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Moving to the United Arab Emirates

This article provides an overview of taxation for United Arab Emirate residents and explains how their Old Mutual international or Old Mutual International Ireland bond will be taxed.

So, having considered all the other things your client needs to do before leaving the UK, you want to know how their offshore bond offered by Old Mutual International or Old Mutual International Ireland will be taxed in their new jurisdiction.

General tax information for United Arab Emirates (UAE) residents

UAE is essentially a tax-free jurisdiction. There is no income tax imposed for individuals or other entities other than for oil companies and branches of foreign banks.

There is also no gift or estate tax, nor wealth tax.

Taxation of our offshore bonds

When taking out a policy, Old Mutual International bonds are subject to law of the client’s country of habitual residence unless we agree to a different law by endorsement. The law of the contract for Old Mutual International Ireland bond will vary, but would have been confirmed, e.g. in the policy terms and condition, when your client applied for the bond.

Premiums paid into the bond

There is no tax relief on premiums paid to the bond.

Switching

There is generally no tax on switching fund within the bond.

Wealth tax (if applicable)

Not applicable.

Assignments and pledges (if applicable)

There is no tax on assigning or pledging the bond.

Part encashment of the bond

There is no tax on partial encashment of the bond.

Total encashment of the bond

There is no tax on total encashment of the bond.

Maturity of the bond (where relevant)

There is no tax on maturity of the bond.

Death of life assured (where relevant)

There is no tax on death of the life assured.

Death of bondholder

There is no tax due on death of the bondholder.

Trusts and nominations

  • There is no UAE trust law but foreign trusts are recognised in UAE for non-UAE nationals.
  • Nominations are recognised in UAE law for non-UAE nationals.
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