Hi Five

Hi folks, thinking ahead of my move from UK to Riyadh.......2 questions :

1. Once I have organised by Work Visa.... and then Iqama......

will my Iqama be my key to opening a local bank account ?

2. And on a second point, my UK HSBC bank informs me that they will charge me for international bank transfers and cash withdrawals (unless I open up a bank account that charges £150 per year for free international withdrawals etc)....are there any UK banks offering free international banking ?

Thanks in advance ...........

coffindodger

As part of the lifestyle here you do need to open up a local banks account. for those people on permie contract, for contractors then its different.
As a permie here in the costa del sand pit , all of this is done by your company and of little hassle to you.

I use Hsbc back in the uk and only send an amount back a couple of times a year and you get connen by both parties here the local bank charge you and the hsbc uk charge you for admin fees !!.
Your Iquama is the key to every thing here with out one its hard to get any thing done. Mind you some days even with one its hard to get things done ha ha joking !!

Bijilo123

I found that Bradford and Bingley International were a good offshore bank which I used to transfer money into from Gulf bank in Kuwait. It allows free transfers into the UK banking system. You MUST close the account before returning to the UK permanently which is both a bank rule and strongly advised for tax purposes.

As with all ofshore banks, it is a bit of a hassle to get started but thereafter it is very easy.

On the topic of money you should get up to speed on the rules on residency and taxation issues within the UK. I suspect you will be going to KSA early in TY 10/11 which means your stay needs to be until 6 April 2012 or you'll get UK taxed on your Saudi earnings.

flares

get your iqama and then get a personal acct with SABB (Saudi Arabian British Bank part of HSBC)

norsk

If you have a SABB account there is no charge to transfer to other accounts in the HSBC network by the way. I have a UK HSBC account, and I'm opening a Bahrain HSBC (ie offshore savings account) to cover all my options..

To withdraw money from your UK account costs you dearly unless you get a prepaid creditcard like CaxtonFX (no fees to withdraw, good exchange rates, fill it up from your UK account over t'internet). Sorry for the blatant advertising, but more people really should use this..

Mardy

Anyone know if any of the local banks have links/are part of the RBS group? Or Nationwide?
I'm waiting to sign my offer letter so I ill be in Riyahd soon and I will be wanting to send money back monthly so I don't want to pay two sets of fees every time...

Hi Five

Thanks for the all the good advice.

I'll expect to be in KSA for 3 years, and my UK company have organised for me to meet with Tax Experts before I go out re: tax and residency... but if I understand Bijilo123, I have to complete a tax year in KSA to avoid UK tax ?

coffindodger, I did not think about local banking charges for transfers to the UK. My salary will be paid split between a local account in SAR, and UK bank account. So I hope I have minimum transfers between the two accounts ??

I'll prob go for the SABB accounts as its HSBC.

I did have a UK bradford & bingley account that I have just closed as they now operate and are owned by Satander (?) etc.

Just looked up the CaxtonFX card, seems like a good backup to have !

Just hope my Saudi employer supports me in these setup processes !!

coffindodger

Just a thought if you are getting your salary into 2 banks, are you in an aviation type job here in riyadh.
So yes you have to do 1 COMPLETE UK TAX YEAR That is April - April.
Also fill out all the paperwork form 85 before you leave the uk.
Yes you can go back for holls etc but be carefull.
When i went back some 10 year ago the tax people even asked me for my flight tickets details for my return flight.
so do not give them any thing to start digging or you may end up up in deep poo.

Hi Five

I'll be working for an Saudi branch of a Eurpoean International Company, and they calculate a salary payment into a local bank ac to cover living expenses, and the balance into UK account..

Thanks for tip on Taxation.

norsk

I just found out yesterday that the 'no fee if transferring within the hsbc network' might not be strictly correct. It was explained to me as a fact in the past, but apparently it has not been confirmed by the guy in question yet.

So I don't know basically. I'm waiting for my SABB account to be opened and when it is I'll ask them what the deal is.

Until then I bow my head in shame for posting what is essentially a rumour..

Hi Five

..I think you might be correct ?

I used my HSBC card for an SABB ATM withdrawal in Riyadh in Dec-09. Just checked my HSBC statement and they charged me £5 for the withdrawal !

Anyone aware of a bank that offers free international bank transfers ..... ?

norsk

Mind you that's not the same thing. They could easily charge for ATM withdrawals but not for international transfers..

Hi Five

....did think that might be the case ?...thanks for an update once you've got your SABB account sorted....

PS .... HSBC do an account (called 'Account Plus' I think), where a fixed £13 monthly fee is charged, and services include no international banking charges.