There is a myth about Saudi Arabia that has existed for decades: "You move there, you pay zero tax, everything is cheap, and you leave a millionaire in two years."
In 2026, that story is... complicated.
Yes, there is still 0% Personal Income Tax. You keep every Riyal you earn from your salary. But life in the Kingdom has changed. With the introduction of 15% VAT, the removal of fuel subsidies, and the rapid gentrification of cities like Riyadh and Jeddah, your wallet can feel the squeeze if you aren't careful.
I have tracked my expenses down to the Halala. Whether you are a single engineer coming for a project or a family moving for the long haul, here is the honest, unvarnished truth about what it costs to live a "good" life in KSA today.
1. Housing: The "Riyadh Premium"
In 2023, rents in Riyadh exploded. In 2026, they have stabilized, but they are still high compared to 5 years ago. Your rent will be your biggest expense, and it depends entirely on one choice: Compound or Apartment?
Option A: The Western Compound
Compounds are gated communities with high walls, security, pools, gyms, and often strict "Western" rules (easier dress codes, mixing allowed). They are a "bubble" of comfort.
Cost: Astronomical.
1-Bedroom: 80,000 – 120,000 SAR / year ($21k - $32k).
3-Bedroom Villa: 180,000 – 300,000+ SAR / year.
Verdict: Only feasible if your company pays for it or gives you a massive housing allowance.
Option B: Independent Apartments
This is how 90% of expats (and locals) live. You rent an apartment in a regular building.
North Riyadh (The "Golden" Zone): Areas like Al Malqa, Alyasmin, Hittin.
1-Bedroom (Modern): 45,000 – 65,000 SAR / year.
3-Bedroom Floor: 70,000 – 95,000 SAR / year.
East/South Riyadh (The Budget Zone): Areas like Al Rawdah, Al Aziziyah.
2-Bedroom (Older building): 25,000 – 35,000 SAR / year.
⚠️ The Hidden Housing Costs:
Agent Fee (Sa’ee): You must pay 2.5% of the annual rent to the real estate office immediately.
Water Fee: Usually fixed at 500-1,000 SAR per year.
Payment Terms: Landlords often demand rent in 1 or 2 payments (cheques). Monthly payments are becoming more common via the Ejar digital platform, but "One Shot" payments still get you a discount.
2. Groceries: Carrefour vs. Tamimi
Food prices in Saudi Arabia are a tale of two cities. You can eat incredibly cheaply, or you can spend a fortune. It depends entirely on where you push your cart.
The "High End" (Tamimi Markets, Danube, Manuel)
These supermarkets stock American/European imports. If you want Kerrygold butter, Cheetos, organic kale, and specialized gluten-free pasta, you shop here.
Weekly Shop for 1 person: 600 – 900 SAR.
Price Check: A box of imported cereal might be 35 SAR ($9).
The "Smart Shopper" (Lulu, Panda, Othaim, Carrefour)
This is where the locals shop. The quality is excellent, especially for local produce.
Weekly Shop for 1 person: 300 – 450 SAR.
Milk (Almarai/Nadec): ~6 SAR for 1 liter.
Bread (Khubz): 1 SAR for a bag of 6 big flatbreads (government subsidized).
Chicken (Fresh, whole): 16 – 19 SAR.
Rice (5kg bag): 35 – 50 SAR.
Pro Tip: Buy local. Saudi dairy is world-class. Local vegetables (cucumbers, tomatoes, eggplant) are dirt cheap. If you buy strawberries flown in from California, you will go broke.
3. The "Dependent Fee" (The Family Tax)
If you are moving alone, skip this section. If you are bringing a wife and children, read this carefully.
The Saudi government charges a monthly levy for every dependent under your sponsorship.
Cost: 400 SAR per person, per month.
The Math: If you have a wife and 2 kids (3 dependents):
3 people x 400 SAR = 1,200 SAR / month.
Total Annual Cost: 14,400 SAR ($3,800).
You usually have to pay this upfront when renewing your Iqama (residency ID). Many companies used to pay this for employees; now, fewer companies do. Negotiate this in your contract.
4. Schooling: The Silent Wallet Killer
If you have children, this will likely be your second biggest expense after rent. Public Saudi schools are generally for citizens. Expats send their kids to International Schools.
Top Tier (American/British Curriculum): 60,000 – 100,000 SAR per child/year.
Mid Tier (Indian/Pakistani/Filipino Schools): 15,000 – 30,000 SAR per child/year.
Waiting Lists: The good schools are full. You often need to pay a "Seat Reservation Fee" months in advance.
5. Utilities & Internet
Electricity: Saudi Arabia is hot. In August, your AC will run 24/7.
Winter Bill: 100 – 200 SAR.
Summer Bill: 500 – 900 SAR (for a standard apartment).
Mobile (STC / Mobily / Zain):
Data is fast (5G is everywhere).
A good prepaid plan (25GB Data + Social Media + Calls): 115 – 170 SAR / month.
Home Internet (Fiber/5G):
Fiber Optic (Unlimited): 250 – 400 SAR / month.
5G Router (Portable): 200 – 350 SAR / month.
6. Transport: Purchase vs. Lease vs. Uber
Public transport (The Riyadh Metro and Bus) is finally opening up, but KSA is still a car-centric country.
Fuel (Petrol 91): It is still cheap compared to Europe/USA, but not "free" like the old days.
Filling a Sedan (Toyota Corolla): ~80 – 95 SAR.
Filling an SUV (Tahoe/Land Cruiser): ~200+ SAR.
Car Installments: Buying a car is easy.
Mid-size Sedan (Hyundai Elantra/Toyota Camry): Monthly installment of 1,400 – 1,900 SAR.
Insurance: Mandatory. Ranges from 800 SAR (Third Party) to 4,000+ SAR (Full Comprehensive) per year.
Ride Hailing (Uber/Careem/Jeeny):
Short trip (10-15 mins): 18 – 25 SAR.
Commute (30+ mins): 50 – 80 SAR.
Verdict: If you commute daily, buy a car. Uber will cost you 3,000+ SAR/month.
7. Lifestyle & Entertainment (The Fun Budget)
You moved here to work, but you need to live, too.
Coffee Culture: This is huge. A Latte or V60 at a trendy spot like "Camel Step" or "Elixir" costs 18 – 26 SAR.
Dining Out:
Fast Food (McDonalds/Al Baik): 20 – 30 SAR.
Casual Dining (Cheesecake Factory/PF Changs): 100 – 150 SAR per person.
Luxury Dining (Nobu/Cipriani): 600+ SAR per person.
Gym Membership: Expensive.
Fitness Time (Standard): ~400 SAR/month.
PureGym: ~200 SAR/month.
The Bottom Line: Three Real-World Budgets
To help you visualize, here are three realistic monthly budgets for 2026.
Profile 1: The Single Engineer (Modest Living)
Goal: Save maximum cash.
Rent: 2,500 SAR (Shared flat or studio in East Riyadh)
Transport: 1,500 SAR (Used car + fuel)
Food: 1,000 SAR (Cooking at home + Al Baik occasionally)
Utilities/Net: 400 SAR
Misc: 500 SAR
Total Monthly Cost: ~5,900 SAR ($1,570)
Verdict: If you earn 12k, you save 50%.
Profile 2: The Professional Couple (Good Life)
Goal: Comfort and travel.
Rent: 5,500 SAR (Nice 2-Bedroom in North Riyadh)
Transport: 2,500 SAR (Leased SUV)
Food: 3,000 SAR (Tamimi shopping + Weekend dinners)
Utilities/Net: 700 SAR
Entertainment: 2,000 SAR
Total Monthly Cost: ~13,700 SAR ($3,650)
Profile 3: The Family of Four (The Full Package)
Goal: Stability and Schooling.
Rent: 7,000 SAR (Large apartment or small villa floor)
Schooling: 5,000 SAR (Averaged monthly for 2 kids in mid-tier school)
Dependent Fees: 1,200 SAR (Wife + 2 kids)
Transport: 3,000 SAR (2 Cars)
Food: 4,000 SAR
Utilities/Net: 1,000 SAR
Maid Service: 2,500 SAR (Full time)
Total Monthly Cost: ~23,700 SAR ($6,300)
Final Verdict
Saudi Arabia is no longer a "cheap" hardship post. It is a modern G20 economy with prices to match. However, the math still works in your favor because of Tax-Free Income.
If you are disciplined, cook at home, and avoid the luxury traps, you can build significant wealth here. Just don't expect to live like a King on a pauper's budget.
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