Tax and Estate Planning for Dubai Residents

Dubai has become a popular destination for expatriates and retired persons. It has excellent communications, good business facilities and of course an absence of taxation, making it an attractive location for businesses, particularly those operated by mobile operators and for retirees who have accumulated substantial wealth.

Dubai tax planning for the Dubai resident is therefore simple, there is no need to do anything. Most new residents will however hold assets outside the Emirate, whether in the countries where they were resident originally, or elsewhere. The same is true for local citizens. The effect is that they may be exposed to income taxes, capital gains taxes and estate or inheritance taxes in the countries in which assets are held.

Such potential liability brings with it the need to structure the ownership of the assets to minimise exposure. This may take the form of a simple offshore company, or a trust and company. Where substantial wealth or business assets are involved, a company in a location such as the U.K, Luxembourg or the Netherlands may be desirable.

The new resident will also have to take into account that on his death, local assets in Dubai, will pass according to Sharia law, under which spouses and children are entitled to pre determined proportions. This may not be according to his wishes and to avoid such forced devolution, such assets should also be held through an offshore company.

Why not talk to us about your Offshore requirements call +353 1 431 9663 or Click Here to contact us.