Ranked as #1 on the Tax Attractiveness Index prepared by the Ludwig Maximilian University of Munich (LMU), owning a Dubai-based business or personal bank account has numerous tax benefits. The 'zero-tax jurisdiction' most noticeably offers Research & Development tax incentives, low Dividend Withholding and Personal tax rates, and the lowest international money transfer costs for businesses.
Almost all the major financial institutions of the world have a representation of one form or another within the city of Dubai. The likes of CITI, Standard Chartered, Barclays Bank, and Deutsche Bank have made themselves feel at home in the sunny arid climate of the United Arabic Emirates. There is no need to physically be in the UAE to open an account, which is one of the many benefits of living in this millennial age, but may be needed for corporate business accounts (retail business accounts may not need a physical presence at registration depending on income levels and other factors).
THE ADVANTAGES
The financial regulatory laws of the UAE enforced by the Central Bank of the UAE are arguably the most secure in the world (in stiff competition with Swiss-based & Isle of Man-based banks). A pretty good indicator of a country's banking security standards is how many life insurance companies open offices and/or branches in it. Life insurance companies tread on thin ice with many people's literal livelihoods entrusted to them, so they don't play around with their country and specific bank choices.
Many of the Dubai-based banks such as CITI offer wealth management services for minimal annual management fees in addition to annual banking fees (as little as 0.20% in management fees) . This brings the value of being a one-stop-shop for all a client's financial needs, as opposed to fishing for Financial Advisors, which is always difficult as so many of them have dubious intentions and ulterior motives.
HOW LONG IT TAKES & GENERAL REQUIREMENTS
The vetting and verification process typically takes between 24 hours and 7 working days for personal accounts, with business accounts taking slightly longer, depending on size and nature of operations and business model. A recommendation letter from an existing bank would be required for personal accounts, as well as several months statements to serve as proof of income. Naturally certified copies of your passport and local tax certificate would be attached, as well as a business plan, cashflow statement, and company legal documents for business account applications.
COST OF OPENING THE BANK ACCOUNT
Personal accounts average a minimum of USD$950.00 per single account holder, whilst the business account opening fees vary with the business's income, i.e. there are different cost structures for businesses that earn different levels of income. CITI bank works with a 'minimum monthly average balance' requirement of at least AED 3,000.00 (€810/USD$816.75/R13,815.88) for personal accounts.
Resources:
Open an offshore personal account: Current Account - Open Current Account in UAE | Citibank UAE
Open an offshore SME business account: Offshore Banking Unit - SME Banking - Standard Chartered Bank Taiwan (sc.com)
Open an offshore Corporate business account: Commercial – Standard Chartered UAE (sc.com)
Reliable Offshore Bank Brokers:
Tax Attractiveness Index:
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