RHQ Programme: Tax Breaks and How to Qualify

Multinational companies setting up a Regional Headquarters (RHQ) in Saudi Arabia can access a wide package of tax, labour, and residency incentives, administered by the وزارة الاستثمار through the Invest Saudi RHQ portal. The programme is aimed at drawing global firms to base their regional operations in the Kingdom.

The headline benefit is tax related. Eligible RHQ income qualifies for a 0% corporate income tax rate for 30 years from the date the RHQ licence is granted, renewable if the entity continues to meet the conditions. A matching 0% withholding tax applies for 30 years on eligible outbound payments, including dividends and payments to non-resident related and unrelated parties tied to RHQ activities. Standard Saudi taxes still apply outside these incentives, including 20% corporate income tax on non-RHQ activities, 15% VAT, real estate transaction tax, and zakat.

Visas and labour advantages

On the labour side, the RHQ entity receives a 10-year exemption from Saudization (Nitaqat) percentage requirements and an automatic 250 work visas from day one, with no upper cap on total visas for RHQ employees. Firms can also secure visas in professions normally reserved for Saudis, benefit from fast-track processing for senior executives, and allow dependants of RHQ employees to work through the AJEER programme. The maximum residency age for male dependants is extended to 25 years, with no age cap for single female dependants.

An RHQ licence also unlocks eligibility to bid in Saudi government and PIF-related tenders, from which foreign companies without an RHQ are generally excluded. Up to three of the RHQ's executives may qualify for Premium Residency under separate procedures, while accredited professionals may be exempt from local professional accreditation requirements.

To qualify, a company must be a multinational with operations in at least two countries outside its home jurisdiction and must establish an RHQ legal entity in Saudi Arabia. For residents and expat professionals, the programme signals more senior regional roles and long-term family stability in the Kingdom.

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