Banking, Money and Taxes in Saudi Arabia
To open a bank account in Saudi Arabia you will need a letter of introduction from your employer. It is worth opening an account as transferring funds to and from overseas is expensive. Banking facilities are very advanced, with internet and mobile phone banking standard. ATMs are freely available, some even permit foreign remittances. Cash is still used for most transactions also credit cards are increasing in popularity.
Due to Islamic laws banks do not pay interest on bank balances and do not permit account holders to go into debt.
Under sharia law, non-payment of debt is a criminal offence that can get you imprisoned. Even worse, the sentence does not discharge the debt. This is the reason for the spate of abandoned cars at Riyadh International Airport – expats unable to pay off luxury car debts have simply left their vehicle at the airport and fled the country.
List of banks: www.sama.gov.sa/en/link
Taxation
Foreign employees are not taxed on their salaries – the single biggest advantage to working here. There is a religious wealth tax (known as zakat) which business must pay – but expat businesses are exempt. There is no sales tax on goods or services either.
Foreign employees are not taxed on their salaries – the single biggest advantage to working here. There is a religious wealth tax (known as zakat) which business must pay – but expat businesses are exempt. There is no sales tax on goods or services either.
To incentivise foreign business investment, tax holidays of up to five years are available depending on certain criteria.
