Call us today: +44 (0) 20 3551 6634
If you have kept up with all of our coverage of Saudi Arabia’s expat news, you will be aware that the Gulf state introduced an expat family tax as part of a series of financial reforms set to wean the Kingdom off of its financial reliance on oil. However, some financial experts are warning Saudi Arabia that its expat measures may cause the opposite effect of what they intended.
Once famed for its lack of levies, Saudi Arabia demolished tax-free living back in early 2017 as a way of creating income. Countries throughout the Gulf have also been introducing VAT to some products to further generate revenue.
Lower income expat families from the likes of India, Pakistan, Sri Lanka, Bangladesh and Nepal have been the hardest hit by the new financial measures. Many expat families are having to send their children back to their homelands to stay with friends and relatives to offset the family levy so that they could continue making an income in Saudi Arabia. However, some expats have left Saudi Arabia completely and businesses owners are displeased with the government as they have lost numbers of their workforce which they are finding hard to replace as expats are put-off working in the Kingdom.
Despite the Kingdom putting in the various taxes and expat rules to better the country as a whole, economists warn that these do not seem to be working as intended. With the government set out to help Saudi Arabia and its people flourish, the expat population has suffered. Considering that the expats make up approximately 65% of Saudi Arabia’s workforce, the adverse consequences of levies and other expat legislation are slowly proving the changes to be causing more harm than good.
Expats are already leaving Saudi Arabia and experts only expect this to continue. This will undoubtedly have a negative effect on the already suffering market – apparent in the many signs advertising vacant premises for rent.
Expatriate Group.Delmon House,36-38 Church Road,Burgess Hill,West Sussex,RH15 9AE
Registered Address.35 Ballards Lane,London,N3 1XW
Tel: +44 (0)20 3551 6634Fax: +44 (0)870 428 5141Email: email@example.com
Short Term Healthcare Insurance
Travel Medical Insurance One Way Travel Insurance Single Trip Travel Insurance Annual Multi-Trip Travel Insurance Non UK Resident Travel Insurance Business Travel Insurance
About Us Useful Links Leave a Review Our Awards The Press Room Satisfaction Survey Downloads Legal Notice Underwriters Hospital List
Emergency Assistance information Short-Term Healthcare Working Abroad Insurance Thailand Health Insurance
Register as an Intermediary Opportunities for Brokers
Expatriate Group & Expatriate Healthcare are trading styles of Strategic Insurance Services Limited who is authorised and regulated by the Financial Conduct Authority (FCA). FCA Firm reference Number is 307133. Strategic Insurance Services Limited is authorised to carry on Regulated Activities in accordance with the permissions granted by the FCA under PART IV of the Financial Services and Markets ACT 2000.