Premium Iqama in Saudi Arabia: Everything You Need to Know About Finances and Expenses

Premium Iqama represents a unique opportunity for foreign citizens to reside in Saudi Arabia on a long-term basis without the necessity of sponsorship. However, this status is connected to significant financial obligations, which require careful planning. In our article, we, in detail, will discuss all types of costs, as well as we will offer methods of their minimization in order to help you optimally manage your budget. Learn more about premium Iqama Saudi Arabia and its advantages.

Magnificent opportunities for significant sum: Premium Iqama and main financial obligations

The first and main direct expense is itself the cost of premium Iqama. As of the current moment, processing of this visa requires significant investments. Depending on the chosen type — annual renewal or permanent status — price can substantially vary. For example, renewal can cost about $10,000 annually, and permanent residence can cost $100,000 one-time. Besides that, considering current procedures, it is necessary to pay administrative fees and additional payments for document processing. Cumulative costs become a noticeable expense. However, they provide the owners with a number of advantages, such as conducting business, acquiring real estate, and free movement.

Indirect costs and hidden expenses: How to avoid unexpected expenses

Despite obvious benefits, there exist many hidden costs. For example, tax policy in Saudi Arabia prescribes payment of value-added tax (VAT) in the amount of 15%, which can significantly increase the cost of everyday goods and services. Also obligatory is the acquisition of medical insurance, which can cost from $1,000 to $5,000 per year, depending on the level of coverage. One cannot forget also about government fees for services, such as renewal of driver’s license or obtaining of work permits, which in total constitute a substantial sum. For example, the fee for renewal of a driver’s license can constitute $100 annually. More details about taxes can be learned here on taxation in Saudi Arabia.

How expenses for Iqama influence the quality of life and stay in Saudi Arabia

Financial obligations connected with premium Iqama require a careful approach, as they can significantly reduce available funds. Incorrect budget calculation can lead to a reduction in quality of life or the impossibility of saving for the future. However, the status of premium Iqama also opens economic prospects, such as conducting successful business in the local market, which is especially important for those working in the oil industry, where average incomes can constitute $20,000 per month. Ownership of real estate also contributes to the preservation and increase of capital. Additional information about conducting business in Saudi Arabia can be found here.

One successful case: Story of foreign resident

Let’s present an example of a successful resident who used premium Iqama to open a business. Initial expenses were high: $100,000 for a permanent visa and taxes on the import of equipment. However, thanks to the absence of sponsorship expenses and the high demand for his products, the company has already started to make a profit after a year. Turnover constituted $500,000, which helped to compensate for costs already in the second year of work.

Effective financial planning: Useful recommendations for owners of premium Iqama

• Compose a detailed budget, taking into account all possible expenses and fees.
• Consult with financial specialists, especially those who have experience in working with a market in Saudi Arabia.
• Consider long-term investments in the local economy, such as real estate, business, or shares, which will provide additional income and preservation of capital.
• Necessarily acquire medical insurance with advantageous conditions for minimization of medical expenses.

Premium Iqama opens significant opportunities for foreign residents in Saudi Arabia, nevertheless, it requires competent financial planning and accounting of all expenses. Correct approach and strategy will be able to minimize negative impact of costs on your budget, allowing you in full measure to use all provided advantages.