Despite the oil crisis and other geopolitical issues in the region, Dubai remains an attractive base for HNW families from across the globe. With its favourable tax regime, which sees individuals paying no income, estate, or capital gains, a robust legal framework and extensive foreign trade networks, individuals are increasingly choosing Dubai as the location to manage their global affairs.
For the last four years I have lived and advised clients resident in Dubai. Global connectivity and the general quality of life have, and I’m sure will continue to be, key factors influencing families to make the move.
In recent months however, interest from UK residents has undoubtedly increased, this is unquestionably a direct result of the imminent resident non-dom changes, due to be introduced on the 6th April 2017. In particular we are seeing individuals from the British Asian community, whose links to the UK are lessening, considering the move. With their offspring now independent and technology enabling them to manage business affairs anywhere in the world, clients find that they have little cause to remain in the UK.
We also appear to be seeing a similar trend with resident Indians. As Indian families internationalise their wealth, the individual directly responsible for the day-to-day running and administration of assets, sees Dubai as an increasingly attractive hub to manage complex affairs.
Aside from its favourable tax regime, Dubai offers individuals the opportunity to run and administer their own structures. The private trust company structure enables an individual to have greater involvement in the running of their affairs, while at the same time benefitting from the support of a good governance framework.
However, whilst a move to Dubai may appear simple there are some key considerations that should be addressed, with the support of local advisors, in advance of your arrival.
- What issues might you have in other tax jurisdictions? Despite the fact that you have moved country you may have liabilities elsewhere.
- Which residency visa works best for you and your family? The most straightforward and reliable solution could be to incorporate your own company in the UAE.
- How might Sharia law affect you and your family?
- Are you hoping to establish a business in Dubai? If so, you may need to find a local partner to support the operation.
- Have you considered which local bank you might use?
Whilst a move to Dubai won’t remove many of the complexities that come with managing family wealth, it can certainly provide families with greater opportunities for planning and importantly, as I have seen on many occasions, can offer individuals increased control of their affairs.
Mayfair Private provides private advisory services to a select group of families by bringing together a broad range of highly qualified professionals to seamlessly manage their affairs.
For more information on how we might support your move to Dubai, please contact Deepak Malhotra.