Banking, Money and Taxes in Dubai
For many Dubai expats,the attractive prospect of having a tax-free income leads them towards Dubai. There are no taxes on income, property or capital gains; of course, some might argue that other costs of living make up for the lack of taxation. In recent years there have been rumours that a tax system will be introduced to the UAE, however at present no such plans have been confirmed. Dubai Expats are required to pay a five percent levy on accommodation, payable to the municipality.The currency in Dubai is the UAE Dirham (AED). Other abbreviations include DH or Dhs.
Opening a bank account in Dubai is simple enough; expatriates must be in receipt of a residence permit, passport, an additional identity document (drivers licence) and a salary letter from the employer. It is often useful to open an account with the employers’ bank for faster transactions. Various accounts are available and there are a good number of banking and financial institutions in the UAE.
Be warned: it is illegal to ‘bounce’ a cheque in Dubai. The minimum penalty for doing so is a month in jail.
