 |
| Financial services in Dubai |
Everyone’s financial needs are different, but expats in the United Arab Emirates will find they often have the same few financial issues in common.
The importance of each depends on where the expat comes from – for instance, those from Britain are used to a free education, and part of their culture shock in the UAE is they are expected to pay for this service.The UAE is also home to many American expats, and one of the major financial issues they face is the impact of the US Foreign Account Tax Compliance Act (FATCA) even though they are thousands of miles from home and may intend never to return.
The UAE Top Five Financial Questions
So let’s look at the five top financial requirements in the UAE one by one, but in no particular order of importance and how deVere Group can help:
PAYING FOR EDUCATION
Most families will send their children to an international school in the UAE. The most popular schools soon fill their places, so enrolling children in classes is one of the first tasks for an expat family.
Fees vary between schools, but one of the major considerations is the cost of schooling tends to rise much quicker than inflation, so making adequate financial provision from early schooling through to university is vital
 |
| Financial Services in UAE |
RETIREMENT SPENDING
Many expats get their sums wrong over retirement planning. They earn good money and pay no tax but tend to spend a lot as living in the UAE is expensive. Retiring to the UAE is costly when the cost of accommodation, utilities, food and clothing are taken into account on top of luxuries, hobbies and holidays.
Another cost often overlooked is health care.
QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME (QROPS)
British expats and foreign workers who have built up a UK pension can transfer their fund to a QROPS. For many expats, QROPS offer tax, financial planning and investment benefits unavailable in an onshore pension.
It’s easy to think your pension is safe and accessible in the UK, but the rules keep changing and moving the money into a QROPS is an attractive option for some expats.
SAVINGS AND INVESTMENTS
Expats who are no longer resident in Britain lose the tax breaks that come with saving and investments back home – like the perks of ISAs and pension contribution relief.
Instead, savers and investors can look to offshore funds and special investment opportunities –but beware the sharks and scammers. This is one area of financial planning where regulated advice from a reputable firm is most important.
FATCA
US expats come under FATCA but many do not realise that even though the law places no reporting obligation on them, their banks and other financial institutions report information about their offshore earnings and investments to the Internal Revenue Service (IRS).
In turn, this data is compared to their US tax filings, so understanding how the rules affect their finances is vital. deVere Group can help with fulfilling these obligations and not falling foul of FATCA.
Although these are the top five UAE financial requirements, plenty of other products and services are also regularly asked about by clients – such as expat mortgages, life assurance, tax planning and estate planning.