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Planning potential move to UAE

Planning potential move to UAE

Old Jul 25th 2021, 7:19 pm
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Post Planning potential move to UAE

Hi all, I've been offered a role in Dubai at an international company and am currently considering whether or not to accept it. Financially it makes sense - I'm single, with no children, and it would be a substantial increase on my gross UK salary. However, I'm mid-career, so I'm not topping up retirement savings or starting out and trying to get international experience, so should my (lack of) exit strategy be a potential area of concern?

I'm leaning towards accepting, but just wondering if there are any hidden pitfalls I should be aware of? Any tax implications for savings and investments made outside the UK when I go back home? I was planning to continue NI contributions to keep my state pension alive.

I've done work trips to GCC countries in my current job, so am aware that clients can be "challenging" in some cases and am expecting to spend several weeks dealing with bureaucracy when I arrive in the UAE. I was planning on renting out my UK flat (assuming the mortgage provider don't mind) and only taking a couple of suitcases and a few essentials with me when I move, leaving it furnished for tenants (and taking most of my junk to the tip or a storage unit). Anything else to watch out for?
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Old Jul 25th 2021, 10:22 pm
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug
Hi all, I've been offered a role in Dubai at an international company and am currently considering whether or not to accept it. Financially it makes sense - I'm single, with no children, and it would be a substantial increase on my gross UK salary. However, I'm mid-career, so I'm not topping up retirement savings or starting out and trying to get international experience, so should my (lack of) exit strategy be a potential area of concern?

I'm leaning towards accepting, but just wondering if there are any hidden pitfalls I should be aware of? Any tax implications for savings and investments made outside the UK when I go back home? I was planning to continue NI contributions to keep my state pension alive.

I've done work trips to GCC countries in my current job, so am aware that clients can be "challenging" in some cases and am expecting to spend several weeks dealing with bureaucracy when I arrive in the UAE. I was planning on renting out my UK flat (assuming the mortgage provider don't mind) and only taking a couple of suitcases and a few essentials with me when I move, leaving it furnished for tenants (and taking most of my junk to the tip or a storage unit). Anything else to watch out for?
Not really sure what you are looking for advice on but rather than focus on tax when you go back …. one thing many overlook is the UK tax liabilities depending on when in the tax year you move out.
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Old Jul 26th 2021, 3:59 am
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug
Hi all, I've been offered a role in Dubai at an international company and am currently considering whether or not to accept it. Financially it makes sense - I'm single, with no children, and it would be a substantial increase on my gross UK salary. However, I'm mid-career, so I'm not topping up retirement savings or starting out and trying to get international experience, so should my (lack of) exit strategy be a potential area of concern?

I'm leaning towards accepting, but just wondering if there are any hidden pitfalls I should be aware of? Any tax implications for savings and investments made outside the UK when I go back home? I was planning to continue NI contributions to keep my state pension alive.

I've done work trips to GCC countries in my current job, so am aware that clients can be "challenging" in some cases and am expecting to spend several weeks dealing with bureaucracy when I arrive in the UAE. I was planning on renting out my UK flat (assuming the mortgage provider don't mind) and only taking a couple of suitcases and a few essentials with me when I move, leaving it furnished for tenants (and taking most of my junk to the tip or a storage unit). Anything else to watch out for?
Everyone I know (expect for one) who left managed to find something at home. The one that didn't had spent 15 years running a school. You need an Exit strategy but it's not the end of the world. I think it's somewhat dependant on the industry you are in.

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Old Jul 26th 2021, 8:28 am
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Default Re: Planning potential move to UAE

Thanks for the replies
Originally Posted by UKMS
Not really sure what you are looking for advice on but rather than focus on tax when you go back …. one thing many overlook is the UK tax liabilities depending on when in the tax year you move out.
I was mainly trying to think if there's anything obvious I've forgotten to look into. The UK tax situation for the tax year I leave in sounds like it's more complicated than I'd appreciated, so I'll definitely have to look into it a bit more. It seems that provided I spend a full tax year overseas for 22/23 and stay within the allowable number of days back in the UK I'd be eligible for the split year treatment for this tax year, but given the number of pages on HMRC's website about it I expect it's not that simple

Originally Posted by Millhouse
Everyone I know (expect for one) who left managed to find something at home. The one that didn't had spent 15 years running a school. You need an Exit strategy but it's not the end of the world. I think it's somewhat dependant on the industry you are in.
That's good to know. Similar roles do exist in the UK, so although it might take me a bit of time to find something suitable it wouldn't be impossible, particularly if I don't mind taking a bit of a pay cut when I get back.
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Old Jul 26th 2021, 11:29 am
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug
Thanks for the replies

That's good to know. Similar roles do exist in the UK, so although it might take me a bit of time to find something suitable it wouldn't be impossible, particularly if I don't mind taking a bit of a pay cut when I get back.
That's kind of the point. Even if you "grow" here you will not grow back home at the same rate. Budget 6-12 months for a job on your return.

On tax - leaving is simple. Returning isn't. You need to time it right or be faced with a tax bill you probably cannot afford.
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Old Jul 26th 2021, 12:06 pm
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Default Re: Planning potential move to UAE

Why is returning difficult? Split year treatment should mean you only pay tax from when you're deemed resident in the UK. So unless you accidentally trigger residency before you expected, it should be fine.
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Old Jul 26th 2021, 8:28 pm
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Default Re: Planning potential move to UAE

Originally Posted by Millhouse

On tax - leaving is simple. Returning isn't. You need to time it right or be faced with a tax bill you probably cannot afford.
leaving also catches many out who think they are tax free as soon as they step off the 380.
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Old Jul 27th 2021, 5:12 pm
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug

That's good to know. Similar roles do exist in the UK, so although it might take me a bit of time to find something suitable it wouldn't be impossible, particularly if I don't mind taking a bit of a pay cut when I get back.
It's not so much finding comparable roles, it's finding a comparable salary, which doesn't exist due to taxes. I gather that salaries in the UAE are somewhat coming into line with western expectations (usually a UK salary plus school fees, the "gain" is tax free) but for a long time salaries were indeed quite a bit higher for comparable roles. I first came to Dubai in the same role but with a 50% uplift + housing allowance + tax free. It was winning the lottery.

Seeing 40%+ of your income go in taxes is the painful bite people face upon returning home.


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Old Aug 2nd 2021, 11:21 am
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Default Re: Planning potential move to UAE

Originally Posted by DXBtoDOH
It's not so much finding comparable roles, it's finding a comparable salary, which doesn't exist due to taxes. I gather that salaries in the UAE are somewhat coming into line with western expectations (usually a UK salary plus school fees, the "gain" is tax free) but for a long time salaries were indeed quite a bit higher for comparable roles. I first came to Dubai in the same role but with a 50% uplift + housing allowance + tax free. It was winning the lottery.

Seeing 40%+ of your income go in taxes is the painful bite people face upon returning home.
Dubai is really hit and miss at the moment, lots taking pay cuts to stay and avoid KSA. New people arriving not getting the levels of those with more experience etc.

I still get 40% more than my boss earns (gross) in the UK, so that's all that matters.
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Old Aug 5th 2021, 2:20 pm
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug
Hi all, I've been offered a role in Dubai at an international company and am currently considering whether or not to accept it. Financially it makes sense - I'm single, with no children, and it would be a substantial increase on my gross UK salary. However, I'm mid-career, so I'm not topping up retirement savings or starting out and trying to get international experience, so should my (lack of) exit strategy be a potential area of concern?

I'm leaning towards accepting, but just wondering if there are any hidden pitfalls I should be aware of? Any tax implications for savings and investments made outside the UK when I go back home? I was planning to continue NI contributions to keep my state pension alive.

I've done work trips to GCC countries in my current job, so am aware that clients can be "challenging" in some cases and am expecting to spend several weeks dealing with bureaucracy when I arrive in the UAE. I was planning on renting out my UK flat (assuming the mortgage provider don't mind) and only taking a couple of suitcases and a few essentials with me when I move, leaving it furnished for tenants (and taking most of my junk to the tip or a storage unit). Anything else to watch out for?
It's always prudent to have an exit strategy no matter how long you stay - keep key relationships alive back home, make sure you get properly qualified advice on savings and investments (and don't accept advice from cold callers). There's no real security as an expat - especially in the first few years.

If you want to be very cautious keep the door open to go back for the first six months. Live lean when you arrive and resist the temptation to treat it like a holiday in the sun. The most common mistake I have seen in two decades is people arriving and spending a ton of money to get set up nicely (and having mini holidays every time they go out to drink and eat) while shutting doors back home, then finding their role is made redundant or isn't what was promised (which is not uncommon and you can rarely do much about it unfortunately...).

N.

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Old Aug 6th 2021, 11:07 pm
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Default Re: Planning potential move to UAE

Sorry for disappearing, it's been a hectic few days. Thanks for all the posts, I'm going to accept the offer, so (barring any unexpected visa issues) I'll be joining you all in a month or two. Think I've managed to get my head round all the tax issues now as well.

I'm going to try and leave my current employer in as friendly a way as is ever possible with these things, just in case things don't work out. Got lots to do over the next few weeks, but looking forward to the move. Just have to work out how to make sure my money stays in my bank account rather than being spent on hotel brunches and overpriced beer now.

Originally Posted by Norm_uk
It's always prudent to have an exit strategy no matter how long you stay - keep key relationships alive back home, make sure you get properly qualified advice on savings and investments (and don't accept advice from cold callers). There's no real security as an expat - especially in the first few years.

If you want to be very cautious keep the door open to go back for the first six months. Live lean when you arrive and resist the temptation to treat it like a holiday in the sun. The most common mistake I have seen in two decades is people arriving and spending a ton of money to get set up nicely (and having mini holidays every time they go out to drink and eat) while shutting doors back home, then finding their role is made redundant or isn't what was promised (which is not uncommon and you can rarely do much about it unfortunately...).

N.
Sounds like good advice. As you say, there's not much you can do if it turns out the role you were promised is actually something completely different. I've got a decent feeling in my gut about this one, but I've been wrong often enough in the past that I'm not taking anything for granted and am prepared to crawl back with my tail between my legs. Hopefully it doesn't come to that though, but I'll try to stay in touch just in case.
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Old Sep 5th 2021, 5:58 am
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Default Re: Planning potential move to UAE

Originally Posted by Sand Slug
Sorry for disappearing, it's been a hectic few days. Thanks for all the posts, I'm going to accept the offer, so (barring any unexpected visa issues) I'll be joining you all in a month or two. Think I've managed to get my head round all the tax issues now as well.

I'm going to try and leave my current employer in as friendly a way as is ever possible with these things, just in case things don't work out. Got lots to do over the next few weeks, but looking forward to the move. Just have to work out how to make sure my money stays in my bank account rather than being spent on hotel brunches and overpriced beer now.


Sounds like good advice. As you say, there's not much you can do if it turns out the role you were promised is actually something completely different. I've got a decent feeling in my gut about this one, but I've been wrong often enough in the past that I'm not taking anything for granted and am prepared to crawl back with my tail between my legs. Hopefully it doesn't come to that though, but I'll try to stay in touch just in case.
good luck - keep us updated how it goes!
I’m a Brit in Canada and am looking to move to Dubai with my current company, so v.interested in your story. I’ve actually currently been in Dubai for the past few days on a fact-finding mission. My wife and I know Dubai fairly well (been here a fair bit) and have a bunch of friends out here. Every single one has been telling us to make the move!
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Old Sep 5th 2021, 10:51 pm
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Default Re: Planning potential move to UAE

Originally Posted by Paz7
good luck - keep us updated how it goes!
I’m a Brit in Canada and am looking to move to Dubai with my current company, so v.interested in your story. I’ve actually currently been in Dubai for the past few days on a fact-finding mission. My wife and I know Dubai fairly well (been here a fair bit) and have a bunch of friends out here. Every single one has been telling us to make the move!
If you can get an internal move on good terms it could work well for you …. Depending on your company it allows you to settle a lot quicker ….. this is how I moved over.
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