UAE Free Zone

[john2]

Hello, I've been reading this forum for days. I write from Spain.

A company and a bank account created in UAE Free Zone (RAC), is safe for the exchange of tax information? Ie will the UAE bank inform the Spanish authorities?
If it is a safe system, do you plan to make any changes, as has happened with offshore?

Thank you.

 

[john2]

No one can inform me?

 

[Internationaloff]

Do you mean without a residency in UAE?

 

[john2]

Right, residency in Spain

 

[mnschwarz]

A quick google search will provide the answer. UAE banks are due to begin sharing‌ details soon under the CRS obligations.

 

[Internationaloff]

I agree with @mnschwarz.
UAE will report to the Spanish tax authority from 2018‌ according to CRS.

 

[john2]

if I understand. But there are agencies that say "free zone" companies will not be‌ reported as offshroe. This is the question, if the bank accounts of a free zone‍ company would be reported.

thank you

 

[bronze]

If I understand correctly you can become a resident of UAE hence they report you‌ to UAE who then doesn't care

 

[john2]

No, I don't become a resident of UEA, I maintain my residence in Spain. But‌ they say they do not report data from "Free Zone" companies. Do you know if‍ this is correct?

 

[mnschwarz]

It includes the free zones. You're referring⁠ to resident companies being excluded - which you are not. The company, even incorporated in⁤ UAE, is managed and controlled by you. Thus it is not a resident company and⁣ your banking information reported to Spain under CRS.

 

[bronze]

You can also become a resident of UAE without effecting your Spanish residency

Then UAE‌ reports your financials to UAE and not spain

 

[john2]

ok, thanks all

 

[mnschwarz]

I believe‍ you can only obtain residency in UAE with employer sponsorship or by purchasing real estate⁠ valued over 1million AED. And while you can have multiple residencies, you can only claim⁤ one as your residency for tax purposes (legally anyway).

 

[DrKlau]

I just returned from UAE where I got my residence and UAE id, and⁤ setup a free zone company.
I am EU resident and citizen.
The bank I contacted⁣ to open my business account (Mashreq) did not seem to care about residency or id⁢ card but it also did not ask for my citizenship country utility bill.
Ofcourse when︀ and if the account is opened, before I transfer money there I will make sure︁ where they report and what.

 

[mnschwarz]

What were the requirements to obtain⁣ residency?

 

[DrKlau]

For UAQ company, residence and emirates id, I had to provide:
- passport
- personal‌ bank reference letter addressed to UAQ authority (I had no problem getting this)
- utility‍ bill (I sent a fake)
- 10 passport type pictures
Then after the company was⁠ formed I had to go to UAE for medical test. (Very easy x-ray and blood⁤ test and fingerprints).

I had a very nice guy (offshore provider) who helped me do⁣ all this and it all was very smooth.
However I think it was for nothing⁢ if UAE will be reporting also free zone entities.

 

[JohnLocke]

@DrKlau please name the provider it may be of interest for the rest of us‌ 😉

 

[DrKlau]

All right since I don't violate any forum rules.
Its called WAM (worldassets dot eu).‌ You can ask for Martin. He lives in Dubai.

I emphasize I have NO affiliation.‍

 

[Starlights]

I will contact them becasue i thinking do the same you did 🙂 any advice to‌ me before i do DKlau?

 

[DrKlau]

If you don't do the residence visa procedure that is a bit more complicated, the‌ procedure to form the company is fairly easy you just put some signatures in some‍ documents. Just be careful that some free zones (like RAK) want audited financial statements every⁠ year to renew the company's license and this can be complicated and costly.
The problem⁤ is that I am still not sure if having a residency card with a free⁣ trade zone company then the UAE banks will not report to your country's tax authorities.⁢
As much as I have researched this matter I still do not have a clear︀ answer. I have opened bank accounts in two UAE banks, Mashreq and NBD and funded︁ them, but as much as I asked the bankers there is no one who knows︂ for sure what will be reported.

I wish you the best starlights and you are︃ welcome to ask me anything, .