Money Matters in Dubai – What Expatriates Have to Know

Leaving home and moving to another country is a serious business. Along with your visa, employment and accommodation, you have to arrange money matters as well. You have to look into these before relocating to Dubai and once you arrive in the country. There are a number of aspects that you have to focus on. You have to look at the cost of living in the emirate and decide how you will manage these. You have to consider bank account and financial asset management as well. You have to arrange any tax maters. This is of particular importance.

The cost of living in Dubai is high. It is true that property prices are relatively low at present, but rent rates seem to remain steady. You can expect to pay quite a lot for accommodation. Your living expenses will not be particularly small either. Generally, the entire relocation might be quite costly especially if you plan to ship items to Dubai. For all these reasons, you have to calculate all expenses you will incur in advance. Check what your employer offers as part of the employment package. Most companies provide accommodation, utilities, transportation and even relocation allowances. You might get your entire rent covered by your employer. You should not hesitate to negotiate such benefits before arriving in the emirate.

When you move to Dubai, you have to open a bank account in the emirate. This is a requirement as your salary will be transferred directly to your account. You can choose to become a client of any of the international banks with offices in the emirate or opt for a local bank. You might want to discuss this choice with your employer. If you need to professional financial advice, you can use the services of a consultant licensed by the Central Bank of Dubai.

You are highly recommended not to close your accounts in your bank at home. This is applicable to both the checking and savings ones. As long as you manage these effectively, you will be able to maintain a good credit score. You will definitely need this once you go back home. You should definitely look into the opportunity of opening an account with the bank, whose services you are using at home.

There are a number of things that you have to know about taxes in Dubai. There is no personal income tax as long as the money is earned in UAE. There are no withholding taxes either. This means that your income from interest and company dividends is not taxed either. Hence, you can readily consider making investments while working in Dubai. There is no VAT at the moment in Dubai. However, the local government plans to introduce it in the near future. The set deadline is 2012. This is not far from now, so you have to consider this financial matter as well.

Before you leave home you have to notify the tax authorities in your country about your relocation and new employment circumstances. You have to notify the social security institutions as well. You have to make sure that you have arranged all tax and social insurance matters before you relocate to Dubai.