Ownership and Transferring Features of Various Foreign Financial Assets

A foreign company can be used effectively by foreign citizens for owning various assets. These assets include real estate assets in the UAE and abroad, financial assets (bank accounts) in different countries, securities, shares of other companies, ownership rights, trademarks, etc., in a word, every possible asset a foreigner can owe.

The purpose of such holding over a foreign company can be as follows:

• Ensuring the assets protection for a foreigner;
• The possibility of more effective work with foreign partners;
• Addressing the issues of inheritance for a foreigner;
• Tax optimization at the various levels of business for foreigners;
• The consolidation of cash flow and its optimal usage for foreigners.

There are different jurisdictions with its own advantages and disadvantages regarding assets protection. The UAE offers great options for asset protection; there is the possibility of registering companies with the 100% foreign participation for owning of the various assets – both in the UAE and abroad. The important thing is that the company in the UAE may be both offshore and local. At the same time, both of them are exempted from taxes, what is particularly reliable and attractive solution for asset protection.

How to transfer assets abroad for a foreigner?

Nowadays the transferring of financial assets abroad or between group companies is not something unusual, and such operations are conducted by foreigners not to “launder” assets or hide income, they do not contradict tax legislation. The unstable economic situation, currency fluctuations and the instability of banks in developing countries force foreigners to look for ways to protect their corporate assets. We consider some of the possible options for transferring financial assets abroad, the guidance for foreigners.

One of the ways for a foreigner to protect assets is to transfer assets to a reliable jurisdiction abroad. Many experts recommend foreign clients to cooperate with the banks in the UAE, as one of the most reliable in the world – a great option to asset protection. However, when making transactions to any of the countries, do not forget about currency control, which is carried out by government agencies about its citizens.

For assets transferring, foreigners can also use the increasingly popular SWIFT system. However, without specifying the purpose of payment, you can send no more than 5 thousand dollars a day. The amount of the transfer fee will be 1-2% of the transferred assets.

The cheapest way for a foreigner to transfer assets is the physical import of cash into the country. No fee is taken in this case; the only inconvenience is a limit on the number of imported assets – up to 10 thousand euros or equivalent.

How to transfer assets from one company to another? There will be no problems with that using the corporate account as well as with transferring assets to qualify for Medicaid. There are no limitations on financial assets operations and currency control in the UAE. Next, let us consider some issues of the use of a trust for assets protection in the UAE.

Transferring foreign assets to trust in the UAE

In the DIFC free zone (Dubai, UAE), new laws have been introduced recognizing the right to accumulate family assets in GCC countries in order to strengthen, preserve and regulate the assets in a sustainable way, and a cost-effective and business-friendly manner.

Trusts are known in Islamic law as Waqfs. In order for a Waqf to be valid, it must be founded for some purpose. The goal may include charity or asset protection. Once a foreigner founds the trust in DIFC, there will be no problems with transferring assets to it according to the laws of this free zone.

If you have any questions concerning the transfer of foreign assets, send us your request in order to obtain all the detailed information, we will be glad to help you with asset protection and transferring.