Entering Saudi Arabia from Germany.
The parts of the route that depend on your company being from Germany: the documents, and the tax between the two countries. Everything else is the same for every foreign company, and set out below.
Your parent company’s documents
The German Embassy in Riyadh states that German documents for Saudi Arabia receive an apostille only, with no embassy legalisation. Notarial documents are apostilled by the president of the regional court responsible for the notary; federal documents by the Federal Office for Foreign Affairs. In the other direction, the embassy notes that German authorities do not yet fully recognise Saudi apostilles, so Saudi documents going to Germany may still need legalisation.
- Notarise private documents (resolutions, powers of attorney).
- Apostille each document.
- Translate everything into Arabic in the Kingdom, through a certified office, stamps included.
MISA’s guide still asks for the parent’s registration and financial statements certified by the Saudi Embassy, while the central bank has told banks the apostille replaces it. We confirm the route with MISA before the first document moves.
Tax between Germany and Saudi Arabia
Germany and Saudi Arabia have no comprehensive income tax treaty. The only agreement on the German Federal Ministry of Finance’s list covers air transport (signed 8 November 2007).
So Saudi domestic rates apply in full to payments to the parent: management fees 20%, royalties 15%, technical and consulting services 5%, dividends and branch remittances 5%, interest 5%, other services 15% (Income Tax Regulations, Art. 63).
Inside the Kingdom the entity pays 20% income tax on its profit (zakat instead on any Saudi or GCC share), and VAT at 15% once taxable supplies pass SAR 375,000.
What is the same for every foreign company
- Investment registration with MISA, decided within 10 working days of a complete file; there is no longer a licence to renew, only an annual update.
- A limited liability company has no statutory minimum capital; MISA sets floors for some activities, trading above all.
- Saudisation is set profession by profession, and new visas need at least a Medium Green band.
- The general manager’s residence permit sits on the critical path: the bank wants it within 90 days of opening the account.
- The commercial registration is confirmed every year; 90 days late suspends it and every licence on it.
The details are in the references: entity forms, government fees and questions.
See it for your company.
The readiness check applies these rules to your country, activity and plans, and names the longest pole in your file. No email.
Sources: hcch.net Apostille status table · the issuing authorities’ own pages · zatca.gov.sa Income Tax Regulations Art. 63 and treaty list · incometaxindia.gov.in · gov.uk · chinatax.gov.cn · impots.gouv.fr · bundesfinanzministerium.de · home.treasury.gov