face a 40% inheritance tax liability on their global estate.

Why IHT Planning Matters for UK Nationals in Saudi Arabia

Saudi Arabia does not levy inheritance tax, but this has no bearing on UK liabilities. Without careful planning, an individual who assumes they are “non-domiciled” or “non-resident” may unintentionally leave a substantial IHT liability for their beneficiaries.

Key risks include:

• Retaining UK property.
• Continuing to hold UK investment accounts.
• Returning to the UK later in life.
• Holding global assets without appropriate estate planning.
• UK-based life insurance or pension lump sums that may fall into the IHT net.

Given that IHT applies to the value of your estate, even assets accumulated during your time in Saudi Arabia may fall within scope.

How the UK–Saudi Arabia Double Taxation Agreement (DTA) Works

The UK and Saudi Arabia have a double taxation agreement designed to prevent the same income being taxed twice. Because Saudi Arabia does not tax employment income, the treaty is most relevant for:

• Business profits.
• Permanent establishment income.
• Dividends, interest, and royalties.
• Certain professional service fees.

The DTA allocates taxing rights between the two countries and normally provides relief through tax credits. It does not automatically eliminate UK taxes.

Common UK–Saudi Tax Misunderstandings to Avoid

When moving from the UK to Saudi Arabia, many expats make assumptions about how their tax position will change.

While Saudi Arabia offers a simple and attractive tax environment, the UK’s rules remain complex and continue to apply in many situations.

Misunderstanding these rules can lead to unexpected liabilities, incorrect filings, and HMRC penalties. Below are some of the most common pitfalls.

Saudi Arabia is tax-free, so HMRC won’t tax my income – Incorrect

Saudi Arabia does not tax employment income, but the UK still may. HMRC taxes individuals based on their UK tax residency status, not where they work or live.

If you remain a UK-resident under the Statutory Residence Test (SRT), your worldwide income – including earnings in Saudi Arabia – remains taxable in the UK. Failing to establish non-UK residency properly can result in significant under-reporting to HMRC.

The UK–Saudi Arabia double tax treaty stops UK tax on all Saudi income – Incorrect

The double tax treaty (DTA) prevents the same income from being taxed twice, but it does not override UK domestic law in every situation.

The UK retains taxing rights over:

• UK property income.
• Capital gains on UK property.
• Most UK pension income.
• Business income linked to UK work duties.

Because Saudi Arabia does not tax employment income, the treaty usually does not reduce UK tax for individuals who remain UK-resident.

“Once I leave the UK, I automatically become non-resident” – Incorrect

Residency is never automatic. You remain UK tax resident until you meet the detailed criteria in the SRT, which considers:

• Days spent in the UK.
• Family and accommodation ties.
• UK work connections.

If you continue working for a UK employer, even remotely from Saudi Arabia, UK tax obligations may still apply unless your role is genuinely performed outside the UK and you meet the non-resident thresholds.

Note that remote work arrangements with UK employers can also affect your residency outcome depending on your ties and travel patterns.

“I don’t need to think about National Insurance once I’m overseas” – Risky

Saudi Arabia does not have a reciprocal social security agreement with the UK. This means time spent working in the KSA does not build UK National Insurance credits.

If you stop contributions entirely, you may reduce your entitlement to the UK State Pension.

Many expats choose to make voluntary Class 2 or Class 3 contributions while abroad to protect their record.

Why Professional Advice Is Essential

While Saudi Arabia’s tax environment is straightforward, the UK’s rules, especially after the 2025 reforms, make cross-border tax planning essential.

Establishing your UK tax residency position, managing UK property and investments, safeguarding your State Pension entitlement, and understanding IHT exposure all require careful analysis.

Financial advisers at Titan Wealth International can support you in reviewing your UK residency status, applying the DTA correctly, planning for long-term estate implications, and structuring your finances efficiently during your time in Saudi Arabia.

Key Considerations for UK Expats Relocating to Saudi Arabia

hen considering relocation to Saudi Arabia, you should explore factors beyond advanced employment opportunities and favourable tax rates, including:

1. Cost of living
2. Housing
3. Pension planning
4. Healthcare and insurance
5. Education

Cost of Living

The cost of living in Saudi Arabia depends on your lifestyle and place of residence. For instance, cities like Riyadh and Jeddah are considered more expensive, while Taif and Abha are more affordable compared to the UK.

Still, the overall cost of living in KSA, including rent, is around 42.8% lower than in the UK. However, cost differences can vary significantly by neighbourhood, lifestyle, and whether housing allowances are included in your employment package.

Since the average salary in Saudi Arabia is slightly lower than in the UK, this difference in costs can contribute to higher savings and increased wealth growth potential.

The median monthly salary across all industries in the UK is £2,521, whereas in Saudi Arabia, it is 11,000 SAR, or slightly less than £ 2,200, before factoring in employer-provided benefits such as housing, transport, and health insurance, which are common components of expatriate packages.

Consult the table below to compare the average costs of everyday expenses in the UK vs. Saudi Arabia:

However, services like the internet and monthly mobile plans are more affordable in the UK.

Housing

When securing housing in Saudi Arabia, you can rent accommodation or purchase a property.

Expats were not allowed to buy real estate in KSA in the past. However, the new property law coming into force in January 2026 will permit foreigners to own property in designated areas, such as Riyadh and Jeddah.

Foreign ownership will still be restricted in certain strategic or culturally sensitive zones, and all property must be registered through the Saudi Real Estate Registration system.

Purchasing and renting property in Saudi Arabia is more affordable than in the UK. This is how prices compare in each country’s capital city:

Pension Planning

Strategic pension planning is essential for UK nationals relocating to Saudi Arabia, particularly as the Kingdom does not operate a state pension system for foreign workers.

This means your retirement income will continue to rely on UK-based pension arrangements or internationally structured solutions that remain compliant with UK rules.

You can continue accessing your UK pension while living in Saudi Arabia once you reach eligibility age, and the KSA will not tax your pension income.

However, the UK will apply income tax to withdrawals, as Saudi Arabia has no double taxation treaty provisions that exempt UK pension income from UK tax, and pension taxation remains based on UK domestic rules.

The Abolition of the Lifetime Allowance (LTA)

The UK abolished the Lifetime Allowance in April 2024. It has been replaced with two new limits that continue to apply to pension withdrawals:

• Lump Sum Allowance (LSA): £268,275 tax-free
• Lump Sum and Death Benefit Allowance (LSDBA): £1,073,100

These allowances apply regardless of your country of residence, meaning UK nationals living in Saudi Arabia must still plan pension withdrawals around these limits.

It is important to note that any additional lump sums above the LSA and LSDBA are taxable as income in the UK.

No QROPS Are Available in Saudi Arabia

Some expats consider transferring their pensions overseas for potential benefits. However, Saudi Arabia has no Recognised Overseas Pension Schemes (QROPS).

There are no QROPS available in Saudi Arabia. If you transfer your UK pension to a QROPS in another country while living in the KSA, the UK is likely to apply a 25% Overseas Transfer Charge because you are not resident in the jurisdiction where the QROPS is based.

Only limited exemptions apply, so most transfers made from Saudi Arabia will incur this charge. This makes QROPS transfers generally unsuitable for UK expats living in the KSA unless residency plans change.

Using SIPPs While Living in Saudi Arabia

Many British expats choose to consolidate UK pensions into an International Self-Invested Personal Pension (SIPP). SIPPs provide investment opportunities through flexibility and are accessible from abroad. However:

• Withdrawals remain taxable in the UK, not in Saudi Arabia.
• SIPPs stay regulated under UK law, even when accessed from overseas.
• Currency and investment strategy should be reviewed when moving abroad to avoid unnecessary risk.
• SIPPs may offer better tax control than QROPS for expats in non-treaty jurisdictions such as the KSA.

Offshore Bonds and Tax Considerations

Offshore investment bonds are sometimes used by expats for long-term planning because they offer tax-deferred growth. However, they do not remove UK tax obligations. Key points include:

• Withdrawals may create a chargeable event that is subject to UK income tax.
• Gains may still be taxable under the UK’s Foreign Income and Gains (FIG) regime, introduced in April 2025 for returning residents.
• Bonds can be beneficial, but they must be structured carefully around your anticipated residency pattern.

Why Pension Planning Matters for UK Expats in Saudi Arabia

Since Saudi Arabia does not impose tax on your pension income, the UK’s rules become the defining factor in your retirement strategy. Understanding how the new allowance framework, overseas access rules, and UK tax residency affect your withdrawals is essential for preserving your retirement capital.

Our professional financial advisers at Titan Wealth International provide tailored pension planning for British expats relocating to Saudi Arabia.

They can help you understand how UK pension rules apply when living abroad, evaluate your international options, and structure your retirement income efficiently and compliantly.

Healthcare and Insurance

Expats are typically required to provide proof of private health insurance before their visa is approved.

If you are entering Saudi Arabia on an employment visa, your employer will provide health insurance. In this case, it’s advisable to review the policy terms to determine what type of coverage it offers and which clinics you are allowed to visit.

Additionally, many UK expats purchase life insurance that includes international coverage to protect their wealth while living in Saudi Arabia and streamline asset transfer to their beneficiaries.

Premium Residency holders must also maintain valid health insurance for themselves and their dependants.

Education

If you are moving to Saudi Arabia with children, it’s crucial to know that public schools are only available to Muslim pupils who are citizens of the KSA. For this reason, most expats enrol their children in international schools.

The annual tuition fees at international schools in Saudi Arabia range from 40,000 SAR (around £8,000) to 100,000 SAR (around £20,000). The prices are typically lower compared to the UK, where the average cost of private education is £15,324 per year, while boarding schools can cost approximately £39,000 annually.

Saudi Arabia vs. Dubai: Which Is More Favourable for UK Expats?

Due to its zero-tax regime, high earning potential, and investment opportunities, the UAE was the first Middle Eastern destination to attract a large number of UK expats. Since the introduction of Vision 2030, Saudi Arabia has been gaining popularity among expatriates, as the two countries offer similar benefits and opportunities.

However, the lifestyle, regulatory environment, and long-term residency options differ significantly, and these differences should be considered carefully when relocating from the UK.

The following table outlines the differences between the two countries’ capitals:

Both Dubai and Riyadh are considered safe destinations for expatriates, with established expat communities, but the cultural environment, family lifestyle, and long-term residency pathways differ. The choice between the two depends on your individual needs and preferences, including your career sector, lifestyle expectations, and long-term plans for residency or investment.