04.27.2020

Wealth Planning: Leaving Your Wealth In The Middle East in 2020

Share

Financial success creates the need for wealth planning. This is particularly true for people who have built their wealth in the Middle East.

Here is a typical sequence of events:

  • Move to the Middle East and earn money (often in a low or no tax jurisdiction)
  • Return home when it’s time to retire
  • Discover that everything is taxed there
  • Scramble to set up structures in the home country

But leaving the Middle East without first creating a structure and doing some wealth planning can be very costly.

The Double Tax Problem

Often, expats wish to return to their home country for retirement. Inspired to protect their wealth, they form various entities in their home country for asset protection and estate planning purposes.

But many are surprised to learn that their home country taxes assets not only when they are placed inside of a structure but also when they are distributed.

These unexpected taxes can impact both current and future generations. Without enough cash on hand, assets must be sold to cover the taxes.

RAKICC Foundations

Thankfully, there is a solution to this double tax problem.

You can achieve your asset protection goals and be tax-efficient with your estate planning with a RAKICC Foundation.

Ras Al Khaimah International Corporate Centre (RAKICC) is a Corporate Registry responsible for the registration and incorporation of International Business Companies.

In early 2020, new legislation regarding foundations was finalized.

RAKICC Foundations are at the cutting-edge of foundation law globally.

Potential Benefits Of RAKICC Foundations:

  • Strong asset protection
  • No UAE taxes when assets are transferred to a foundation
  • No UAE taxes when assets are distributed from a foundation
  • No UAE taxes on the income produced by assets inside a foundation
  • Enhanced flexibility with your estate planning
  • Affordable set-up costs
  • No capital contribution requirements
  • Low ongoing administrative costs

The benefits of RAKICC foundations are most easily achieved by people that are already located in a tax-free country. Complications arise for individuals located in countries that tax individuals and businesses.

The UAE Has Many Benefits Over Competing Jurisdictions:

  • Tax treaties with most major countries
  • Banking is easy
  • Good reputation in the international business community
  • Smart and talented labor pool
  • Multiple flights to and from all major cities
  • Strong infrastructure
  • Administratively easy and cost effective to relocate employees
  • Attractive destination for employees (0% personal income tax)

These factors and several others make it easy and cost effective to comply with various “economic substance” regulations.

Sharia Law

RAKICC Foundations are only subject to Sharia Law if desired.

Want Help Forming A RAKICC Foundation?

Schedule a consultation and we can begin figuring out how to achieve your goals.

Related Posts

09.28.2022

Can I Put My Money In Foreign Trusts?

Can I Put My Money In Foreign Trusts?
09.22.2022

How To Reduce Your Expatriation Exit Tax

How To Reduce Your Expatriation Exit Tax

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]