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Account opening in Dubai
As one of the world's leading financial centres, Dubai offers numerous opportunities for individuals, the self-employed, entrepreneurs & investors to open a bank account. In addition to the potential tax savings, banks in Dubai offer a high level of asset protection and access to a stable and secure financial system.
Dubai and the UAE transmit data to foreign authorities
One of the most frequently asked questions about opening a bank account in Dubai is whether banks in Dubai and the United Arab Emirates transfer financial account data to foreign authorities. The answer is: it depends.
The United Arab Emirates have been 2017 participated in the Common Reporting Standard (CRS). Since then, banks in the UAE have been obliged to transmit account holders' financial information to the countries in which they are resident for tax purposes. The information transmitted includes account transactions, interest income, dividends and other relevant financial data.
- Exceptions confirm the rule
Excluded from the automatic exchange of financial information are both private and business accounts of account holders who have a valid residence permit in the form of a Residence Visa and one Emirates ID available.
Persons without a residence visa and Emirates ID are account holders of so-called non-resident accounts. When opening non-resident accounts, the banks ask for the tax residence and tax number when the account is opened, which means that all account information is automatically forwarded to the authorities in the home country.
Open a business bank account in Dubai
While a residence permit is not required to open a private account, a valid residence permit in the form of a residence visa and an Emirates ID is required to open a company account in Dubai. This can be applied for in the course of setting up a company in Dubai. A valid residence permit also prevents the transfer of account data to foreign authorities.
Unlike in Europe, opening a business account in Dubai and the UAE can take a little longer due to stricter compliance guidelines. The process differs between online banks and local banks in terms of the time required and the documentation needed.
It is important to think about opening a bank account when setting up a company in Dubai, as it is difficult or even impossible to open a business bank account in Dubai with some business activities that can be seen in the company documents.
Online banks vs. local banks
- Online banks
- Company documents
- Passports of all managing directors and shareholders
- Residence permit from at least one party
- Local banks
- All documents as with online banks
- Business plan
- Proof of residence in the UAE
- CVs of all participants
We recommend that our clients open a business account with an online bank as a first step in order to minimise the effort involved and to be able to process business transactions as quickly as possible. If necessary, an account can then be opened at a local bank.
Foreign currency accounts & credit cards
Both online banks and local banks in Dubai and the UAE offer accounts in the local currency Dirham (AED) as well as accounts in all common foreign currencies such as Euro, US Dollar, Swiss Franc, British Pound and many more.
Most bank accounts in Dubai and the UAE include a Visa debit card in the local currency, the dirham. Some banks also offer debit and credit cards in foreign currencies to avoid exchange fees abroad. These must always be applied for separately.
The concept of credit cards has been changed in the past due to heavy abuse by immigrants in Dubai and the UAE. If you want to have a credit card to collect points for airlines, for example, you have to deposit a security deposit equal to the monthly card limit with the bank or card provider. Nevertheless, credit cards from some banks and providers are ideal for collecting points for airlines & hotels.
Company formation & bank account opening in Dubai
If you are thinking about emigrating to Dubai, setting up your company in Dubai or opening a bank account in Dubai to escape the tax madness in Europe, then arrange a completely free consultation now.
We support you in setting up a company, emigrating, obtaining residence permits, purchasing property and opening bank accounts in Dubai and the United Arab Emirates.
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As an unbeatable collective of established entrepreneurs, renowned lawyers and experienced tax advisors, we are a reliable partner at your side - for tax optimisation, foreign companies, global expansion banking, emigration or asset protection.