A Detailed Guide - What is The Expat Salary in Saudi Arabia?

You see it everywhere “tax-free salary,” “luxury lifestyle,” “huge savings.”
Your recruiter promises a big number. You imagine a shiny apartment, fancy schools, shopping trips, and vacations.

But then you arrive…
And the rent is more than half your salary.
Groceries cost way more than back home.
Your child’s school fees feel like a second mortgage.

No worries,
Thousands of professionals move here every year, excited by high numbers.
But many end up shocked at how fast their money disappears.
Let’s break down expat salary in saudi arabia in this guide and you have to handle your salary easily. 

The Dream of Tax-Free Income

Saudi Arabia is often seen as an expat paradise, primarily because of its tax-free salary. Unlike many other countries, Saudi Arabia does not levy any income tax, which sounds like an ideal situation for most professionals.

It’s tempting to think that your salary will go much further without the usual tax deductions that occur in other nations. However, while this tax-free income is a major draw for expats, it doesn’t automatically mean that the cost of living is low.

In fact, in some ways, the cost of living can be high — particularly when it comes to housing, education, healthcare, and day-to-day expenses.

One of the biggest adjustments that expats face upon moving to Saudi Arabia is understanding that the cost of living can vary dramatically depending on the city they choose to settle in.

Whether you’re living in the bustling capital of Riyadh, the coastal city of Jeddah, or the more industrial city of Dammam, your expenses will differ greatly.

That said, knowing exactly how much salary is necessary to maintain a comfortable lifestyle is essential for expats to make informed decisions about moving to Saudi Arabia.

Location Matters

The cost of living in Saudi Arabia can differ significantly depending on where you choose to live. The three major cities that attract the most expats are Riyadh, Jeddah, and Dammam.

Let’s start with Riyadh, the capital city. Riyadh is the largest and most developed city in Saudi Arabia. The city is home to a vast array of business opportunities, modern infrastructure, and luxury amenities.

However, this comes at a price. Rent is typically higher in Riyadh compared to other cities. For instance, a one-bedroom apartment in a central area can cost anywhere from SAR 2,600 to SAR 5,000 per month.

A three-bedroom apartment will cost between SAR 6,000 and SAR 9,000 a month.

Jeddah, a coastal city known for its relaxed atmosphere and proximity to the Red Sea, is another popular destination for expats.

Rent in Jeddah is generally lower than in Riyadh, but it still carries a significant price tag. A one-bedroom apartment in a desirable neighborhood may cost between SAR 2,000 and SAR 2,800, while a three-bedroom apartment might cost between SAR 5,500 and SAR 8,500.

Dammam and Al Khobar, on the other hand, offer more affordable housing options, making them attractive for families who want to balance costs with amenities. While rent is generally cheaper in these cities, housing can still take up a substantial portion of your salary.

If you’re an expat looking for a more budget-friendly living arrangement, suburban areas or smaller cities like Madinah, Jubail, and Al Khobar could provide more affordable options.

For more detailed visit https://www.bayut.sa/en/

And if you are planning to have house through loan, then we've got the detailed guide on that too 

“What is the Expat Loans in Saudi Arabia?”

Hidden Costs

While housing is one of the largest expenses for expats, it’s by no means the only one. Utilities such as electricity, water, and gas can cost an average of SAR 345 to SAR 425 per month, depending on your consumption.

Although utilities are relatively cheap compared to Western standards, the costs can still add up quickly, especially during the summer months when air conditioning is essential.

Transportation is another area where expats need to budget carefully. Fuel prices in Saudi Arabia are among the lowest in the world, with a gallon of gasoline costing between SAR 7.9 and SAR 9.6.

This makes owning a car a viable option for most expats. However, car ownership comes with its own costs, such as maintenance, insurance, and fuel.

Public transportation in Saudi Arabia is relatively inexpensive, with a one-way metro or bus ticket costing just SAR 3.75. However, taxis and ride-sharing apps like Uber and Careem are more common, with rides starting at around SAR 15-20.

In Riyadh, a metro system is currently under construction, which will likely make public transport more accessible and affordable in the future.

For families, education is a major consideration. International schools in Saudi Arabia charge high tuition fees, which can range anywhere from SAR 21,700 to SAR 40,000 annually, depending on the school.

If you have children, this expense will significantly impact your overall cost of living. While public education is free for Saudi citizens, expats will need to rely on private or international schools.

Healthcare and Insurance

Healthcare is another area where expats need to plan their budget carefully. While Saudi Arabia offers excellent healthcare facilities, it is important to remember that public healthcare is only free for Saudi nationals.

Expats are required to have private health insurance, which can cost anywhere from SAR 500 to SAR 1,500 per month, depending on the type of coverage you choose.

International health insurance plans tend to be more expensive but offer broader coverage, including dental and maternity care. Given the relatively high cost of private insurance, it is wise for expats to factor healthcare costs into their salary requirements.

How Much Salary is Enough for Different Lifestyles?

Now that we’ve covered some of the main living expenses in Saudi Arabia, let’s discuss how much salary is generally enough for different types of expat lifestyles.

• Single Expats (Bachelor Living): 

For a single professional living in Riyadh or Jeddah, a budget lifestyle can be maintained with a salary between SAR 5,000 and SAR 7,000 per month. However, to live more comfortably, you’d likely need between SAR 8,000 and SAR 12,000 per month. If you’re aiming for a luxury lifestyle with a good apartment, regular dining out, and occasional travel, a salary of SAR 15,000 or more would be required.

• Married Couple (No Kids): 

For a married couple without children, a budget lifestyle could range between SAR 10,000 and SAR 14,000 per month. However, if both partners are working, they may comfortably live off a combined income of SAR 18,000 to SAR 25,000. For a more luxurious lifestyle with premium housing and leisure activities, a salary of SAR 30,000+ would be necessary.

• Families with Children: 

Families with children require a more substantial budget. A family of four (with children in international schools) would need anywhere from SAR 20,000 to SAR 25,000 per month to cover rent, schooling, healthcare, transportation, and day-to-day expenses. For a luxury family lifestyle, a salary of SAR 30,000 and beyond is recommended.

Can You Save Money in Saudi Arabia?

Despite the seemingly high living costs, expats can still save a significant portion of their salary in Saudi Arabia. This is largely because there is no income tax, and many expats also receive additional allowances for housing, transportation, and healthcare, which further increase their disposable income. With careful budgeting, it’s possible to save anywhere from 20% to 50% of your income.

For expats, investing in Saudi Arabia’s real estate market can also be a wise decision. The country’s growing property market offers lucrative opportunities for those looking to purchase property. Additionally, the Saudi government is actively encouraging foreign investment in various sectors, including real estate, making it an exciting time for expats to explore investment opportunities.

Conclusion:

The cost of living in Saudi Arabia can vary greatly depending on your lifestyle choices, the city you live in, and whether or not you have dependents. For a single professional, a salary of SAR 10,000 to SAR 15,000 per month may be enough to live comfortably, while a family will need at least SAR 20,000 to SAR 25,000 to maintain a decent lifestyle.

Before relocating, it’s really important to research salary benchmarks, estimate your monthly expenses, and ensure that your income will cover not only your daily costs but also any unexpected expenses. By understanding the full picture of the cost of living, expats can make better decisions about their move to Saudi Arabia and ensure a smooth transition into their new life.

For expert guidance on real estate investment, cost-of-living insights, or finding the perfect home in Saudi Arabia, visit Real Estate Saudi.

FAQs: What is the expat salary in Saudi Arabia?

1. Is SAR 10,000 a good salary for an expat in Saudi Arabia?

A salary of SAR 10,000 is generally considered decent for a single expat, especially in cities like Dammam or Jeddah where the cost of living is slightly lower than Riyadh. It can cover rent, food, transportation, and basic entertainment. However, if you have a family or want to live more luxuriously, you may find it tight.

2. Do expats pay taxes in Saudi Arabia?

No, expats do not pay personal income tax in Saudi Arabia. This tax-free policy is one of the biggest financial benefits of working in the Kingdom. However, there are indirect taxes like VAT (Value Added Tax) on goods and services, currently set at 15%.

3. Can expats save money while living in Saudi Arabia?

Yes, many expats manage to save 20% to 50% of their income, depending on their lifestyle and salary. The absence of income tax, combined with employer-covered expenses like housing or transport, allows room for savings — especially for single individuals or dual-income couples.