Financial Management Tips for Self Employed

With huge salary packages and relaxed taxation rules, Dubai allures a number of expats every year.  A lot of people move to Dubai, in order to experience the luxurious life they have always desired. However, even though the perks are incomparable to any other nation, life is good in Dubai only as long as you have enough to spend. But, as we know, working life doesn’t last forever. At a certain point of time, you will want to retire so as to relax and spend time with your loved ones. And, to have a comfortable and relaxing life after retirement, it's important for you to take finance management into consideration right now.

Since financial planning in Dubai is of utmost importance, here are a few tips that will help you set out a perfect financial plan. Check them out!

Plan your retirement

Since most of the companies in Dubai and other UAE cities do not provide pensions to their superannuated employees, it may become difficult for expats to survive after retirement. Therefore, setting up a retirement plan is the first step towards an effective financial planning in Dubai.

If you’re a working expat in the UAE, it’s high time you start investing your money wisely, taking your post-retirement goals and responsibilities into consideration. In case, you have already invested in a pension plan in your home country you may also get it transferred, provided the plan is a Qualifying Recognised Overseas Pension Scheme.

Take a look at your current insurance policy

Typically, an insurance policy opted out in one’s home country will become invalid if he or she becomes a resident in the UAE. Therefore, if you are an expat, it is important to check if your insurance policy covers you in your new jurisdiction. Specific expatriate insurance policies can be opted. These policies are so designed that they cover financial as well as other losses incurred by expatriates while living overseas. 

Get your will recognized

Known to everyone, inheritance and tax norms vary from country to country. Since different nations have different laws regarding inheritance, property and tax, the importance of ensuring a valid will can’t be denied. It is advisable that you analyse the implications of your residency status in your home country. This will help you understand how your will would be executed. 

Thus, for successful financial planning in Dubai, as an expat, you must confirm whether your will is recognised in the jurisdiction in Dubai or not. If not, you must get it recognized as per the norms.

Be wary while investing in property

If you’re working in Dubai, investing your savings in property will surely be your choice; zero property charge is the reason. 

However, if you are an expat, be wary while buying property. This is because, if you own property in your residential country, getting a mortgage in your domiciled country may become somewhat harder. Similarly, if you don’t have a good credit history in your domiciled country, it may become difficult to get property in your residential country. 

Don’t underestimate offshore bank accounts

If you are an expat working in Dubai or any other city in the UAE, there are chances that the government may freeze your accumulated wealth or bank accounts on account of your death or a mishap. This will leave you with no money. Thus, it is advised to have an offshore bank account that can help you in times of emergency. In addition, the offshore bank account also offers a high interest on your overseas earnings.

However, on the other hand, if you are moving back to your domiciled country ensure that you close your offshore bank account because you don’t want to pay huge taxes. In certain cases, as an expat, you may also need to provide evidence to prove that you are not a resident in your home country. This is required to avoid taxation there while domiciled overseas.

Planning your finances is analogous to planning a journey. There is a destination in mind and some idea of how to get there; you just need a map and a planner to help you with the finer details. Same is with financial planning. You have a goal and an idea. Just follow the above tips to give a path to your ideas.