UAE Free Zone

[Eastoe]

If you don't do the residence visa procedure that is a bit more complicated, the procedure to form the company is fairly easy you just put some signatures in some documents. Just be careful that some free zones (like RAK) want audited financial statements every year to renew the company's license and this can be complicated and costly.
The problem is that I am still not sure if having a residency card with a free trade zone company then the UAE banks will not report to your country's tax authorities.
As much as I have researched this matter I still do not have a clear answer. I have opened bank accounts in two UAE banks, Mashreq and NBD and funded them, but as much as I asked the bankers there is no one who knows for sure what will be reported.

I wish you the best starlights and you are welcome to ask me anything, .

DrKlau, I just posted my situation on another thread UAE offshore company, Cyprus corporate bank. How does EOI work? but your situation seems quite similar to what I have been recommend so perhaps you can kindly advise.
Is it correct that the UAE free zone company gives you residency visa and can this benefit in declaring your tax residency to the bank?
Did they advise you open personal bank account or only corporate?
What were the approx. set up and ongoing costs of the free zone company? My offshore company is in RAK and whilst cheap to set up the second year fees are more than double what I was quoted. According to the agent this is due to the additional filing requirements introduced in 2018 and the need for audited statements as you rightly refer to. Or they could just be ripping me off!
Thanks

 

[Horsecap]

You can also become a resident of UAE without effecting your Spanish residency

Then UAE reports your financials to UAE and not spain

Is it legal to be tax resident both in Spain and in the UAE at the same time?

 

[KJK]

Is it legal to be tax resident both in Spain and in the UAE at the same time?

Yes it is legal, in that case this treaty will apply: https://www.hacienda.gob.es/Documentacion/Publico/NormativaDoctrina/Tributaria/CDI/BOEIN_EAU.pdf

 

[Horsecap]

Yes it is legal, in that case this treaty will apply: https://www.hacienda.gob.es/Documentacion/Publico/NormativaDoctrina/Tributaria/CDI/BOEIN_EAU.pdf

Thanks for this KJK, however as I there is not UAE Income Tax to be paid in the UAE I am not sure how this can reduce my tax obligations in Spain for my 'world wide' income.
I will be grateful if you can help me, thanks a lot.