If you’re about to join the expat community in the Capital, here are some things to address before you move.
7 June 2017| Last updated on 15 June 2017
Relocating abroad is a lengthy process that takes a lot of preparation. Among the many things to consider are your finances. Here are some financial topics that should be thought of before making the move.
One of the main reasons expats move here is to benefit from not paying personal income tax. While this could be great, it doesn’t mean that you won’t have to pay taxes in your home country. The laws will differ based on where you’re from, so it’s best to verify with a professional on what the tax laws state.
Even if you will be exempt from paying taxes in your home country, make sure to get informed about the procedure to get that exemption, so that you’re not caught off guard later on.
In the UAE, employers are required by law to provide private healthcare for their employees. However, coverage can vary greatly between companies and plans, so you might need to pay extra for a better plan or pay for certain uninsured things separately, such as dental care, which can become costly.
3. Bank accounts
As an expat, you’ll need to open a bank account here to be able to receive your salary. However, you won’t be able to open an account until you have your residency and Emirates ID, which can take a while.
If there’s something that you’ll need a bank account for, such as paying off loans or bills back home, then it would be wise to keep your bank account in your home country open and use online banking.
Part of moving here is giving up any benefits you were entitled to in your home country. For most countries, you’ll likely need to stop any pension contributions if you’re no longer living there. For some, it might be possible to contribute at a lower level.
Whatever the case, you’ll need to plan ahead and make sure you’ll be securing something for yourself in the future.
This is not normally something people think of, but it’s very important. Since the UAE is a Muslim country, all courts adhere to Shari’a laws in regard to inheritance in the case where no will exists at the time of death. This can inevitably result in a very different distribution of your wealth and assets compared to your home country laws.
Therefore, preparing for the inevitable can secure your family’s future and avoid significant consequences.