Not sure why you quoted point 1 as your not a UAE national right? So it does not apply to you. So point 2 is irrelevant as it applies by reason of meeting point 1 🙄.
UAE unveils tax residency criteria
- Thread starter Martin Everson
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Yup...but no worries this is a good debate on the topic. Do things properly and 99.9% of people will be fine.
I don't see that being a uae national is a requirement for point 1, I see point 1 as more as what it is in UE countries, where you are considered resident if you have the center of your personal and/or economic interests in dubai and you are resident of Dubai.
A good example is that if you have wife and kids in︀ europe, you can spend 365 days in Dubai, but when you re enter the country,︁ you will be taxed as the center of personal interest was the EU country. This︂ happened for lots of soccer players who went to dubai to play but had family︃ in EU. Same would apply for dubai, if you stay in dubai less than 90︄ days because your work requires travelling abroad but you have your family in dubai and︅ you have true business in dubai, you will be considered a tax resident in dubai,︆ which could mean nothing if you also trigger residency in other places. It all depends︇ on what your business is and how it is structured.
As often discussed, as a︈ digital nomad, the most important thing is how you exit your home country and how︉ you severe ties: most EU countries consider you as still resident in the country if︊ you move to UAE unless proven contrary, for 2-3 years. so the tax authority will︋ likely check on you, and you better have solid answers ( which if you don't︌ have family or kids, means having at least a tax certificate in dubai and not︍ spending too much time in your home country ). What matter most is whether the︎ tax authority comes after you ( which is unlikely if you are 22-25 years old️ and never paid serious taxes, really likely if you are 40 ) and what you risk if it does, I mean if you risk prison, or a fine. After that, it's all risk/reward.
A good example is that if you have wife and kids in︀ europe, you can spend 365 days in Dubai, but when you re enter the country,︁ you will be taxed as the center of personal interest was the EU country. This︂ happened for lots of soccer players who went to dubai to play but had family︃ in EU. Same would apply for dubai, if you stay in dubai less than 90︄ days because your work requires travelling abroad but you have your family in dubai and︅ you have true business in dubai, you will be considered a tax resident in dubai,︆ which could mean nothing if you also trigger residency in other places. It all depends︇ on what your business is and how it is structured.
As often discussed, as a︈ digital nomad, the most important thing is how you exit your home country and how︉ you severe ties: most EU countries consider you as still resident in the country if︊ you move to UAE unless proven contrary, for 2-3 years. so the tax authority will︋ likely check on you, and you better have solid answers ( which if you don't︌ have family or kids, means having at least a tax certificate in dubai and not︍ spending too much time in your home country ). What matter most is whether the︎ tax authority comes after you ( which is unlikely if you are 22-25 years old️ and never paid serious taxes, really likely if you are 40 ) and what you risk if it does, I mean if you risk prison, or a fine. After that, it's all risk/reward.
Then why were you quoting my reply that was to another point? You do understand the point 1 I was talking about is the point 1 in the text quoted by ADROCK123 right?
Guys it's not that deep, your average south asian compliance officer in dubai won't give a s**t if you have a tax residency in the UAE or not.
He wants to see your EID, your proof of address (Ejari) and having a good case so he can open an account for you.
The tax residency cert is great if you want to have that assurance and which is indeed very helpful as some financial institutions in Switzerland, EU and USA require that cert to be able to open an account or trade with them, or will they request it later anyway if you have substantial︀ amount of money going in and out of your account.
it's also great since you︁ will be able to utilize DTTs and lots of other useful things.
but just don't︂ be dumb and spend most of your time in Spain or Portugal thinking you are︃ safe and ask what went wrong when the EU tax officer knocks at your door.︄
What happens on the Ground is verry different from what's written in the laws. the︅ kafala system in qatar is a perfect example of this, they said that they get︆ rid of that, but the reality is, well, you can see by yourself.
He wants to see your EID, your proof of address (Ejari) and having a good case so he can open an account for you.
The tax residency cert is great if you want to have that assurance and which is indeed very helpful as some financial institutions in Switzerland, EU and USA require that cert to be able to open an account or trade with them, or will they request it later anyway if you have substantial︀ amount of money going in and out of your account.
it's also great since you︁ will be able to utilize DTTs and lots of other useful things.
but just don't︂ be dumb and spend most of your time in Spain or Portugal thinking you are︃ safe and ask what went wrong when the EU tax officer knocks at your door.︄
What happens on the Ground is verry different from what's written in the laws. the︅ kafala system in qatar is a perfect example of this, they said that they get︆ rid of that, but the reality is, well, you can see by yourself.
Thanks for the reality approach from someone actually living in Dubai.
I don't want to blame or pushback any from the earlier mentioned theories but what @MiddleEuroAsia mentions here is actually the reality - nothing else.
I don't want to blame or pushback any from the earlier mentioned theories but what @MiddleEuroAsia mentions here is actually the reality - nothing else.
sorry no I misunderstood 😀
For me they didn't even need an Ejari, a PO BOX + EID +︋ Residence Visa was enough ( although later on I provided them with an EJEARI as︌ I had one and needed the address to be the same on Interactive brokers and︍ My UAE bank ).
And I totally agree that there is a big difference between︎ making a law / signing a treaty and enforcing the law / treaty. I mean,️ you don;t have to go to Dubai to see that, in part of the EU ( especially Italy/Greece ) that's the norm, laws are passed to please Germany, but then not enforced.
And yes in any case there is always the fact not to have ties with any country, especially your home country.
ok I misunderstood the point he︀ was talking about, I was making an example of what would get you a tax︁ certificate. Becoming a UAE national is really hard, either 30 years of residency or special︂ merit How to Get UAE Citizenship: Guide on Obtaining Emirati Passport
For me they didn't even need an Ejari, a PO BOX + EID +︋ Residence Visa was enough ( although later on I provided them with an EJEARI as︌ I had one and needed the address to be the same on Interactive brokers and︍ My UAE bank ).
And I totally agree that there is a big difference between︎ making a law / signing a treaty and enforcing the law / treaty. I mean,️ you don;t have to go to Dubai to see that, in part of the EU ( especially Italy/Greece ) that's the norm, laws are passed to please Germany, but then not enforced.
And yes in any case there is always the fact not to have ties with any country, especially your home country.
ok I misunderstood the point he︀ was talking about, I was making an example of what would get you a tax︁ certificate. Becoming a UAE national is really hard, either 30 years of residency or special︂ merit How to Get UAE Citizenship: Guide on Obtaining Emirati Passport
This may change with UAE's plans for new digital platform to share information between public and private sector. Pretty sure willful tax evasion will fall under money laundering sadly.
https://www.arabianbusiness.com/pol...ans-to-stop-money-laundering-terror-financing
UAE announces new plans to stop money laundering, terror financing
https://www.arabianbusiness.com/pol...ans-to-stop-money-laundering-terror-financing
Martin, how many times did you hear that MENA countries plans to do this and that? a lot, how many times did you see these laws being made? a handful of times! how many times did you see these laws actually enforced? yeah, that's a different answer.
You can't rely on laws on a country whose political leaders can︀ change these very laws on a whim if they feel like it. You need connections,︁ you need to know what will pass and what won't! you need to actually see︂ how things work on the ground!.
You can't rely on laws on a country whose political leaders can︀ change these very laws on a whim if they feel like it. You need connections,︁ you need to know what will pass and what won't! you need to actually see︂ how things work on the ground!.
Do you mind being more specific here about these plans you mention that are not followed through? I am talking in relation to fighting money laundering and terror financing not building some man made island in the water. UAE is trying to get off FATF grey list. You think they are not gonna︀ follow through in this case then?
Yes once our service is provided and the Dubai Setup runs on Auto Pilot we have only communication about Banking, Renewals, Changes in Structures etc.
They are all doing well - the one or the other way around - otherwise they would have complained here already.
They are all doing well - the one or the other way around - otherwise they would have complained here already.
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