Saudi Arabia is offering several significant incentives to attract multinational companies, including European banks, to relocate their regional headquarters to the Kingdom:

Tax Incentives

• 30-Year Tax Exemption: Companies are offered a 30-year tax relief package, which includes:

• Zero percent corporate income tax on qualifying income

• Zero percent withholding tax on dividend payments made by the regional headquarters to nonresidents

• Zero percent withholding tax on payments to related persons and unrelated persons for services necessary for the regional headquarters activities

• These tax benefits apply from the date of issuance of the regional headquarters license.

Additional Benefits

• Flexibility in Saudization Requirements: Companies relocating their headquarters may receive special benefits for complying with Saudization (local employment) requirements.

• Support for Executive Relocation: The program aims to attract executives and high-skilled professionals by making Saudi Arabia an appealing destination for career advancement.

Eligibility Criteria

To qualify for these incentives, companies must meet certain conditions:

• Establish a separate legal entity in Saudi Arabia as a company or registered branch of a foreign company

• Have a presence in at least two jurisdictions other than Saudi Arabia and the country where the company’s main headquarters is located

• Apply for and obtain a regional headquarters license from the Ministry of Investment

These incentives are part of Saudi Arabia’s broader strategy to diversify its economy, attract foreign investment, and position itself as a major business hub in the Middle East and North Africa region.