Investing from Saudi Arabia
Last updated 18 October 2026 · By Pradeep Kumar, India Solar
In short:
an investor from Saudi Arabia can buy the Indian company that owns an operating solar plant under India's automatic foreign-investment route. India withholds
5%
tax on dividends paid to investors from Saudi Arabia who give a tax residency certificate and Form 10F. Lowest treaty dividend rate among our markets.
Your home-country rules
- No exchange controls on outbound investment.
- Saudi-owned companies pay Zakat at 2.5% of the zakat base; how foreign shareholdings are treated should be confirmed with your Zakat adviser.
- Individuals pay no personal income tax.
Tax treaty and legal protection
- India–Saudi tax treaty: 5% Indian withholding on dividends and 10% on interest.
- A new bilateral investment treaty is under negotiation and not yet signed.
Documents you will need
- Commercial registration or national ID
- Tax residency certificate and Form 10F
- Beneficial owner list and source of funds
How we work with investors from Saudi Arabia
- Equity is structured on profit-and-loss sharing lines suited to Sharia review (musharaka).
- Offers to Saudi residents go through a CMA-authorised arranger.
Related guides
- Tax on dividends from Indian solar companies, by country
- FDI rules for foreign buyers of Indian solar plants
- Buying an operating solar plant in India
Sources
Information as of October 2026. General information only, not tax or legal advice; rules change and depend on your circumstances.