Before You Leave
Tax residency
Germany taxes you on worldwide income for as long as you have a Wohnsitz — any dwelling you keep available for your own use — or your gewöhnlicher Aufenthalt in Germany. Keeping your flat, even empty, can be enough to stay unbeschränkt steuerpflichtig, so most people give up their German home and complete the Abmeldung at the Bürgeramt. Germany and Saudi Arabia have no comprehensive double tax treaty, so there is no treaty tie-breaker to fall back on if your status is unclear — get it right on the facts. As a non-resident you are still taxed on German-source income such as rent, and a Wegzugsbesteuerung exit tax can apply if you hold 1% or more of a company. Take advice from a Steuerberater before you sign.
Home banking and credit cards
Keep at least one German account open for Lastschriften, a mortgage and emergency access, and tell your bank you are moving abroad; most will keep the account open for non-residents but may restrict Depot and investment products. Check foreign card fees, and make sure your online banking, ELSTER and Deutsche Rentenversicherung logins do not depend on a German mobile number or a TAN device you are about to lose.
Pensions and savings
There is no social security agreement between Germany and Saudi Arabia, so your Saudi years will not count towards the gesetzliche Rente unless you make freiwillige Beiträge to the Deutsche Rentenversicherung — which Germans abroad are entitled to do, and which is worth costing out. If you are seconded (entsandt) by a German employer for a limited period, Ausstrahlung may keep you in the German system; check with your HR. Your gesetzliche or private Krankenversicherung ends with the Abmeldung — ask about an Anwartschaftsversicherung so you can return to your insurer without a new health check. Riester subsidies may be clawed back once you are no longer resident; Rürup and company pensions can stay. Take advice before selling or restructuring investments.
Document legalisation
Confirm the exact chain with your Saudi employer before paying for anything. German degrees, marriage and birth certificates need an Apostille from the competent Landesbehörde (Regierungspräsidium, Landgericht or Innenministerium depending on the document and state), and university qualifications typically also need verification through the Saudi Cultural Bureau in Berlin. Request your Führungszeugnis from the Bundesamt für Justiz early and budget for beglaubigte Arabic translations once you arrive.
Pets and medical records
Pet exports need an amtliches Gesundheitszeugnis from the Veterinäramt plus Saudi import approval, microchipping and up-to-date rabies vaccination; the sequence takes months, so start early. Your Krankenkasse cover ends with the Abmeldung, so your employer's Saudi policy becomes your only cover — arrange an Anwartschaft if you want a clean return. Request copies of prescriptions, Impfpass, dental records and any specialist notes for each family member, and carry regular medication in original packaging with a doctor's letter.
Visas & Documents
German citizens relocating for work need an employer-sponsored Work Visa. Your employer starts the process in Saudi Arabia; you then complete a medical examination at an approved clinic, obtain a Führungszeugnis, and have your qualifications apostilled and, for degrees, verified through the Saudi Cultural Bureau in Berlin — before the visa is issued by the Saudi embassy in Berlin or a consulate. Healthcare professionals also need Saudi Commission for Health Specialties (SCFHS) classification and the Prometric exam, which your employer or recruiter will coordinate.
Once you arrive, your employer will arrange your Iqama (residency permit). The Iqama is your essential ID card, needed to open a bank account, rent a home, get a SIM card and set up utilities — think of it as your Personalausweis, Aufenthaltstitel and Meldebescheinigung in one. Keep a photo of it on your phone.
Employment & Contracts
German professionals in Saudi Arabia are concentrated in engineering and plant construction, chemicals, energy and hydrogen, automotive, rail, medical technology, consulting and higher education, and most arrive on packages that bundle a base salary with housing (or a housing allowance), medical insurance, annual flights home and, for families, an education allowance that often covers the Deutsche Schule. Check carefully whether you are on a local Saudi contract or an Entsendung from a German employer — the tax, social security and pension consequences are very different, and a German secondment may keep you in the German system.
There is no personal income tax in Saudi Arabia, which is the single biggest change to your take-home pay compared with Lohnsteuer plus Sozialabgaben. There is no employer pension or Krankenkasse contribution; instead you accrue an end-of-service benefit (ESB), typically half a month's salary per year for the first five years and a full month per year thereafter, paid when you leave. Annual leave is usually 21–30 days rather than the German 30 working days, contracts are generally fixed-term and renewable, and the working week is Sunday to Thursday.
Housing & Neighbourhoods
Most expats choose between a home in a residential compound and an apartment or villa "on the economy" — the commonly used expat term for living outside a compound. Compounds offer an easier first landing and built-in community, while living on the economy usually gives you more choice, better value and a closer connection to the city around you.
Rents are quoted annually and are usually paid in one or two instalments up front. Residential leases must be registered through Ejar. Many employers provide accommodation or pay a housing allowance, so check exactly what your employment contract includes before deciding where and how to rent.
Compounds: the easy landing
When you are new, compounds can make settling in much easier. They commonly provide gated security, pools, gyms, tennis courts, playgrounds, cafés and often a shop or restaurant on site. You also gain an immediate social circle of other expats, school-bus pick-ups, a more relaxed dress code inside the walls and maintenance handled for you.
The trade-off is price: compounds often cost 30–60% more than an equivalent villa or apartment outside, and the most popular developments can have waiting lists. Many arrivals spend their first year or two in a compound and then move out once they understand the city and their preferred commute.
Compound prices are normally quoted per year. Villas in the leading Riyadh compounds can run well into six figures in SAR annually.
Living outside a compound
Living outside a compound is generally cheaper, gives you a wider choice of homes and puts you closer to the everyday life of the city. Expat-oriented apartment buildings and smaller "mini compounds" are also available in many popular districts.
Riyadh: Al Olaya, Al Malqa, Hittin, Al Narjis, Al Sahafa, Diplomatic Quarter (DQ).
Jeddah: Al Shati, Al Rawdah, Al Hamra, Al Salamah, Al Zahra.
Eastern Province: Al Rakah and Al Aqrabiyah (Khobar), Dhahran, Al Shati (Dammam).
Popular compounds
Riyadh
- Al Nakhla Residential Resort
- Kingdom City
- Arizona Golf Resort
- Cordoba Oasis Village
- Al Hamra Oasis Village
- Ranco Village
- Seder Village
- Ishbilia Village
- Rawabi Pearl
- Arcadia Residential Compound
Jeddah
- Sharbatly Village
- Arabian Homes
- Basateen Village
- Al Basateen Compound
- Midtown Khalidiyyah
Eastern Province
- Eurovillage
- Dana Compound
- Nada Compound
- Zamil Village
- Al Ansari Compound
- Dhahran Hills (Aramco housing — employees only)
This isn't a ranking — availability changes constantly, and the right compound depends on where you work and which school you've chosen.
Browse more compounds on RightCompound.
Practical tips
- View the property before you sign if at all possible.
- Ask your employer's HR team which compounds colleagues use.
- Check commute times to the office and school at 7:30am, not on a weekend.
Healthcare System
Your employer is legally required to provide private medical insurance for you and your sponsored dependants. Private healthcare in the major cities is excellent, with modern hospitals and English-speaking staff widely available; German-speaking doctors exist but are rare, so be comfortable with medical English.
Check your policy's coverage class, network hospitals and co-payments before you need them — Saudi policies are tiered in a way German Krankenkassen are not. Your GKV or PKV cover ends with the Abmeldung, so your employer's policy — or a top-up international plan — is your only cover; an Anwartschaftsversicherung keeps the door open for a return. Bring enough of any regular medication to last until you have found a local doctor, with a supporting letter and the original packaging.
Banking & FX
Which bank to open
In our experience SAB is the most straightforward Saudi bank for expats who want to send money home via a licensed FX provider like SummitFX. Some other banks restrict or delay third-party international payments, which can lock you into their own exchange rates.
SNB, Al Rajhi and Riyad Bank are widely used alternatives; compare their account requirements, transfer controls and published charges before choosing.
What using a specialist FX provider saves you
German and Saudi banks typically build a 2–3% margin into their exchange rate on top of any transfer fee. A specialist FX provider like SummitFX works from the live interbank rate, so on most transfers you keep the majority of that 2–3% yourself.
- Arriving: Rent is usually paid 6–12 months up front, so many new arrivals send a large lump sum from Germany to cover the first year. On a SAR 60,000 annual rent (about €14,000), a 2–3% bank margin costs you €280–€420 before you've unpacked.
- Every month after that: Most German expats send part of their tax-free salary home for a Baufinanzierung, freiwillige Rentenbeiträge, savings or family. On a monthly transfer of SAR 20,000 (about €4,700), the same margin is €90–€140 a month — €1,150–€1,700 a year, every year you're in the Kingdom.
Whether you are paying a Baufinanzierung, making freiwillige Rentenbeiträge, supporting family or simply building savings in euros, sending money via your Saudi bank's app exposes you to a wide EUR/SAR spread. SummitFX quotes from the live interbank rate and can deliver euros to your German account the same day via SEPA. Check the live EUR/SAR rate.
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Get a live SAR quoteDriving & Transport
Driving is the default way to get around — there is no S-Bahn to fall back on — although the Riyadh Metro, built in part by a Siemens-led consortium, is changing that in the capital. German licences are generally accepted for conversion to a Saudi licence without a full driving test, subject to an eye test, an authorised translation and the usual paperwork once you have your Iqama — but the eligible-country list is reviewed periodically, so confirm the current rule with your employer's government-relations (PRO) team. You'll be driving on the right, as at home, but with a 120 km/h ceiling and traffic that is faster and less forgiving than the Autobahn's rules suggest.
Uber and Careem are everywhere and are a reliable option while you wait for your licence. Most expats buy or lease a car within the first few months; bank leasing is common, German brands are everywhere, and petrol is a fraction of German prices.
Schools & Family Life
Germany is one of the few countries with its own schools in Saudi Arabia. The Deutsche Internationale Schule Riad and the Deutsche Internationale Schule Jeddah were both founded in 1975 and are recognised Deutsche Auslandsschulen under ZfA supervision, teaching the German curriculum from Kindergarten through the Sekundarstufe; Riyadh now offers the Gemischtsprachiges International Baccalaureate (GIB) at upper-secondary level, which gives direct access to German and international universities. Fees are well below British and American international schools. Families who prefer an anglophone education still have the British, American and IB schools to choose from, all of which are recognised for German university entry via anabin.
Secure a place before you sign your contract if you can — the German schools are small and the popular international schools have long waiting lists — and note that the academic year starts in late August or early September rather than after the Sommerferien, which can mean a child repeating or skipping half a year. Family life revolves around the compound, school and a rapidly growing entertainment scene of cinemas, theme parks and international sport.
German schools abroad (Deutsche Auslandsschulen) and international alternatives
Riyadh
- Deutsche Internationale Schule Riad (DISR)
- British International School Riyadh (BISR)
- American International School Riyadh (AIS-R)
Jeddah
Eastern Province
- British International School Al Khobar
- International Schools Group (ISG) — Dhahran, Dammam and Jubail
Waiting lists can be long, particularly for popular year groups, so contact schools and apply as early as possible.
Culture & Daily Life
Saudi Arabia is a conservative Islamic country and understanding local customs matters. Prayer times shape the day, modest dress (shoulders and knees covered) is expected in public, and although the abaya is no longer legally required for expat women, most dress conservatively outside compounds. Alcohol is not available and there are no bars or Biergärten — for many Germans that, and the absence of proper bread and Wurst, is a bigger adjustment than the heat. German directness benefits from a little softening: indirectness is a courtesy here, not evasion, and Pünktlichkeit is aspirational rather than assumed.
The weekend is Friday and Saturday, and Riyadh is only one to two hours ahead of Berlin, so keeping in touch with family is easy. Summers are long and hot — Riyadh regularly passes 45°C, though it is a dry heat, and Jeddah and the Eastern Province are humid — while winters are mild and sunny. German engineering and cars are held in high regard here, and learning some Arabic on top of that goodwill will transform your experience.
Community & Support
Germany has a long-standing and well-organised presence in Saudi Arabia — engineering, chemicals, automotive, energy and hydrogen, rail, medical technology and construction firms have been here for decades, and the two German schools have been running since 1975. Most people find their circle through the schools, compound life, the Delegation der Deutschen Wirtschaft (AHK) events, football and cycling clubs, and embassy occasions such as the Tag der Deutschen Einheit reception. Register in the Krisenvorsorgeliste (ELEFAND) with the Auswärtiges Amt when you arrive so the embassy can reach you.
Facebook groups
- Germans in Saudi Arabia (Deutsche in Saudi-Arabien): Ask the German Embassy and established local expat groups for current German community contacts
- City expat groups — Riyadh, Jeddah and Khobar: Expats in Riyadh (Saudi Arabia)
- City expat groups — Riyadh, Jeddah and Khobar: The Expats Club – Riyadh
- City expat groups — Riyadh, Jeddah and Khobar: Jeddah Expatriates
- City expat groups — Riyadh, Jeddah and Khobar: Expats Jeddah For All
- City expat groups — Riyadh, Jeddah and Khobar: Expatriates in Al Khobar
- Parents and school groups: Most school and parent groups are private WhatsApp groups — ask your school's Sekretariat or Elternvertreter for an invite
Podcasts & resources
Arrival Checklist
In your first few weeks, get your Iqama processed through your employer's HR team — everything else depends on it. Then open a local bank account, buy a SIM card (STC, Mobily or Zain), install the Absher and Tawakkalna apps, and register your address on the National Address (SPL) system.
Register in the Auswärtiges Amt's Krisenvorsorgeliste (ELEFAND) and note the German Embassy in Riyadh and Consulate General in Jeddah as your consular contacts. Set up your money route home early — decide which Saudi bank and which FX provider you will use before your first salary lands — and start exploring your neighbourhood and the German and wider expat networks.
Cost of Living: Saudi Arabia vs Germany
| Item | Cost in Saudi Arabia | Saudi cost in EUR | Typical cost in Berlin |
|---|---|---|---|
| Rent (1-bed apartment, good area) | 4,500 SAR | — | EUR 1,300 |
| Groceries (monthly for 1) | 1,400 SAR | — | EUR 300 |
| Utilities (monthly, incl. Nebenkosten and electricity) | 500 SAR | — | EUR 250 |
| Meal at mid-range restaurant | 120 SAR | — | EUR 20 |
| Petrol (1 litre) | 2.33 SAR | — | EUR 1.8 |
| German school abroad / international school fees (per year) | 45,000 SAR | — | EUR 15,000 |
| Gym membership (monthly) | 300 SAR | — | EUR 40 |
| Coffee (cappuccino) | 20 SAR | — | EUR 3.5 |
| Mobile plan (monthly) | 120 SAR | — | EUR 20 |
| Cleaner (4 hours per week, monthly) | 800 SAR | — | EUR 260 |
| Car insurance (annual) | 2,500 SAR | — | EUR 700 |
Note: Costs are indicative and vary based on lifestyle, neighbourhood, and inflation.
Frequently Asked Questions
Saudi Arabia does not levy personal income tax. Whether Germany taxes your Saudi salary depends on whether you keep a Wohnsitz or gewöhnlicher Aufenthalt in Germany: give up your German home and complete the Abmeldung and your Saudi salary is outside German tax, though German-source income such as rent is still taxed. Keep a flat available for your own use and you may remain fully taxable in Germany — and because Germany and Saudi Arabia have no comprehensive double tax treaty, there is no treaty tie-breaker to rescue you. Get advice from a Steuerberater before you leave.
There is no social security agreement, so your Saudi years do not count towards the gesetzliche Rente unless you make freiwillige Beiträge to the Deutsche Rentenversicherung, which you are entitled to do from abroad. Your GKV or PKV ends with the Abmeldung; an Anwartschaftsversicherung lets you return to your insurer later without a new health check. If you are seconded by a German employer, Ausstrahlung may keep you in the German system — check with HR.
No. The riyal (SAR) is pegged to the US dollar at 3.75, so the EUR/SAR rate simply follows EUR/USD. When the euro weakens against the dollar, your Saudi salary is worth more in euros.
For anything above a few thousand euros, a specialist FX provider like SummitFX will usually beat a bank on the rate — often by 2–3% — with same-day delivery to your German account via SEPA. Open a Saudi bank account that supports payments to third-party FX providers (SAB, in our experience) so you aren't limited to your bank's own rate.
It is no longer legally required for expat women. Modest dress — shoulders and knees covered — is expected in public, and many women still wear an abaya or loose clothing outside compounds for comfort and convenience.
The Iqama is your Saudi residency permit and ID card, issued through your employer. You need it to open a bank account, rent a home, get a SIM, sponsor dependants and convert your driving licence.
Foreign ownership is being opened up gradually but is still limited to specific circumstances and designated zones, and most expats rent. Rent is normally paid annually or half-yearly in advance, so budget for a large upfront payment in your first month.
Yes — the Deutsche Internationale Schule Riad and Deutsche Internationale Schule Jeddah are recognised German schools abroad teaching the German curriculum from Kindergarten upwards, with Riyadh offering the GIB at upper-secondary level for university entry. Both are small, so apply early; the British, American and IB schools are the alternatives.
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