United Arab Emirates vs Saudi Arabia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐ช United Arab Emirates โ Emirate-Level Fees & Free Zone Benefits
The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10โ15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0โ9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.
๐ธ๐ฆ Saudi Arabia โ Zakat, Salam & Municipality Fees
Saudi Arabia has no local or regional income taxes on individuals โ the Kingdom operates as a unitary state for tax purposes. Municipalities (amanaat) collect fees for commercial licences, land use, and services. Zakat (Islamic wealth levy at 2.5% of Zakat base) applies to Saudi nationals and GCC citizens with business income, instead of income tax. Foreign companies pay CIT at 20%. The government levies municipality fees of 2.5% on commercial and residential rents. Vision 2030 is transforming the fiscal landscape.
United Arab Emirates vs Saudi Arabia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ธ๐ฆ Saudi Arabia has a higher top income tax rate (0% vs 0% / 20%). ๐ฆ๐ช United Arab Emirates is more favourable for high earners.
๐ VAT/Sales Tax: Saudi Arabia has a higher consumption tax (5% vs 15%).
๐ข Corporate Tax: ๐ฆ๐ช United Arab Emirates offers a lower corporate rate (9% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ช United Arab Emirates taxes investment gains at a lower rate (0% vs 20%), benefiting investors.