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• How to open a bank account in the UAE
• Popular banks in the UAE
• What’s the tax system in the UAE?
• Income tax on salaries in the UAE

To open a bank account in the UAE, you must first be in the country. UAE law dictates that account holders must physically present themselves at the bank in order to confirm their identity and sign documents.

The only way to open an account and not be physically present is by banking with a large international institution that operates in the UAE, such as or , and visiting your local branch. Dubai also allows the hiring of financial officers to be present on your behalf, but this is not accepted at every bank.

The most important document is your residence visa, which can take several weeks to obtain. Until you receive your residence visa, however, you can open a savings account.

Requirements to open a bank account as a non-resident

The UAE allows expats without residence visas to open only a savings account. Most banks will issue an ATM card so that users can withdraw money while they wait for their residency visa. Requirements to open a bank account as a non-resident vary from bank to bank, but in general these are the documents you’ll need to provide:

• passport photo
• completed application form
• passport with the UAE entry stamp (original and copy) or
• proof that your residency visa, or Emirate ID card, is being processed
• sources of funds (document stating your employer’s name and salary details etc.)
• bank reference letter from previous bank
• letter of No Objection Certificate (NOC) from either your sponsor or employer

As a non-resident, you may be subject to a minimum or maximum balance for specialized or restricted accounts.

Requirements to open a bank account with a residency visa

Once you have your residency visa, you can open a personal bank account or a business bank account. A personal bank account is also called a current account. Like with the savings account, requirements vary from bank to bank, but the standard required documents to open a bank account are:

• your passport with your UAE residency visa (original and copy)
• your Emirates ID card (original and copy)
• documentation of residency in the UAE (this can be a rental agreement, utility bill, or letter of employment)
• and either a salary letter from your employer, an original trade license if you are self-employed, or your spouse’s labor card/work ID (original and copy) if you are on their sponsorship

In addition to these documents, banks may also require you to deposit a certain amount to open an account. On average, banks in the UAE will require between 3,000–5,000 AED (approx. 820–1,360 USD).

Requirements to open a business bank account

Be aware that some banks may require a high minimum balance, and without a residency visa the account will be treated as “non-resident”, and therefore have certain limitations.

To open a business bank account in the UAE, you must provide the following required documents:

• passport (with residency visa) of the company’s shareholder representative
• copy of the Emirates ID card of the shareholder representative
• passport copy of the company director
• information about the type of activities on the account
• disclosure of the source of funds
• existing contracts
• reference letters from business partners
• business plan
• full set of certified company incorporation documents:
  • memorandum and articles
  • certificate of incorporation
  • shareholders registry
  • company extract (from the official company’s registry)
  • certificate of good standing

The director of the company or a major shareholder must be physically present when opening the business bank account. It’s sometimes but not always possible for a lawyer to do this on their client’s behalf.

Things to know about banking in the UAE

• Some banks include both a bank fee and a minimum deposit. While the minimum deposit is usually high, monthly maintenance fees are not. You can expect to pay around 25 AED (approx. 7 USD) per month if you choose to bank with a company that charges fees.

• Some UAE banks offer no-fee accounts only to expats earning over 5,000 AED (approx. 1,400 USD) per month; those who earn less may pay monthly fees. Check with your bank for details.

• You may be charged a fee to use an ATM not associated with your bank. Check with your bank for more details.

• All UAE banks offer Sharia-based accounts that follow Islamic laws and banking principles. These accounts earn no interest and have complicated arrangements for mortgages and loans.

Here are some of the popular and most used banks by expats in the UAE, many of which are commercial banks.

Popular local banks in the UAE

Best international banks in the UAE

Best online banks in the UAE

Although opening a UAE bank account online as a non-resident is not possible because of the need to physically go into the bank, these are the best UAE online banking options and apps:

Best savings account in the UAE

The UAE’s promise of a “tax-free” life is what drives many expats to relocate to the Gulf country. But what does “tax-free” really mean?

Explaining the tax system in the UAE

The first thing you must know about taxation within the UAE is that there is no federal tax, personal tax, or capital tax. The UAE is made up of seven autonomous emirates, each with its own government and tax regulations. As a nation, the UAE does not impose a singular, overarching federal tax. Instead, each emirate sets its own income tax.

That being said, most emirates follow similar tax rules and regulations, with a few minor variations. Expat workers are treated exactly the same as Emirati workers and therefore are not subject to any special expat schemes.

Types of taxes in the UAE and their tax rate

Rental tax: Rental taxes will apply when renting in any of the emirate states. In Dubai and Abu Dhabi, expats can expect to pay around 5% annually for any property that they rent.

Corporate tax: Corporate taxes in the UAE largely apply to most businesses. Gas and oil companies are subject to a 55% tax rate applied to their profits. General standard businesses pay 0% on income up to AED 375,000 (approx. 102,000 USD) and 9% on any income above.

Value added tax (VAT): The UAE imposes a Value Added Tax of 5%. This tax goes towards public services in the UAE.

Excise tax: This taxes goods that are considered harmful to human health. For example, in Dubai, carbonated drinks receive excise tax rates of 50% and tobacco receives 100%. Dubai businesses can .

Perhaps the biggest factor making the UAE one of the most popular expat relocation destinations is income tax. The UAE does not levy taxes on individuals. Whether you’re an Emirati national or an expat resident, there’s no salary tax within the UAE. This is standard across all seven emirates.

Where expats may face income tax is with their home country. The UAE has tried to avoid this by entering into the Avoidance of Double Taxation Agreements (DTA) with several other countries. To see the full list of countries who have this DTA agreement, check the .

If you’re still unsure whether double taxation will affect you, consult a tax advisor for more information.

Self-employed taxes in the UAE

Because there is no income tax in the UAE, there is no self-employment tax either. However, depending on your line of work, as a self-employed person you are also considered a business, and this business may be subject to a tax if you are not within a free zone.

Free zones

Part of the UAE’s tax-free scheme comes from free zones. Free zones are sector-specific business areas governed by their own regulatory authorities. These zones were created to make the UAE more attractive to foreign investors and offer wealth benefits to those who choose to set up their business within the Gulf nation. Business owners within these free zones enjoy such benefits as:

• 100% ownership
• 100% exemption from import and export tax
• 0% corporate and income tax (until profit exceeds 375,000 AED (approx. 102,000 USD)

As stated before, outside of a free zone there is still no income tax within the UAE. However, depending on your business, there may be corporate tax.