Qatar or Saudi Arabia: where should your business be based?

Qatar: The 10% rate applies to the foreign-owned share of mainland profits and to QFC locally sourced profits. Companies wholly owned by Qataris and GCC nationals resident in Qatar pay no income tax. Large groups face a 15% minimum top-up tax from 2025. There is no VAT. Saudi Arabia: Income tax of 20% applies to profit attributable to non-Saudi, non-GCC shareholders, and 2.5% zakat applies to the Saudi and GCC share. VAT is 15%. Qualifying regional headquarters activities pay 0% income tax and withholding tax for up to 30 years.

Qatar: MoCI commercial registration through the Single Window takes 2 to 3 business days, from QAR 500 a year. A QFC holding company or SPC costs USD 500 to apply and USD 500 a year; a QFC LLC pays USD 5,000 a year. Saudi Arabia: A foreign investor registers with MISA, which aims to complete investment registration within 10 working days, and then obtains a Commercial Registration from the Ministry of Commerce. Since April 2025 a Commercial Registration no longer expires but the company must update and verify its data every year.

Qatar: Mainland companies need approved premises. QFC firms need a registered office in the QFC, a Senior Executive Function and a Qatar resident director and secretary, unless a licensed support service provider fills these roles. Saudi Arabia: A company needs a Saudi address and, once it employs staff, must keep a set share of Saudi nationals under the Nitaqat system run by the Ministry of Human Resources. A licensed regional headquarters must hire at least 15 full time staff within its first year, 3 of them at executive level.

Qatar: Companies declare beneficial owners holding 20% or more to the Ministry of Commerce and Industry with their commercial registration application. QFC companies file an annual UBO report. Neither register is public. Saudi Arabia: Since 3 April 2025 every company files its beneficial owners, anyone holding 25% or more, with the Ministry of Commerce and reports changes within 15 days. The register is not open to the public, and fines reach SAR 500,000.

Qatar: Buying property worth QAR 730,000 brings a renewable residence permit without a sponsor, and QAR 3.65m brings permanent residency privileges. An entrepreneur residency needs endorsement by a local incubator. Saudi Arabia: Premium Residency offers Special Talent, Gifted, Investor, Entrepreneur and Real Estate Owner routes, plus a Limited Duration residency at SAR 100,000 a year and an Unlimited Duration residency for a one time SAR 800,000. The Investor route asks for SAR 7 million invested and 10 jobs.