Are you moving to Dubai - this might help

[majolo]

Hi,

I have been offered a job in Dubai. I am in my late twenties,from EU country and single guy.
I'm interested in meeting new people and would like to also experience the things that Dubai has to offer, like trips,clubbing, ... but all that mostly during the weekends. Not my intent to spend money like crazy and I'm not into a designer clothes, will try to save some also.

I was in Dubai for a week already.

The location of the company offices is Dubai Silicon oasis.

I have been offered base monthly salary of 14,300 Dhs + allowances, which are:
accomodation allowance 77000 per year
transportation allowance 715 per month
paid health insurance
Annual airticket allowance
Relocation allowance 5000 one time

My rough calculations are that I would apox have additional expenses of a single person with:
DEWA 350
groceries 1200
internet 700
other ???
+ taxi expenses in first few months to get used to the roads and dviving,and then I would rent a car or buy a used one. Please add how much expenses would I have with that.

I'd like to live as close as possible to my office location to avoid daily traffic.
What are the good locations nearby to search for an 1 bedroom apartment or a studio flat? I've heard of arabian ranches are nice, and not so nice inter.city is also close, your opinions please.



Thanks in advance for your help

regards

[dubaibound1]

Originally Posted by MichaelJ47

Hey Dubaibound1, a quick question about lightening your tax burden...could you not incorporate in say Delaware a small management business and use that as a vehicle for your income. Delaware is a tax haven if your income does not come from within that state and you are then eligible to pay only a $200 "tax franchise Fee" per annum ?

You can then offset your offshore contract expenses ( Dubai) to that business and still save on Tax ..maybe ? Yes / No ?

Thank you for the suggestion, I'm looking in to it.

[dubaibound1]

Originally Posted by MichaelJ47

Hey Dubaibound1, a quick question about lightening your tax burden...could you not incorporate in say Delaware a small management business and use that as a vehicle for your income. Delaware is a tax haven if your income does not come from within that state and you are then eligible to pay only a $200 "tax franchise Fee" per annum ?

You can then offset your offshore contract expenses ( Dubai) to that business and still save on Tax ..maybe ? Yes / No ?

This maybe even better and the fact that I reside in nevada.

Nevada, widely known as the gambling capital of the world, has the fastest population growth of any US state, yet only a few miles from Las Vegas you'll find yourself in the wide open spaces of the "Old West" with its laissez faire attitude that, in many ways, still prevails. With the gaming industry and resulting tourism providing a major share of state tax revenue, along with its business friendly statutes and elected officials, Nevada provides businesses, especially smaller ones, what some consider to be the most advantageous economic, tax and legal environment in the US.

Along with having most of the benefits of Delaware, Florida & Wyoming, Nevada has no personal OR corporate income tax, is located in the booming western US (next to California & Arizona), and is the ONLY state to reject all information sharing agreements with the US' federal tax agency - the IRS.

[MichaelJ47]

Just check with an accountant on the incorporation , if you go that route, as IRS doesnt exclude you if you are a private individual only in an LLC you may also be liable for self -employment tax ..it is a bit of a minefield so an accountant is a good investment

Good Luck. I do know Nevada & Delaware are the most progressive state for tax avoidance legislation

[cee11]

Hi Elphaba,

Appreciate you advise on the offer I had recd for a planning and strategy role in telco (I have about 10yrs experience in telco).

Monthly base: AED16k
Monthly Accomodation & Transport: AED13k

My hestitation stems from the fact that the offered annual base is lower than my current base in absolute terms =( Pls advise if its sufficient to live comfortably and still able to have savings and send money home.

Thanks in advance!

[Elphaba]

Originally Posted by cee11

Hi Elphaba,

Appreciate you advise on the offer I had recd for a planning and strategy role in telco (I have about 10yrs experience in telco).

Monthly base: AED16k
Monthly Accomodation & Transport: AED13k

My hestitation stems from the fact that the offered annual base is lower than my current base in absolute terms =( Pls advise if its sufficient to live comfortably and still able to have savings and send money home.

Thanks in advance!

An allowance of AED 13k per month is suffient for housing and transport for one person and you can live comfortable on AED 13k per month is those basic needs are met. Presumably the basic plus the allowances are higher than your current salary?

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[cee11]

Originally Posted by Elphaba

An allowance of AED 13k per month is suffient for housing and transport for one person and you can live comfortable on AED 13k per month is those basic needs are met. Presumably the basic plus the allowances are higher than your current salary?

-

Base + transport is lower than current but base + transport + housing is higher. Has rental soften recently or has it escalated?

[APAyres]

Following on from the discussions, i've done a lot of research on Dubai during the last couple of weeks as i'm planning to move out.

One question i cannot find an answer to anywhere is what happens, from a taxation perspective, to savings accrued over a 2-3year period - if, for instance i was to return to the UK?

Would i be taxed on those savings?

I understand that as a non resident in the UK i don't get taxed but there's no information on bringing 'reserves' back in to the UK.

Any assistance or advice would be greatly appreciated.

[Maz25]

As far as I am aware, you will not get taxed on it until you decide to bank it. Once you bank it, only the interest earned is taxable!

[APAyres]

Originally Posted by Maz25

As far as I am aware, you will not get taxed on it until you decide to bank it. Once you bank it, only the interest earned is taxable!

That's really helpful, thanks.