RHQ Program: Tax Breaks and How to Qualify

Foreign companies that establish a Regional Headquarters (RHQ) in Saudi Arabia can access a package of long-term incentives, provided they obtain an RHQ licence from the Ministry of Investment (MISA). The programme rewards firms that run regional functions from inside the Kingdom.

The headline benefit is 0% corporate income tax on qualifying RHQ activities for 30 years from the date the licence is granted, with the option to renew. A matching 0% withholding tax applies to qualifying payments tied to RHQ activities over the same period. The RHQ entity also receives a 10-year exemption from Saudization (Nitaqat) requirements.

Why it matters

A key advantage is access to government contracts. Foreign companies without an RHQ are excluded from Saudi government contracts valued above SAR 1 million, a restriction described as taking effect by early 2026. Having an RHQ opens the door to this public procurement.

The package also includes practical support for staff: accelerated visa processing and expanded visa capacity for executives and employees, professional accreditation waivers for eligible roles (with exceptions for engineering and medical positions), and work rights for spouses.

To qualify, a company must set up a regional headquarters entity in the Kingdom, obtain the RHQ licence from MISA, and actually perform regional headquarters functions from Saudi Arabia. The incentives apply to the licensed RHQ entity only — not automatically to subsidiaries or affiliates — and the tax relief covers only eligible RHQ income and activities.

For the growing expat and business community across the Kingdom, the programme signals a long-term push to make Saudi Arabia the base for regional operations, bringing more senior roles, jobs, and services closer to home.

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