If you’ve been reading my blog for a while you’ll be aware that I generate all my income online and have been looking for a way to pay no tax, legally, and set up my banking overseas. This has lead to a lot of research on the matter. If you’re considering moving your banking overseas, or your entire business, you might be interested in what I’ve found out about the UAE:
Free zones and the UAE – the United Arab Emirates – go hand in hand which is why this Persian Gulf country is a no-brainer for foreign investors, business leaders and sharp-eyed entrepreneurs looking for the next big opportunity . This is precisely why I’m heading there to open a bank account and pay no tax legally.
Foreign companies are positively encouraged to set up in this oil and gas-rich nation which is currently embroiled in the development and diversification of its economy away from over-reliance on the lucrative hydrocarbon sector.
Ticking the boxes
Of course, macro-economic policy is a million miles away from the everyday nuts-and-bolts reality faced by the foreign investor, entrepreneur or business boss who’ll likely be more concerned over weightier matters, such as export financing, tax breaks, or the payments and cash management services offered by banks both at home and abroad.
And if such incentives and financial services are key factors when opting to set up a venture overseas, long-term stability of the political and economic environment in which any business operates in is also crucial. From that viewpoint alone, the UAE certainly ticks all the right boxes.
Free Zone Perks
The UAE has set up dozens of free zones across the country in a whole variety of sectors, from Dubai International Academic City, the world’s only free zone dedicated to higher education, to the multi-billion dollar industrial park and ports operation known as Kizad, short for Khalifa Industrial Zone Abu Dhabi. Kizad is expected over the next decade or so to contribute in the region of 15% towards the UAE’s non-oil GDP.
But it’s the list of perks on offer which continue to draw in enterprises both large and small from all corners of the world – indeed, there are even queues of companies waiting to set up in some of the UAE’s free zones! Minimal red tape and bureaucracy also play a major part, too, as does the location of the UAE itself in terms of its mid-way point between markets to the east and west.
What’s not to like?
For starters, how about zero corporate tax, zero personal tax liability and 100% foreign ownership allowed? Mouthwatering. Add 100% repatriation of capital and profits to the mix along with no foreign exchange controls. There are also bespoke infrastructure options to entice the hesitant.
And when it comes to hiring and firing staff, you’re in the driving seat, no ifs or buts or shoulder to look over. Because red tape and regulation are bare-bones, to say the least, businesses can be set up in a matter of days. Forget the weeks, maybe even months found in so many other parts of the world. Business-friendly? You’d better believe it.
A Word of Caution
Just because you’ve all of those goodies on offer doesn’t mean you should just dive in. Don’t lose all of that hard-earned business objectivity which, so far, has stood you in good stead. Get the picture? Businesses can – and do – fail even in such a benign climate as that found here. Nevertheless, you’ll look long and hard to find a country as inviting or as pro-business as the UAE. Also bare in mind that in the UAE certain laws can influence your assets and banking in ways you might not expect – so spend some time researching this.
For me, of all the countries in the world that can be considered a tax haven with excellent banking services, the UAE is the stand out destination for me. I’ll be heading to Dubai in August or September to get my banking set up.