What are the Benefits of Having Offshore Bank Account in Dubai?KWS Admin
In the past, the term “offshore” was used to describe places which were ideally opted for tax evasion and money laundering but over the time the concept has changed. The name “offshore” was first given to Channel Islands as they were offshore from United Kingdom. While most offshore banks are located on islands however nowadays the word is used figuratively and having an offshore bank account means that the account is located outside of the client’s home country. It is completely legal to have an offshore account, anyone can open it and it is an extremely useful mean for personal money management.
Benefits of an Offshore Account:
Offshore accounts are typically beneficial to a person who is a frequent traveler, living outside of his home country, moving between countries frequently or intending to purchase property, planning to retire there, need to make international payments like fees of children if they are studying in foreign country or if an expatriate has accounts in multiple currencies. Dubai is continuously progressing to become an international offshore center because of its ideal strategic position on the world map uniting the nations of Asia, Europe America and Africa. Due to government’s lucrative policies for international investors, people from all over the world come to Dubai for their own start-ups.
Repatriation of profits:
One of the significant benefits of having an offshore account in Dubai is complete repatriation of profits because the individuals who are living and working in Dubai as expatriates will remit their income back to their home country in order to support their family. Offshore accounts save the trouble to go through the difficult process of setting up foreign bank accounts.
Stable Political and Economic Conditions:
Offshore accounts in Dubai are safe and secure. Dubai provides access to politically and economically stable conditions. This is beneficial for the expatriates belonging to the areas where there is a high risk of political turmoil and they fear from the seizure, disappearance or freezing of local accounts and assets in their home country.
Privacy, Security and Anonymity:
Offshore accounts in Dubai provide privacy, security and anonymity for the protection of their client as client information is not disclosed. Also with the help of internet banking, money transactions can be handled from all over the world through internet.
Having offshore account is also feasible in respect of tax optimization. There is no personal or corporate tax on interest, investment income and capital gains and on inheritance. Also no exchange controls are placed so benefits can be taken by utilizing the opportunities of global investment in Dubai.
In addition to the major benefits, offshore banks in Dubai provide a wide range of services which comprise of all the services of local bank account along with the added benefits of the anonymous offshore account. These services provide the option of storage of liquids, money transmission, exchange of different currencies, credit, investment, trade finance, corporate administration and fund management.
Opening an offshore account in Dubai is not a difficult process. The documentation requires submission of an account opening application along with a copy of applicant’s passport, proof of address and KYC (know your customer) confirmation which is mandatory for banks by the law to check on customer’s financial history in order to determine customer’s source of wealth and source of funds.
Also it is vital from a client’s perspective to understand the purpose of his offshore account creation in Dubai whether for international investment diversification, having a safe haven for investments, wealth structuring, non-restrictive banking options, and potential tax efficiencies etc. Customer should establish a close relationship with their bank and relationship managers in order to make sure that their banking arrangements are synchronized with their personal needs and circumstances. They should keep track of their inflows and outflows to stay on top of overdrafts as so to reduce the costs they incur. Also staying up to date with the interest rate on account and review it to stay competitive. Lastly, offshore banking costs money so it is important to check the cost of banking in Dubai so that client does not receive unforeseen shocks.
Having a prior knowledge of offshore banking is crucial before setting up an offshore company that is why KWS Middle East offers its support and services for new offshore set-ups by providing detailed information about the banking documentation and procedures etc. which will assist you in the creation of offshore account for your business.
For free consultation book your appointment with one of our expert.