As per the statistics published by UAE Central bank, there are 46 Commercial banks are operating in the UAE & 68 Representative Offices of Foreign Banks in Dubai. The United Arab Emirates has earned the reputation of being the safest country for banking operations. With an extensive network of local and international bank presence combined with conducive business environment makes UAE an attractive destination for global investors.
As a first step to open a bank account, investors can register a company in any freezone or offshore jurisdiction. For such registration, they can seek the guidance of professional business consultants who are Registered Agents of freezone or offshore. Upon registration of a company and taking up a residence visa under it, the consultants will introduce investors to the bank. They can open a bank account for the company as well as personal. Investors can open Dollar account, Dirham account, Euro account or any other currency account with any of the bank in UAE. Cheque book, debit card, credit card, online banking facility & token device are provided while opening freezone company bank account. For Offshore company bank account, only online banking facility and the token device will be provided.
Each bank in the UAE has the different amount to be maintained as average minimum balance in the company account. This amount varies from AED 25,000 to AED 200,000 depending on the banks. These banks also provide a variety of Investment options from which the investors can avail good annual returns.
Why the Europeans open a bank account in UAE?
The tax levied in many European countries are very high, for e.g: the latest tax rate applied to residents with no children on an average salary in their country is as follows:-
- Belgium- 42.80%
- Germany – 39.90%
- Denmark – 38.90%
- Hungary- 35%
- Austria -34%
- Greece – 25.4%
- OECD Average – 25.10%
- UK – 24.90%
- USA – 22.70%
- New Zealand – 16.40%
Precisely due to this high tax environment, most Europeans shift their residence to UAE, upon acquiring residence visa after incorporating their minimum package company in UAE. They can run their business in other countries while saving a considerable amount of tax, by having a bank account in UAE. In the UAE, the only tax levied is VAT ( Value Added Tax) at the rate of 5%, based on the activity & income of the company and there is no personal income tax for residents or non-resident expatriates.
Investors can seek the help of well-established business consultants in Dubai to support in saving taxes and wealth management.