Planning Your Taxes and Trusts in Dubai
Even though professionals living in Dubai benefit from a unique, zero income tax position. Your plan for taxes is just as important as wealth accumulation.
There is a likelihood that your tax burden may change when you repatriate, or depending on your domicile and as your wealth grows. A financial planner can help you to forecast what future tax implications there could be and provide advice on how best to position yourself to minimise these.
The more you earn, the more complicated your tax burden may be, and many senior professionals end up paying a lot more tax than necessary, just because they do not understand their position fully. Taxes can become more complicated when you are living cross -boarder. A good plan ensures that taxes are mitigated as much as possible.
A financial adviser will also take a look at any assets you may have in your home country, or other jurisdictions. Planning for taxes on your entire international portfolio. You may not have considered things such as inheritance tax, capital gains, future income taxes, or lifetime allowance taxes on your pension, for example.
It can sound overwhelming, but it is a financial planners’ role to help you pay as little tax as possible, so that you can enjoy your hard-earned money. One possible way to do that, is to place some of your wealth into suitable trust structures. And with so many different types of trusts to choose from, it is essential you have a financial planner who understands the merits and potential drawbacks of all the options.