HorizonUK Tax Solutions

Do I pay UK tax if I move to Saudi Arabia?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 28 July 2026. Last reviewed 28 July 2026.

The short answer

Yes, you keep paying UK tax on your worldwide income, including your new Saudi salary, until you become non-resident under the Statutory Residence Test. Simply moving is not enough: residence is a test, not a choice. Once you are correctly non-resident, the UK taxes only UK-source income such as rent, and Saudi Arabia charges no personal income tax on salaries. The year you leave is the highest-risk year, because missing split-year treatment can leave your Saudi earnings taxable in the UK.

  • You stay taxable in the UK on worldwide income until you break UK residence under the Statutory Residence Test.
  • Split-year treatment can make you non-resident from your departure date, but only if you meet a qualifying case.
  • Saudi Arabia levies no personal income tax on salaries, though you pay 15% VAT on most spending in the Kingdom.
  • Keep a UK rental property and you stay in the Non-Resident Landlord Scheme and file a UK return every year.
  • Return to the UK within five years and gains and certain dividends taken abroad can be taxed on your return.

Yes, until you break UK residence

UK tax follows residence, not location. Until you become non-resident under the Statutory Residence Test, HMRC can tax your worldwide income, including a Saudi salary that Saudi Arabia itself does not tax. An Iqama and a Riyadh employment contract do not make you non-resident on their own. For most people taking a full-time job in the Kingdom, the cleanest route is the full-time work abroad test: sufficient hours overseas with no significant break, fewer than 91 days in the UK in the tax year and fewer than 31 UK workdays. Because most moves happen mid-year, split-year treatment is what stops the whole departure year being taxed as UK-resident, but it has strict conditions and is a relief you qualify for, not a default.

What the UK still taxes afterwards

Once non-resident, you pay UK tax only on UK-source income and gains on UK land. Rental income from a UK property stays taxable: you fall within the Non-Resident Landlord Scheme, can apply on form NRL1 to receive rent gross, and still file a Self Assessment return each year. Most British nationals keep the £12,570 personal allowance, which can shelter modest rental profits. Sell a UK residential property and non-resident Capital Gains Tax applies at 18% or 24%, reportable within 60 days of completion. Tell HMRC you are leaving using form P85, or the SA109 residence pages if you already file Self Assessment.

The Saudi side and the five-year trap

Saudi Arabia charges no personal income tax on employment income and no personal capital gains or inheritance tax, though you will pay 15% VAT on most spending and usually monthly dependant fees for family on your visa. Our Saudi Arabia guide covers the local picture, including the 2026 foreign property ownership rules. One UK rule outlasts the move: if you were UK resident in at least four of the seven tax years before leaving and return within five years, gains and certain dividends taken while abroad become taxable in your year of return. UK inheritance tax is also now residence-based, so a long-term UK resident can stay within its scope for three to ten years after departure.

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

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