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Working in Saudi Arabia and taxes in home country

Working in Saudi Arabia and taxes in home country

Old Jan 31st 2019, 3:32 am
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Default Working in Saudi Arabia and taxes in home country

Hi!
Many people say: "Oh, living in Saudi Arabia is great because you can save lots of money!"
I know I am going to hate myself for asking this simple question, but I don't understand: If I am a US citizen working in Saudi Arabia, how can I save lots of money of I still have to pay the US taxes, which are about 20% of my income?
OK, let's say I am paid 5000 USD each month in Saudi Arabia. Good salary. But $1000 USD is going for Taxses, right? Si, I am left with 4000 USD in my pocket. Which is still good but still...
Also, If I am going to the US for summer vacations, I will not have a US medical insurance for that period of time. So should I buy a medical insurance before traveling to the US?
Can someone tell me about taxes and medical insurance?
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Old Jan 31st 2019, 1:03 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by iranis View Post
Many people say: "Oh, living in Saudi Arabia is great because you can save lots of money!"
I know I am going to hate myself for asking this simple question, but I don't understand: If I am a US citizen working in Saudi Arabia, how can I save lots of money of I still have to pay the US taxes, which are about 20% of my income?
Obviously the US is different then. If you're a UK citizen, you don't usually pay tax in the UK if you're working in Saudi Arabia. Hence why you'll see people on this forum (aimed at British Expats - although of course other nationalities are very welcome) saying that they'll be saving lots.

HTH.
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Old Jan 31st 2019, 1:05 pm
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Default Re: Working in Saudi Arabia and taxes in home country

P.S. 5000 USD a month surely wouldn't be considered a 'good' salary would it? Seems very low to me, I certainly wouldn't move to SA for that!
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Old Jan 31st 2019, 4:21 pm
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Default Re: Working in Saudi Arabia and taxes in home country

I am not sure what is the average salary range at universities for assistant professors in mathematics with Ph.D in Saudi Arabia? Do you have any idea?
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Old Jan 31st 2019, 4:26 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Thank you very much for your prompt comments! Also, another question about buying a car in Saudi Arabia. If I work at university there, what, you would think, would be a best choice to get a car:
1) Leasing a car (I am not sure though if I can lease it, since, as I understand, leasing should be paid by the company but, I think, universities don't provide leasing)
2) Buying a new car (in this case, I have to take a loan from the bank) and buy a car using cash
3) Buying a used car; it is cheaper and you can still pay the amount by parts, let's say during a year. But how reliable can be a used car, say 2017 Honda?
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Old Jan 31st 2019, 4:44 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by iranis View Post
I am not sure what is the average salary range at universities for assistant professors in mathematics with Ph.D in Saudi Arabia? Do you have any idea?
No idea I'm afraid, it's just that you said it was a 'good salary' and personally it struck me as a low salary for moving to a less desirable country like Saudi. I'd want a heck of a lot more than that to move there!

Last edited by christmasoompa; Jan 31st 2019 at 4:47 pm.
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Old Jan 31st 2019, 5:42 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by christmasoompa View Post
P.S. 5000 USD a month surely wouldn't be considered a 'good' salary would it? Seems very low to me, I certainly wouldn't move to SA for that!
Quite right ... then again I wouldn’t move to the states for that either 😀😀
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Old Jan 31st 2019, 6:37 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Yes, I agree, there is no "limit" for a high salary. For someone, even 1000000 USD might be a low salary.
Any way, I was wondering about taxes.
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Old Jan 31st 2019, 6:48 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by Millhouse View Post
Quite right ... then again I wouldn’t move to the states for that either 😀😀
Ditto! But then I don't get out of bed for less than £10,000 a day, obvs.

Originally Posted by iranis View Post
Yes, I agree, there is no "limit" for a high salary. For someone, even 1000000 USD might be a low salary.
Any way, I was wondering about taxes.
As explained to you, most people on here are Brits, so won't be paying tax on their Saudi salary. Might be worth seeing if there is a similar forum for US expats?
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Old Feb 1st 2019, 5:02 am
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Default Re: Working in Saudi Arabia and taxes in home country

Unfortunately, I could not find any similar forum for US expats. But the only difference is a tax situation, which, apparently, I have worked out. Typically, taxes in the US consist of two parts (state and federal). And, if your income in Saudi Arabia does not exceed $104.000 per month, you should pay only one state tax, which is about 8% of the income. Not bad!
So, if you go to Saudi Arabia, don't work too hard!)))
Actually, thinking of $5000 per month, it is not a bad salary since the universities provide free accommodation and you don't spend more than $300 for food. The only thing now is to figure out how to buy a car there. But, of course, if you make the same amount or more in UK, you don't need to consider moving to SA
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Old Feb 3rd 2019, 3:04 am
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Default Re: Working in Saudi Arabia and taxes in home country

Go see a place like Hertz and do a long term car rental.....easy
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Old Jun 9th 2019, 11:39 am
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by iranis View Post
.... And, if your income in Saudi Arabia ....
Or any other country outside the US.
does not exceed $104.000 per month, you should ....
Per "year".
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Old Jun 11th 2019, 7:27 pm
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Default Re: Working in Saudi Arabia and taxes in home country

US citizens are liable for income tax even when outside USA. That is not the case for UK folk, although that nasty Gordon Brown (who was at school and university with me) wanted to introduce US-style taxation for UK expats.

Notice that I am name-dropping again so everyone can see I mix with important folk.
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Old Jun 12th 2019, 7:45 am
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Default Re: Working in Saudi Arabia and taxes in home country

Originally Posted by iranis View Post
Unfortunately, I could not find any similar forum for US expats. But the only difference is a tax situation, which, apparently, I have worked out. Typically, taxes in the US consist of two parts (state and federal). And, if your income in Saudi Arabia does not exceed $104.000 per month, you should pay only one state tax, which is about 8% of the income. Not bad!
So, if you go to Saudi Arabia, don't work too hard!)))
Actually, thinking of $5000 per month, it is not a bad salary since the universities provide free accommodation and you don't spend more than $300 for food. The only thing now is to figure out how to buy a car there. But, of course, if you make the same amount or more in UK, you don't need to consider moving to SA
1000 SAR a month on food might be a bit frugal. In a place with little joy, food is something to be enjoyed. Make it $500+ a month.
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Old Jun 13th 2019, 3:23 pm
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Default Re: Working in Saudi Arabia and taxes in home country

Most people put on weight when in KSA. Comfort eating ?
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