Living in the UAE. 10 major money mistakes you want to avoid

Moving to the UAE is a big change. Living in the UAE, or even the wider GCC, is not quite like life elsewhere.

It is not uncommon for expats for make a few financial mistakes but proper planning, some research, and the right advice will make for a better experience, and a better life generally.

This article has a list of the most common errors and while some may seem obvious, they are all made regularly. Knowledge is power so have a read and make sure you aren’t making mistakes that you could easily avoid.

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Moving from the UAE to the UK? You need a financial exit plan.

When you relocate from one country to another there is a great deal you need to think about. This includes the practical problems of shipping your possessions, finding a place to live, finding new schools for children, new employment and so on.

No doubt you will have lists of things to do but one area that is often overlooked is the financial side. It may not be exciting but you need to be aware of these issues to avoid any nasty surprise tax bills, especially in respect of UAE income or offshore investments.

Getting it right will save you money. Getting it wrong can be expensive.

I provide an exit planning service for people relocating to the UK and this professional service, with a personalised advice and a written report you can refer back to, can save you both money and headaches.

I also offer an advisory service for people moving to the UAE from the UK that covers steps you need to take regarding banks and HMRC, letting out a property, taxation, what to do about your investments and pensions, the local laws and rules, issues about inheritance and protecting assets when in the UAE, and a wide range of general information gained from 18 years of living here.

This updated article is about some of the topics that you need to consider when you leave the UAE to move to the UK:

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Planning your financial future – the top 10 mistakes you want to avoid

Too many people bury their heads in the sand when it comes to planning for their financial future so we need to face some facts.

The reality is that most people are facing a significant shortfall in their retirement income.

According to recent figures, the average UK pension pot totals just £50,000 and the average pension income is £500 a week. That income will not just be from the pensions, but from other sources such as the state pension, personal investments or property.

The average UK resident has savings of just £17,365 and 34% have no savings or less than £1,000. Equivalent figures are not available for GCC expats but given that our incomes are higher than UK averages I would hope it is rather more. That said, I all too frequently come across people without any savings or investments.

In this article I  look at some of the mistakes you want to avoid and issues that you really cannot afford to ignore.

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Moving from the UAE to the UK? Do you have a proper financial exit plan?

When you relocate from one country to another there is a great deal you need to think about. These include the practical problems of shipping your possessions, finding a place to live, finding new schools for children, new employment and so on.

No doubt you will have lists of things to do but one area that is often overlooked is the financial side. It may not be exciting but you need to be aware of these issues to avoid any nasty surprise tax bills, especially in respect of UAE income or offshore investments.

Getting it right will save you money. Getting it wrong can be expensive.

I provide an exit planning service for people relocating to the UK and this professional service, with a personalised advice and a written report you can refer back to, can save you both money and headaches.

This article was updated in April 2024 so please see the latest version:

Moving from the UAE to the UK? You need a financial exit plan.

 

If you are unsure as to whether a move to the UK is right for you, I work with a expert counsellor who supports expats in making life decisions. She has the personal experience to give you the guidance to make the right decisions for you and your family. Contact me for a no-obligation referral.

I am a highly-qualified and experienced Independent Financial Adviser with over 30 years of experience, the last 18 in the UAE and prior to that in the UK. I provide a fee-based personal financial planning service to expatriates resident in the GCC. I also comment on all kinds of financial isues in  The National  newspaper and have a regular column where I answer reader  questions. You’ll see my name in other UAE publications from time to time.  My business motto is proper advice for nice people.

Please take a look at the many other useful articles on this website.

 

leaving dubai

 

Need to know: Taxes on UK property

This article has been rewritten and fully updated so please refer to the lastest one, published on 31st July 2024.

Need to know – UK Property Taxes

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Need to know: Leaving Dubai

As most expats leave Dubai after a few years, either to return to a home county, or to move to another country altogether, I have put together a brief guide to some of the issues you need to consider before moving.

Ideally a move should be planned as far ahead as possible, particularly if there are potential tax issues to consider, but even if it happens with little notice there are still steps to take to ensure your move is as painless as possible.

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Information on the UK Statutory Residency Test

A few years ago the UK Government in conjunction with Her Majesty’s Revenue & Customs (HMRC) announced that they would be introducing a new residence test. The intention was to clarify the status of people both leaving and arriving in the UK and there has been considerable discussion regarding exactly how and when to implement this.

The aim originally was to bring these new rules into effect from 6th April 2012, but this has been postponed to 6th April 2013. The purpose of this post is to provide you with an overview of the current proposals, as amended by the draft legislation that was published in December 2012. We are still however, awaiting the final legislation so it is possible the rules could be changed again before they come into force, although we do not anticipate anything major to change. Continue reading