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Again... Banking questions...

Again... Banking questions...

Old Jul 23rd 2009, 8:23 pm
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Default Again... Banking questions...

Hi,

in a thread from June, Zico2009 (thanks a lot by the way!) advised to keep two accounts, a local and a global one... And there was also some indication that one has to be prepared for occasional trouble with local accounts...

Am not yet in Dubai, but signed the contract, and wonder how to organise the finances in the best way... My initial plan was to have a local account, but keeping also my German one and monthly sent the amount I am able to save (theoretically there should be an amount I am able to save ) back to Germany.

Based on Zico2009's statement, I did check HSBC offshore accounts and the interest they are paying is nothing to get excited about... Would get much more interest in Germany as I know the market here (while being 3 years in the Philippines, I did check my finances online and never had any problems).

And being over there in Dubai, the interest will be not applicable for taxation (as long as I am residing at least 180 days a year outside Germany...). Ok, the disadvantage could be in case I return to Germany, the interest from my Dubai savings would be taxed...

Ok, but getting to the point(s)...
Can someone give me a hint or any other reasons why to choose an offshore account?
Does anyone have an economic way of transfering money internationally, or more precisly back to UK, the Netherlands (or maybe even Germany)?

Thanks a lot in advance... Am enjoying the German rainy season which is called 'summer'...
Monsoonhunter
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Old Jul 23rd 2009, 9:09 pm
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Default Re: Again... Banking questions...

"Can someone give me a hint or any other reasons why to choose an offshore account?"

yes. generally it's viewed as being safer keeping your money somewhere else....
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Old Jul 24th 2009, 11:23 am
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Default Re: Again... Banking questions...

Hmmm... But would it be safer comapred to an account in Germany...? Thought the main reason to have an off-shore account would be tax issues?
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Old Jul 24th 2009, 1:08 pm
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Default Re: Again... Banking questions...

Originally Posted by Monsoonhunter View Post
Hmmm... But would it be safer comapred to an account in Germany...? Thought the main reason to have an off-shore account would be tax issues?
In Dubia, one of the main reasons to have an offshore account is, no matter what happens here, you still have access to cash via your offshore account. If you borrow money or have credit card in dubai and you lose your job, there is a chance that your bank accounts will be frozen.

Also, if you have dependants in the UAE and you die, your account WILL be frozen even if you have no debts. What then do your dependants live on?
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Old Jul 24th 2009, 2:10 pm
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Default Re: Again... Banking questions...

Originally Posted by Roadking View Post
In Dubia, one of the main reasons to have an offshore account is, no matter what happens here, you still have access to cash via your offshore account. If you borrow money or have credit card in dubai and you lose your job, there is a chance that your bank accounts will be frozen.

Also, if you have dependants in the UAE and you die, your account WILL be frozen even if you have no debts. What then do your dependants live on?
I always wondered, as I didn't borrow money anyway but still, will all your accounts be frozen or just the one where your salary is being transfered to?

If you have an account with a totally different bank, how will they ever know?
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Old Jul 24th 2009, 7:47 pm
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Default Re: Again... Banking questions...

Originally Posted by Monsoonhunter View Post
Hi,

in a thread from June, Zico2009 (thanks a lot by the way!) advised to keep two accounts, a local and a global one... And there was also some indication that one has to be prepared for occasional trouble with local accounts...

Am not yet in Dubai, but signed the contract, and wonder how to organise the finances in the best way... My initial plan was to have a local account, but keeping also my German one and monthly sent the amount I am able to save (theoretically there should be an amount I am able to save ) back to Germany.

Based on Zico2009's statement, I did check HSBC offshore accounts and the interest they are paying is nothing to get excited about... Would get much more interest in Germany as I know the market here (while being 3 years in the Philippines, I did check my finances online and never had any problems).

And being over there in Dubai, the interest will be not applicable for taxation (as long as I am residing at least 180 days a year outside Germany...). Ok, the disadvantage could be in case I return to Germany, the interest from my Dubai savings would be taxed...

Ok, but getting to the point(s)...
Can someone give me a hint or any other reasons why to choose an offshore account?
Does anyone have an economic way of transfering money internationally, or more precisly back to UK, the Netherlands (or maybe even Germany)?

Thanks a lot in advance... Am enjoying the German rainy season which is called 'summer'...
Monsoonhunter
If you intend to remain in Dubai for a while (say 1 or more years), then you will not be a resident of Germany for tax purposes.

I have a bank account in Dubai but have kept open my bank accounts in Scotland and Australia. So, in Germany, you could have two accounts one for cheques and one paying high interest. You can then, via internet banking, transfer amounts from Dubai to the cheque account and then some of the money for saving into the high-interest account, or pay directly from Dubai to the high-interest account. I don't think you need an offshore account...well I haven't needed one.

Best ask someone else about the most efficient way to transfer money back to Germany, though...I just use my Dubai bank.
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