Family Office in Saudi Arabia: Rules, Costs and Tax in 2026
No dedicated family office licence or regime was found in official Saudi sources. A family office is run through an ordinary company under the Companies Law, in force since 19 January 2023, which lets family-owned companies adopt a family charter, while managing securities for others by way of business needs Capital Market Authority (CMA) authorisation. Saudi and GCC owners pay zakat at 2.5% of the zakat base, foreign-owned shares pay 20% income tax, and inheritance follows the Sharia shares set out in the 2022 Family Law. [1, 2, 3, 4, 5, 6]
Best for: Saudi and GCC families with businesses and assets in the Kingdom who want a company-based family office with a family charter written into its articles, and zakat rather than income tax on their shares.
At a glance
| Licence | No family office licence found; a Companies Law company, with a CMA group exclusion |
|---|---|
| Minimum wealth | No official figure found |
| Who counts as family | No official figure found |
| Serving several families | CMA authorisation to manage, advise or arrange for others by way of business |
| Law and courts | Companies Law, Family Law, Sharia where it is silent; commercial and personal status courts |
| Substance | No family office rule found; RHQs need a local office, senior staff and an ESR filing |
| Holding vehicles | Joint stock, simplified joint stock, LLC, partnerships, CMA funds, waqf; no trust law found |
| Corporate tax | 20% income tax on foreign-owned shares; 2.5% zakat on Saudi and GCC shares (2026) |
| Family office tax | No family office regime found; licensed RHQs pay 0% on eligible RHQ income for 30 years |
| Personal income tax | No individual income tax scheme; employment income not taxed (reported by PwC, 2026) reported |
| Inheritance tax | None reported by PwC (2026); real estate passing to heirs exempt from 5% RETT reported |
| Wills and succession | Sharia shares under the 2022 Family Law; wills above one third need heirs' approval |
| Residence | Premium Residency: SAR 7 million and 10 jobs, or SAR 4 million property (reported) reported |
| Time to set up | 10 working days for MISA investment registration; company registration time not found |
| Official fees | No official figure found |
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Licence and who qualifies
How is a family office licensed in Saudi Arabia?
No family office licence or registration regime was found in official sources. A family office is set up as a company under the Companies Law and registered with the Ministry of Commerce, which issues the commercial registration; foreign investors and Premium Residency holders register their investment with the Ministry of Investment (MISA). Under the CMA Securities Business Regulations (last amended 12 August 2020), securities business carried on 'by way of business' needs CMA authorisation (Article 5), but arranging, managing, advising and custody provided by a group member for 'a member of the same group' are excluded (Article 8); neither the regulations nor the CMA Glossary of defined terms (amended 2 March 2026) mention family offices. [1, 2, 3, 7, 8, 9]
What is the minimum wealth for a family office in Saudi Arabia?
Not found in official sources. No family office regime was found, and the CMA regulations and Ministry of Commerce Companies Law notices opened do not mention any family wealth threshold. [1, 2]
Who counts as family?
Not found in official sources. With no family office regime, no official definition of the family that a family office may serve was found. The CMA group exclusion covers only services provided to members of the same group, which the CMA Glossary (amended 2 March 2026) defines as a person and each of its affiliates, meaning persons linked by control (30% or more of the voting rights in a company, or the right to appoint 30% or more of its governing body, held directly or indirectly, alone or with a relative or affiliate); no official text says whether family members holding assets in their own names form one group. [1, 9]
Can one office serve several families?
Dealing, arranging, managing securities 'belonging to another person', advising or custody, carried on by way of business, needs CMA authorisation as a capital market institution; carrying on securities business without it is an offence under Article 60 of the Capital Market Law (Securities Business Regulations, Articles 2, 3, 5 and 6). For example, the CMA announced in October 2021 that The Family Office International Investment Company had completed the requirements to start managing investments and operating funds. [1, 10]
Law, substance and vehicles
Which law and courts apply?
Key laws for families are the Companies Law (in force since 19 January 2023) and the Family Law issued by Royal Decree M/73 of 9 March 2022, often called the Personal Status Law; where the Family Law has no specific provision, 'the provisions of Sharia that are most consistent with this Law shall apply' (Article 251). First instance courts are general, criminal, personal status, labour and commercial courts: commercial courts hear disputes between merchants, and personal status courts handle waqf (endowments), wills, determination of heirs and the distribution of disputed inheritances. [3, 6, 11, 12]
What substance is required?
No office, staff or spending rule for family offices was found. Substance rules apply to licensed Regional Headquarters (RHQ): ZATCA requires a physical office in Saudi Arabia, board meetings held there, at least three senior employees, at least one director resident in Saudi Arabia, local operating expenses and an annual economic substance declaration, and MISA requires an RHQ to employ at least 15 full-time employees within one year of licensing. [4, 7]
Which holding vehicles are available?
The Companies Law covers the joint stock company, the simplified joint stock company (new in 2023), the limited liability company and two partnership forms (named in the Ministry of Commerce's English release as 'joint-venture company' and 'special limited partnership'); family-owned companies can adopt a family charter that becomes part of the articles of association or bylaws. Investment funds are operated by CMA-licensed institutions, and waqf (endowments) are established through the personal status courts. No trust law or foundation law was found in the official sources opened. [2, 10, 11, 13, 14]
Tax
What is the corporate tax rate?
Income tax is 20% for the shares of non-Saudi partners in resident companies, and 50% to 85% for oil and hydrocarbon production (MISA tax overview, checked October 2026); ZATCA's income tax guideline (May 2026) also lists non-residents with a permanent establishment or Saudi-source income as taxpayers. Shares owned by Saudi and GCC nationals pay zakat instead, at 2.5% of the zakat base for a Hijri year, pro rata where the financial year differs from the Hijri year (Implementing Regulations for Zakat Collection 1445H, Article 15), and a holding company and its wholly owned subsidiaries may file one consolidated zakat return with ZATCA's approval (Article 16). Withholding tax on payments to non-residents is 5% on dividends and loan charges, 15% on royalties and 20% on management fees (ZATCA, May 2026). [4, 5, 15, 16, 17]
Are there tax incentives for family offices?
No tax regime for family offices was found. A Regional Headquarters licensed by MISA gets 0% income tax on income from eligible RHQ activities for 30 years from the licence date (renewable) and 0% withholding tax on dividends, payments to related persons and necessary services paid to non-residents, provided it carries on no other commercial activity; Saudi and GCC shareholders' shares may still pay 2.5% zakat. The sources opened do not say whether a family office can qualify. For CMA investment funds, unitholders pay zakat on their share of the fund's zakat base (Zakat Regulations, Articles 75 to 79). [4, 5, 7]
Is there personal income tax?
PwC reports (Worldwide Tax Summaries, reviewed 29 July 2026) that 'there is no individual income tax scheme in Saudi Arabia' and that earnings derived only from employment in Saudi Arabia are not taxed, non-employment income being taxed at entity or permanent establishment level. No official page saying this in those words was found: ZATCA's income tax guideline (May 2026) does not mention employment income and lists as taxpayers non-Saudi shareholders in resident companies, non-residents with a permanent establishment or Saudi-source income, and oil, hydrocarbon and natural gas investors. Zakat is collected from Saudi residents practising a licensed activity, and ZATCA's withholding guideline says amounts earned by visiting expatriates or others doing temporary work in the Kingdom bear 20% income tax or 15% withholding tax depending on residency status, unless they arise from an employment relationship under the labour laws. [5, 16, 17, 18, 19]
Reported by the sources named, not confirmed by an official source.
Is there inheritance or estate tax?
PwC reports (Worldwide Tax Summaries, reviewed 29 July 2026) that 'there are no inheritance, estate, or gift taxes in Saudi Arabia'. No official statement in those words was found: MISA's tax overview, which calls its list non-exhaustive, names income tax, zakat, withholding tax, VAT, excise tax and real estate transaction tax (RETT) but no inheritance tax, and the Family Law (Article 198) applies an estate to burial costs, debts, the will and then the heirs without mentioning any tax. ZATCA's RETT guideline (May 2026) exempts from the 5% RETT the distribution of an estate's real estate to heirs within their legal shares, a notarised will, and a notarised gift of real estate to a spouse or relative up to the third degree, unless the donee transfers it within three years to someone who would not qualify. [6, 15, 20, 21]
Reported by the sources named, not confirmed by an official source.
Succession and residence
How do wills and succession work?
The Family Law (Royal Decree M/73, 2022) codifies Sharia inheritance: an estate pays burial costs, then debts, then the will, and the rest goes to heirs in fixed shares (two-thirds, one-half, one-third, one-quarter, one-sixth, one-eighth), with residuary heirs taking what is left. A will is executed up to one third of the estate, more needs the heirs' approval, and a bequest to an heir needs the other heirs' approval after death (Articles 179 and 190); people of different religions do not inherit from one another, but a will may benefit a Muslim or non-Muslim (Articles 178 and 202). Families can set ownership and share transfer rules in a Companies Law family charter, and the Ministry of Commerce says heirs can hold their inherited interest in a company directly or through a company set up for that purpose. [2, 6]
Can the family get residence?
Official sources: the Premium Residency Permit Law provides permanent and fixed-term permits, with products and fees approved by the Council of Economic and Development Affairs, and lets holders reside in the Kingdom with their family (spouses, children and parents); the Unified National Platform lists seven products, including Business Investor and Real Estate Owner residency (launched January 2024), without thresholds or fees. Reported terms (Gulf News, January 2024; Deloitte, February 2024; AHYSP law firm, March 2025): Investor residency needs an investment licence, at least SAR 7 million invested in economic activities in Saudi Arabia and at least 10 jobs created within the first two years; Real Estate Owner residency needs developed residential property worth at least SAR 4 million, free of mortgages. Saudipedia, the Ministry of Media's encyclopedia (2022), gives SAR 800,000 once for the unlimited duration permit and SAR 100,000 a year for the one-year renewable permit; the official product pages (pr.gov.sa) could not be opened. [22, 23, 24, 25, 26, 27, 28, 29]
Reported by the sources named, not confirmed by an official source.
Time and fees
How long does set-up take?
Indicative, checked 19 October 2026: MISA's Investor Guide (13th edition, March 2026) estimates 10 working days to process an investment registration, and the Unified National Platform lists 90 working days for a Premium Residency application. No official time for Ministry of Commerce company registration was found. [7, 23]
What are the official fees?
Not found in official sources. MISA's Investor Guide (March 2026) says the investment registration fee is 'determined by the ministry upon approval of the application' but gives no amount, and registering a non-Saudi company to own real estate is free. Premium Residency fees are approved by the Council of Economic and Development Affairs and the Unified National Platform says they vary by service; amounts come only from Saudipedia (2022) and secondary sources (see residency). [7, 22, 23, 29]
Pros and cons
Pros
- Family-owned companies can write a family charter into their articles under the Companies Law in force since 2023.
- Saudi and GCC owners pay zakat at 2.5% of the zakat base instead of 20% income tax, and PwC reports no individual income tax and no inheritance, estate or gift tax.
- CMA rules exclude arranging, managing, advising and custody for members of the same group (a person and its affiliates) from licensing.
Cons
- No dedicated family office regime, no official family definition and no trust or foundation law were found.
- Sharia succession rules apply: a will above one third of the estate, or in favour of an heir, needs the heirs' approval.
- Foreign-owned shares pay 20% income tax, and dividends paid to non-residents bear 5% withholding tax.
