Saving Money

Old Jul 28th 2008, 11:20 pm
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Question Saving Money

Hi,

As a general perception, people living and working in MiddleEast are saving money.How much money you really can save in Muscat,Dubai,AbuDhabi etc.

People in US say they cannot save money because of taxes , insurances etc.

Please comment...

Thanks
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Old Jul 28th 2008, 11:29 pm
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Default Re: Saving Money

Originally Posted by smurtaza View Post
Hi,

As a general perception, people living and working in MiddleEast are saving money.How much money you really can save in Muscat,Dubai,AbuDhabi etc.

People in US say they cannot save money because of taxes , insurances etc.

Please comment...

Thanks
As a general perception....I disagree.
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Old Jul 29th 2008, 1:13 am
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Question Re: Saving Money

Originally Posted by Ozzidoc View Post
As a general perception....I disagree.
Is it true that $5K (tax free in MiddleEast) is equal to $8K US salary.But I am confused because in US and Canada there is a concept of family income tax benefit....In some circumstances the govt. may return all or some part of the income tax paid and salaries are higher as well as compared to Muscat.
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Old Jul 29th 2008, 3:43 am
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Default Re: Saving Money

Originally Posted by smurtaza View Post
Is it true that $5K (tax free in MiddleEast) is equal to $8K US salary.But I am confused because in US and Canada there is a concept of family income tax benefit....In some circumstances the govt. may return all or some part of the income tax paid and salaries are higher as well as compared to Muscat.
Sounds like you need to research the north american tax system. Try giving the respective agencies a call, as i'm sure they will be able to help.

When it comes to saving - it sounds obvious but you do need to look at how much you earn/ versus how much you spend. Do you have an idea on what you would be earning and also the cost of housing in Muscat. In the UAE it's the housing that tends to eat into people's possible saving opportunity.
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Old Jul 29th 2008, 4:17 am
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Default Re: Saving Money

Originally Posted by al dente View Post
Sounds like you need to research the north american tax system. Try giving the respective agencies a call, as i'm sure they will be able to help.

When it comes to saving - it sounds obvious but you do need to look at how much you earn/ versus how much you spend. Do you have an idea on what you would be earning and also the cost of housing in Muscat. In the UAE it's the housing that tends to eat into people's possible saving opportunity.
In Australia I am living with my 2 kids .I was earning $80K (permenant) but since I was a single earner I was getting Family income tax benefits.But in Muscat the salary offered is $35K(tax free)+benefits.Now its hard to decide which option is better?
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Old Jul 29th 2008, 4:34 am
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Default Re: Saving Money

Originally Posted by smurtaza View Post
Hi,

As a general perception, people living and working in MiddleEast are saving money.How much money you really can save in Muscat,Dubai,AbuDhabi etc.

People in US say they cannot save money because of taxes , insurances etc.

Please comment...

Thanks
I save about £600 a month mate, and send it back home for my accounts / credit cards.

I could easily do more but quite enjoy spending it over here....
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Old Jul 29th 2008, 5:33 am
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Default Re: Saving Money

I can assure you that plenty of people in the UAE are saving money on an ongoing basis. Remember however that Brits, Aussies and many other nationalities can live here without paying any income tax, whereas American citizens still pay tax on earnings over USD86,000 per annum.

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Old Jul 29th 2008, 5:42 am
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Default Re: Saving Money

Originally Posted by Meow View Post
I can assure you that plenty of people in the UAE are saving money on an ongoing basis. Remember however that Brits, Aussies and many other nationalities can live here without paying any income tax, whereas American citizens still pay tax on earnings over USD86,000 per annum.

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do they?? why?
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Old Jul 29th 2008, 6:22 am
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Default Re: Saving Money

Originally Posted by Spugsy View Post
do they?? why?
Well they don't have a choice! Once the IRS gets hold of a person they never let go...

Seriously, that's the rule for US citizens.


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Old Jul 29th 2008, 6:53 am
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Default Re: Saving Money

Originally Posted by smurtaza View Post
Hi,

As a general perception, people living and working in MiddleEast are saving money.How much money you really can save in Muscat,Dubai,AbuDhabi etc.

People in US say they cannot save money because of taxes , insurances etc.

Please comment...

Thanks
Although it's true that an American pays taxes everywhere on this planet, there are exemptions to that rule. Every person that carries a Duo nationality can apply for a 0% taxing with the IRS if he or she can prove that taxes are paid elsewhere, or if he or she works in a tax free environment like the Middle East.Never heard of the (famous) Danish Lady that on paper is registering thousands of wealthy people as living in the UAE or Oman or Bahrain? It's a tax trick as these countries don't register your physical address like in Europe.

For a Dutch national, with tax free status at home (none resident status) the money earned in the years working outside of Holland remains tax free. Only the so called fortune tax is paid on it witch is peanuts. And if you want to avoid even that? Put it into a so called Swiss Pension Fund. Even after returning to Holland the income remains completely tax free.

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Old Jul 29th 2008, 7:09 am
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Default Re: Saving Money

Originally Posted by Dutchie View Post
Although it's true that an American pays taxes everywhere on this planet, there are exemptions to that rule. Every person that carries a Duo nationality can apply for a 0% taxing with the IRS if he or she can prove that taxes are paid elsewhere, or if he or she works in a tax free environment like the Middle East.
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Dutchie - I have just done a quick Google but can't find anything on the above. Whereabouts is this dual national (in my case US/UK) tax exemption rule stated?

Thanks indeed for any further info.
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Old Jul 29th 2008, 7:29 am
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Default Re: Saving Money

Originally Posted by Bonny Boy View Post
Dutchie - I have just done a quick Google but can't find anything on the above. Whereabouts is this dual national (in my case US/UK) tax exemption rule stated?

Thanks indeed for any further info.
You can apply for it via the USA embassy in London (I think it's there). I did the same years ago in Amsterdam. Takes about one month to get it. If you have built up pension points in the USA you can apply at the same time to have this money (on a monthly basis) transfered into a UK account once you reach the pension age. I would advise to start this up as soon as possible, because it is a very time consuming process.

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Old Jul 29th 2008, 7:39 am
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Default Re: Saving Money

Originally Posted by Bonny Boy View Post
Dutchie - I have just done a quick Google but can't find anything on the above. Whereabouts is this dual national (in my case US/UK) tax exemption rule stated?

Thanks indeed for any further info.
What you need is :

(A) Your USA passport, do not, I repeat, do not bring two passports into the embassy, you will be up shit creek if you do that.

(B) Your social security card. (Or proof you never applied for one)

(C) You need a statement from the UK Tax office stating that you have up until today paid all taxes due in the UK.

(D) You have to prove that the tax rate(s) you are paying in the UK are higher then the ones in the USA.

(E) I just hope you never registered with a US Embassy in the Middle East while working and living there, otherwise forget the 0% taxing status

(F) There should be a tax data exchange agreement between the UK and US (Don't know about that one, you need to check it yourself as I'm Dutch)

Dutchie

Last edited by Dutchie; Jul 29th 2008 at 7:46 am.
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Old Jul 29th 2008, 7:45 am
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Default Re: Saving Money

Originally Posted by Meow View Post
Well they don't have a choice! Once the IRS gets hold of a person they never let go...

Seriously, that's the rule for US citizens.


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ha, serves them right...
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Old Jul 29th 2008, 7:53 am
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Default Re: Saving Money

If your priority is saving you'll save even if it's only AED500 a month. If your priority is nice cars, a house in an "in" place and nights out on the town every week you might struggle to save anything even on a bigger income.

The same rules apply in every country pretty much. People are saving lots of money after tax in western countries and people are in heavy debt here with nothing to show for it on tax free incomes.

So the answer is yes and no depending on your priorities.

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