frog61

Hello all
I have been approach about a role in the capital working for a western company there. Its a 1 year contract, possibly longer however.
I understand the salary is about USD$12K per month with an additional $2-3K per month for expenses, accommodation etc.
Is that considered good enough?
Would probably be myself, leaving wife and child in the UK.
I understand there are new tax laws that have come into effect in Saudi, what could I expect take home to be?
I think the salary is good, however with taxes and living expenses, would look to send £6-7K back to UK per month. Is it achievable without living in a hole and eating baked beans everyday?

Thanks

scot47

I would be more concerned about tax liabilities in the UK. Check up on rules about being outside UK for tax purposes. Some people find Saudi Arabia in general, and Riyadh in particular, difficult to cope with.
In your post you quote dollars but then talk about remitting in sterling. How will you be paid ? Locally in Saudi currency ?

frog61

Thanks Scot
As I understand it from the agent, they would be willing to pay in whatever account I would wish whether that be in USD or GBP.
I have a Revolut account with good exchange rates, so initially thought about having monies paid into that.
But yes I need to do some research into tax rules, I'm sure I have read somewhere if your out of country for 6 months then UK tax liability is nil, but would need to check on that.
My father once worked over there, lived in a compound, he advised the expat community is quite good and can be fun, but otherwise outside of compound can be difficult. Suppose depends how much you want to get involved in things.
My main concern is quality of living / housing, safety and day to day living costs. I've done research on some of this and day to day seems to be cheaper than UK by about 20%, not sure about living costs.

scot47

Frog
You are wrong about the 6 months.

frog61

gulp...12?

scot47

More complicated. It relates to tax years.

HiHo

2 whole tax years minimum to avoid investigation, with less than 90 day/year in the UK (although I did three once and they still investigated me)
Due to Covid 19 and the onset of summer all party's and concerts are off so you entertainment expenses will be less.
The maths works subject to the above.

scot47

I knew one who went to Saudi to work. Could not stand it. Had a series of "Psychotic episodes". Shipped home Then faced with a backdated bill for UK tax. So be careful.

Others have problems maintaining a long distance relationship or marriage. Some come back to Blighty and find that their partner has made other arrangements.

Others may like it. On and off, I spent 17 years in "The Magic Kingdom"

Standanista

There are a series of tests applied by HMRC for tax liability. Check out their stuff online. USD$12K per month plus expenses could be good dollar or undercooked, depending on what field you're in. Either way though, you're not going to starve on that. Good luck.

FriendlyExpat

Saudi tax - there is an small expat levy, not much but due to increase. For no obvious reason it is calculated based on a monthly charge for each family member you bring with you (?!?) Check if deducted from your salary or paid by employer (good employers pay it in addition to your salary). It's pretty small so for a UK level salary not a material factor. Read more here: https://www.ey.com/gl/en/services/pe...dependent-levy

UK Tax - you need get specialist advice here. If you just leave for 6 months you'll almost certainly pay full UK tax on your entire Saudi salary + expenses allowance. Most common solution is to work abroad for a complete tax year (so if you leave UK after 6 April 2020, you'd need to work continuously overseas until 5 April 2022). Do NOT wing it. HMRC will come after you with massive enthusiasm if you try to be creative and they spot you (which they are good at doing).

Saudi safety - Saudi is about as safe as London. Biggest concern at the moment is the regional tension. Note that compound security has just been removed.

Cost of living - very cheap. Western goods are more expensive in supermarkets than in UK, but if you buy local equivalents they are extremely cheap. Major expense is compound housing (you need 120 - 170k SAR per year for a small mid level or better compound apartment, 120k - 170k SAR will get you a bungalow in a low end compound and for a villa in a mid level or better compound you need 200k - 250k SAR or more). Quality of housing is often low to average, similar to UK but far below US.

Cars & petrol are cheap. Flights variable (sometimes more expensive as it's a smaller market and sometimes cheaper due to subsidized airlines). Domestic flights are dirt cheap.

FriendlyExpat

Also worth mentioning - you can live off-compound. FAR cheaper but your family might feel a bit trapped so not recommended if you are bringing them with you. If you're on your own, it's a good option if you want to maximise savings.