If you are planning to live and work in Saudi Arabia, to get an Iqama residence visa is the first and most critical step. The Iqama is not just an identity card—it’s your legal foundation for staying in the Kingdom, enabling access to essential services such as healthcare, banking, housing, and employment rights.
For global companies interested in hiring in Saudi Arabia, understanding the Iqama process is equally important. Employers are responsible for sponsorship, compliance with labor laws, and timely renewals to keep their workforce legally employed. However, the application process can be challenging without the right knowledge or local expertise.
This 2025 guide explains the meaning of Iqama, the step-by-step application process, validity, costs, taxes, and common challenges. It also explores how employers and global teams can leverage Employer of Record (EOR) services to simplify compliance and hire talent in Saudi Arabia without setting up a local entity.
Table of Contents
- Meaning of Iqama in Saudi Arabia
- How to get an Iqama visa in Saudi Arabia
- How long is an Iqama visa valid?
- How much does it cost to get an Iqama visa?
- Iqama tax in Saudi Arabia
- Challenges of obtaining an Iqama residence visa in Saudi Arabia
- How Employers and EORs Help With Iqama Compliance
- Conclusion
- FAQs
Meaning of Iqama in Saudi Arabia
The Iqama is the official Saudi residence permit issued to foreign workers and dependents. It serves two main purposes:
- Proof of legal residency in Saudi Arabia.
- Authorization to work under a specific employer or sponsor.
Every expatriate in Saudi Arabia is required to carry a valid Iqama at all times. The card includes your photograph, employer’s name, job title, and personal identification number. Without it, you cannot open a bank account, register for utilities, or even rent accommodation.
For professionals relocating under an employment contract, the Iqama is tied directly to their sponsoring company. For family members, it is linked to the primary Iqama holder. This dual role makes the Iqama the most critical document for anyone planning on working or hiring in Saudi Arabia.
How to Get an Iqama visa in Saudi Arabia
The Iqama application process involves several stages, starting with the employer securing approval from Saudi government ministries. While expatriates play a role in providing documents and undergoing medical exams, the majority of the process is managed by the sponsoring employer.
Below is the step-by-step journey to get an Iqama in Saudi Arabia:
1. Apply for a block visa
The employer must apply for a block visa quota with the Ministry of Human Resources and Social Development (MHRSD). This quota specifies how many foreign workers a company can recruit, their job categories, and nationalities. Without an approved block visa, the company cannot initiate foreign recruitment.
2. Get a visa authorization number + power of attorney
Once the block visa is approved, the company applies for a visa authorization number. The employer must also prepare a power of attorney, enabling them or their representative to complete visa formalities on the worker’s behalf.
3. Apply for a work permit
With the visa authorization number, the employer submits a work permit application. This step allows the expatriate worker to apply for an entry visa from their home country’s Saudi embassy or consulate.
4. Enter Saudi Arabia to begin work
Once the entry visa is approved, the employee travels to Saudi Arabia. Upon arrival, they must report to their employer and begin the official onboarding process.
5. Submit Iqama and work permit application
The final step requires the employer to submit the Iqama residence permit application within 90 days of the employee’s arrival. This involves presenting medical test results, passport copies, and employment documentation. Once approved, the Iqama card is issued, granting the worker full residency and employment rights.
Suggested Read: EOR Saudi Arabia: A Detailed Guide 2025
How long is an Iqama visa valid?
An Iqama residence permit is generally valid for one year, though in certain cases, employers can apply for a two-year validity. Renewal is mandatory and must be completed before the Iqama’s expiration date. Employers are legally responsible for ensuring renewals are submitted on time to avoid penalties.
Failing to renew the Iqama can lead to fines of SAR 500 for the first delay, SAR 1000 for the second, and deportation after repeated noncompliance. Dependents’ Iqamas also expire along with the primary holder’s, making timely renewal critical for families.
For companies hiring in Saudi Arabia, planning renewals in advance is a best practice to maintain compliance and avoid interruptions in employee status.
How much does it cost to get an Iqama visa?
The cost of securing and maintaining an Iqama varies depending on the employee’s job role, employer size, and dependent family members.
Typical expenses include:
- Iqama issuance or renewal fee: SAR 600–1000 annually
- Work permit fees: SAR 100 per month (SAR 1200 per year)
- Health insurance (mandatory for employees and dependents)
- Medical test fees for new applicants
- Dependent sponsorship fees (covered separately)
Most employers cover the cost of employee Iqamas and work permits, while dependents’ fees are often paid by the worker. This cost structure makes understanding Saudi Arabia visa expenses essential for expatriates planning to relocate with families.
Here’s a breakdown:
| Cost Component | Approximate Fee (SAR) | Who Pays? | Notes |
| Iqama issuance/renewal fee | 600 – 1,000 per year | Employer | Mandatory for each employee |
| Work permit fee | 100 per month (1,200/year) | Employer | Paid annually to Ministry of Labor |
| Health insurance (mandatory) | 500 – 2,000 per year | Employer/Employee | Varies by insurance provider and coverage |
| Medical test for new employees | 200 – 500 (one-time) | Employer/Employee | Required before Iqama approval |
| Dependent levy (Iqama tax) | 400 per dependent/month | Employee | Paid monthly for spouse/children |
| Late renewal penalty | 500 first delay; 1,000 second | Employer/Employee | Higher penalties or deportation if ignored |
Tip: While employers cover most core expenses for employees, the dependent levy is the biggest recurring cost for expatriates with families.
Iqama tax in Saudi Arabia
One of the key financial considerations is the Iqama tax—a levy applied to expatriates and their dependents.
- Expat levy for companies: Employers pay SAR 400–800 per month per expatriate employee, depending on the ratio of Saudi to foreign workers in the company.
- Dependent tax: Each dependent (spouse or child) incurs a monthly fee of SAR 400. This can significantly increase living costs for expatriates with families.
For businesses, this tax structure incentivizes the hiring of Saudi nationals while still enabling foreign recruitment where specialized skills are needed. For employees, budgeting for the dependent levy is crucial when planning relocation.
Challenges of obtaining an Iqama residence visa in Saudi Arabia
Despite being mandatory, the Iqama application process is often considered complex. Both employers and expatriates face bureaucratic challenges and strict deadlines.
Iqama and work visa application is complex
The process requires coordination between multiple ministries, accurate documentation, and proper sequencing of steps. Any errors can lead to delays, rejection, or legal issues.
Noncompliance has severe consequences
Failure to comply with Iqama laws results in harsh penalties. Expired Iqamas can lead to fines, detention, deportation, and even a ban on re-entering Saudi Arabia.
Local sponsorship requires entity establishment
For foreign companies, sponsoring employees directly requires setting up a legal entity in Saudi Arabia—a costly and time-consuming process. Without an entity, employers cannot legally sponsor foreign workers, which makes hiring in Saudi Arabia challenging for international firms.
How Employers and EORs Help With Iqama Compliance
For global companies, navigating Saudi Arabia’s sponsorship laws can be overwhelming. This is where Employer of Record (EOR) solutions like Asanify step in to simplify the process.
Asanify EOR acts as the official employer of record in Saudi Arabia, sponsoring employees on your behalf while you maintain full operational control. This eliminates the need for setting up a local entity, saving both time and costs.
With Asanify, businesses can:
- Hire employees in Saudi Arabia without entity establishment
- Secure Iqama visas quickly and compliantly
- Manage renewals and avoid fines for expired permits
- Provide compliant payroll, taxation, and benefits administration
- Ensure smooth onboarding for expatriates and their dependents
For companies looking to hire in Saudi Arabia in 2025, partnering with Asanify ensures a fast, compliant, and cost-effective entry into the market.
Suggested Read: Labour Laws in Saudi Arabia (2025): A Complete Guide
Conclusion
The Iqama residence visa is central to life and work in Saudi Arabia, granting expatriates both legal residency and work authorization. While the process involves multiple steps—block visas, medical exams, work permits, and final approvals—it is manageable with the right partner.
For individuals, understanding costs, validity, and taxes helps in planning a smooth relocation. For businesses, using an Employer of Record like Asanify provides the fastest route to hiring in Saudi Arabia, ensuring compliance with local labor laws while avoiding the burden of entity setup.
In 2025, as Saudi Arabia continues to attract global talent and investment, mastering the Iqama process will remain essential for successful business operations and expatriate life.
FAQs
It’s a residence and work permit issued to expatriates for legal stay and employment.
Foreign employees sponsored by Saudi employers or dependents of valid Iqama holders.
Usually two to four weeks after completing medical checks and document submission.
Typically one year, with mandatory annual renewal.
Yes, spouses and children can be sponsored under the employee’s Iqama.
You may face fines, deportation, and restrictions on future employment.
SAR 600–1000 annually, plus insurance, medical, and dependent fees.
Yes, both expat levies for employers and monthly dependent taxes apply.
Yes, but it requires government approval and transfer of sponsorship.
Yes, Asanify manages sponsorship, payroll, renewals, and compliance for foreign employees in Saudi Arabia.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
