Goodbye to Dubai and all UAE Banks friendliness?

[Martin Everson]

Thank you. Someone that actually gets it thu&¤#

Point 2 will come as a shock soon to︀ some people. Been saying this for years on here. But like I always say people︁ are gonna learn the hard way.

 

[Golden Fleece]

Yes, this⁠ is why it is best just to live in a low-tax country and pay some⁤ reasonable amount of tax -- and to also have multiple residencies and bank accounts, because⁣ things can change with little notice. Just look at all the retirees forced to leave⁢ Ireland when it arbitrarily raised the minimum pension income to 50,000 Euros with no explanation.︀

 

[kingx321]

Thank you for your answer!

If i get a residence visa through an onshore︄ Dubai Company, do i have to live in Dubai or stay there a certain amount︅ of time?

 

[Fred]

To keep the Residence Visa active you are required⁠ to be every 6 months for at least one day in the UAE.

You are⁤ all good if you come 2 days per year to the UAE.

Of course you⁣ need a reliable partner like us that works banking out for you.

 

[BlueMist]

I don't think you can get tax residence certificate⁠ from authorities for being just 2 days in a year!
The following documents must be⁤ attached:
- A copy of the passport + valid permit of residence
- A copy⁣ of ID card
- A certified copy of (residential) lease agreement
- Validated 6-month bank⁢ statement from a local bank
- Source of income/Salary certificate
- A report from the︀ General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has︁ stayed in the UAE

 

[Fred]

Just from practice experience they issue the certificate without staying 183+ days⁢ in the UAE.

However you are right that are the official requirements and it looks︀ like they don't enforce them.

I think @Gediminas and @CaptK already mentioned that they made︁ similar experience when it comes to the days of stay within the UAE and getting︂ the tax residence certificate.

Don't want to motivate anybody to not follow what the GoV︃ is mentioning public but to keep it fair I need to mention that we have︄ plenty of examples with a shorter stay then 183+ days in the UAE.

However you︅ definitely need Personal Bank Statement, Emirates ID and Residence Visa in Passport but for everything︆ else it seems they don't take it that much serious.

 

[Konstanz]

Everything works fine︂ until you have official investigation by your home country.
Many things can happen. They can︃ send official request to UAE to confirm if you really live there and they find︄ out that your home address is fake.
They can get bank statements and see you︅ don't spend money in UAE and your home country can claim your UAE residence is︆ domicilation fraud to evade tax.
From UAE prospective everything in nice and easy.
Any introducer︇ like you, should inform their clients about possible risks if they don't live in UAE︈ and claim tax residence

 

[Fred]

Yes as a Dubai Expat living fulltime in the⁣ UAE I can always only mention the side of the UAE.

Still I see what⁢ people do in practice and how they get away with it.

As soon as this︀ changes I will update all of you guys for sure - no question.

 

[CaptK]

Just to add︂ you need to pay yourself from the business account to your personal account, by way︃ of dividend or salary.
It has to make senses and you should still behave how︄ a normal person would with regards to business money and personal money

 

[glengoolie]

i think personal taxes are never the problem. most rich folk get money⁠ through dividends anyway. but coming from EUrope, the problem is always healthcare and social security⁤ and that together takes 50% of your income right away, just like that, puff, it's⁣ gone. i say they can get effd.

 

[Sols]

This thread is in the Offshore Company category and is about AML compliance/goAML and tax‌ matters in UAE.

The UAE lifestyle discussion is interesting, and can be continued here (some‍ posts moved over): Life in UAE advantages & disadvantages

 

[Michaelpitt]

I have UAQ⁤ FZ license and investor visa with the shiny flexi desk office.

Banks hate it and⁣ I am not able to get a bank account, neither personal (new ones are not⁢ possible, but I got one personal bank account from ENBD 2 years ago) nor a︀ business bank account. How can I get a bank account? I am into the ecommerce︁ space, no shady activity.

 

[Fred]

E-Commerce with Flexi⁣ Desk is considered high risk by all UAE banks nowadays. UAQ additional redflag.

Reach out⁢ via Mail to [email protected] or via Messenger on www.dls-dubai.com and send us some more detailed︀ information and we check for you if it's possible to get you a Business Bank︁ Account with this setup.

 

[Michaelpitt]

What FZ with⁠ Ecommerce activity is not a red flag? All of the FZ offer flexi desk only,⁤ or am I missing something?

 

[troubled soul]

True , Very⁠ Easy to doing money laundering with E-Commerce, That's why Bank takes cautions.

Which Business Categories⁤ are good with Flexi Desk ? And bank easily accept it ?
Can you give⁣ the categories, It will Help.

Thanks.

 

[petal355]

You said otherwise on your message of 28 march, you⁤ mentionned about qualifying to the tax residence in UAE and obtaining the certificate if your⁣ company is not active (without bank, activity, thus without uae sourced salary as its what⁢ happened to many) :
I quote your 28 march message : "So long as you︀ satisfy the time period you are automatically entitled to it."

I couldnt find testimonies whether︁ people could fully secure and qualify their physical person tax residence in Uae in case︂ their company wouldnt be used, for example if they have no bank account access, under︃ a fake unused activity to behave as a mere visa provider for the physical person.︄

I was wondering, in case you dont have a work but are a mere trader,︅ is it possible to buy a company that runs in uae and would grant you︆ a director salary to secure your residence better than creating a dormant or fake activity︇ ?
What price would it cost ? Im thinking buying a low cost hairdresser salon︈ or whatever, lets say for 30k cash?

 

[234628725]

I'm not an expert, apologies if I am︆ wrong.

I assume that you want to become non-resident in a high tax country by︇ moving your centre of life to UAE.

Get familiar with law in that country. No︈ certificate from UAE will save you. Under hypothetical investigation in your home country, it will︉ become clear how much time you spent here and there. To stay safe aim for︊ 183+ days/year in UAE, at least at the beginning. You don't need a job or︋ residency certificate to be tax resident in UAE and/or to have centre of life in︌ UAE.

Rather than buying a hairdresser salon, consider buying a cheap flat in UAE. It︍ will be a better indicator confirming that your centre of life is in UAE.

You can be considered tax resident in more than one country if you don't cut ties︎ to your home country.

 

[Konstanz]

It depends. Let's say home country has DTA agreement with UAE. It's enough︃ to show that you don't have address/residence in home country, but you have permanent home︄ address in UAE. However, if they check and see that you don't live in UAE,︅ so the question were you live will arise. They can still say that it's domicilation︆ fraud to avoid tax despite of DTA agreement. Everything depends on how much your home︇ country is interested to tax you. If you have centre of life in UAE and︈ stay some decent time there you should be fine.
As said having apartment in UAE︉ would show some decent substance of residence.

 

[Golden Fleece]

Another possibility is entering into a long-term lease that you can show‍ your home country. Perhaps pay someone $200 to $400 per month for the use of⁠ their extra bedroom, with their knowledge that you will only visit a few times a⁤ year. That is like free money for them.

So, for less than $5,000 per year⁣ you have a long-term lease as proof of residency. Perhaps you could also join some⁢ local clubs and organizations as additional proof of ties to the country, along with a︀ local driver's license. And if you use a second passport for most of your travels,︁ your home country passport would only show a few travel stamps.

 

[Konstanz]

You can but they see its 200$ rent agreement in UAE. They will understand that you︁ don't live there