The UAE joined the Global Forum on Transparency and Information Sharing for Tax Purposes following the decision of the UAE Council of Ministers in 2010.

Society Constitution
offshore emirates

Refuses to apply the Tax Information Exchange agreements
United Arab Emirates

L

The UAE will begin to apply in 2018 the agreements on information exchange for tax purposes developed by the OECD and the G20 in accordance with the provisions of the FATCA Law (Foreign Account Tax Compliance). The UAE joined the Global Forum on Transparency and Exchange of Information for tax purposes following the decision of the UAE Council of Ministers in 2010 and earned him a seat on the International Steering Committee of that Forum.

Why with Foster Swiss?

S
There are many reasons to put yourself in the hands of a consulting firm with a long history and Swiss tradition that will help you manage your assets efficiently.

  • We are independent international private banking consultants offering high flexibility.
  • We have a long history and Explore professional that endorse us as financial specialists.
  • We carry out all our procedures from our offices in Madrid and Geneva.
  • We offer bilingual attention (Spanish and English) personalized and tailored to each client.
  • 100% discretion and confidentiality assured.





    Sharia is the dominant norm in Islamic banking

    P

    It may seem that Islamic banking is against profiting from its actions, something contradictory in today's capitalist world. However, the islamic banking offshore It is against usury, in other words, the practice of charging excessive interest on loans. There are extensive passages in the Koran that condemn this practice. In many cases β€œexcessive interest” is interpreted as any type of interest. However, interest is understood by our western banks as financial compensation to the lender for the cost of lending the money.

    The word "riba" literally means "excess" or "addition", and has been translated as interest, usury, excess, increase or addition. According to Shariah terminology, it implies any overcompensation without due consideration.

    On the other hand, these entities work mainly with the Asian region. This is one of the reasons why they only offer customer service in two languages: English and Arabic.

    Tax haven within paradise

    Free trade areas in Emirates

    E

    There are two important areas known by their initials JAFZA and RAK where registered companies can benefit from a tax exemption for 50 years. The Jebel Ali Free Zone in Dubai is one of the most recognized free trade zones; It was created in 1985 to attract investors and create a tax-free, barrier-free business environment. About 30 kilometers from Dubai International Airport, Jebel Ali has the largest man-made port facility in the world. More than 3.000 companies from more than 60 countries have already established themselves in this area. On the other hand, the Ras Al Khaimah Free Zone (RAK) offers important advantages, especially in terms of establishment costs.

    Why doesn't an offshore company in the Emirates pay taxes?

    E

    The main reason for this situation is the tax status of companies. Many people register an offshore company in the Emirates Registries with the intention of keeping it inactive. The resident director of Dubai will be listed as the owner safeguarding the identity of the beneficial owner. This way you will not have to declare it in your country of origin.

    Difference between offshore companies and companies in free zones

    There are many similarities between the two. However, each of them is established for completely different purposes.

    Both can be wholly (100%) owned by a foreigner without the need to partner with a local entrepreneur. All companies may benefit from having a bank account in a Emirati bank and all of them will be registered in the country's registers. However, there are also differences between them.

    A Free Trade Zone company aims to carry out commercial activities within the United Arab Emirates without the taxes associated with this activity and with the certainty that the capital can be totally foreign owned.

    However, unlike a company in the Free Zone a offshore companyIt cannot operate directly in the United Arab Emirates, despite being registered as a legal entity with the corresponding Free Zone authorities in the United Arab Emirates.

    Islamic banking offers slow and expensive service

    L

    Banks often adjust the structure of their assets with the help of specialized wealth structuring managers. Among the services offered of medium quality, the Wealth planning. This medium quality service is offered by specialists in the global structuring of family, private or business assets to optimize ownership, management and capital movements, taking into account the tax regime applicable to each client.

    • Private banking, slow
    • Advisory services: It is recommended that clients seek prior legal advice and / or a professional of their choice, private banking does not usually provide this type of service. Unless requested, they usually refer clients to the respective professionals within their network of contacts.
    • Investment services: they work mainly with the Asian region. The markets in which it is mainly invested are those of the countries known as "Asian dragons", countries that are offering high rates of growth.

    What banks are there in the Emirates?

    L

    Local banks are usually strong and do not depend on the outside for their business. They generally do not have foreign branches outside the Gulf region. The banking system allows unlimited cash transfers at all hours of the day and with the ability to move large amounts of money.

    Depending on the type of service that the islamic banking it will be slower and more expensive. For example, if accounts are requested for a personal account, there is a requirement that the client must go in person to the bank branch and taking into account that these banks do not usually work in the European area, it will be somewhat expensive.

    On the other hand those who wish open an offshore company subsidiary in the country will have to face the inconvenience of time and the high cost of document certification with its corresponding translations and other administrative procedures.

    The most widespread option is open a bank account offshore associated with creating a new offshore company as a free zone. It is the cheapest option in terms of time and money.

    Fiduciary services in the Emirates

    D

    Depending on the type of service that is required, Islamic banking will be slower and more expensive. For example, if accounts are requested for a personal account, there is a requirement that the client must go in person to the bank branch and taking into account that these banks do not usually work in the European area, it will be somewhat expensive.

    On the other hand those who wish open a foreign company subsidiary in the country will have to face the inconvenience of time and the high cost of document certification with its corresponding translations and other administrative procedures.

    The most widespread option is open an offshore bank account associated with creating a new offshore company as a free zone. It is the cheapest option in terms of time and money.

    All rights reserved Foster Swiss