Opening a Bank Account in Dubai as a German: Process and Reporting Obligations

In Dubai, the same banking requirements apply to Germans as to all other foreigners. The difference does not lie with the bank but on the German side, and that is exactly where the problems we encounter most often arise.

The process does not differ

German citizenship is neither an advantage nor a disadvantage when opening an account. Only your residence status matters. A German employee with an employment visa gets the same account as an Indian or British colleague in the same situation.

The German obligations that are often overlooked

• Automatic exchange of information: the UAE participates in the CRS procedure. Your account is reported to the German tax office (Finanzamt) if you are tax resident in Germany.
• Declaration in your tax return: investment income from abroad belongs in the investment income schedule (Anlage KAP) for as long as you have unlimited tax liability in Germany.
• Reporting obligation under § 138 of the German Fiscal Code (Abgabenordnung, AO): mainly concerns shareholdings in foreign companies; relevant if the account belongs to a structure in the UAE.
• No double tax treaty: since the end of 2021 there has been no double tax treaty (Doppelbesteuerungsabkommen) between Germany and the UAE. Questions of residence can therefore not be resolved through a treaty.

What makes the bank meeting easier

• Bank statements for the last six months in English, with the bank's stamp
• A bank reference letter from your German bank: short, formal, in English
• Evidence of the origin of larger amounts, such as sales contracts or dividend resolutions
• A description of your own activity in two to three sentences that matches the licence
• A German tax number and a statement of your tax residence for the CRS declaration

German documents without a translation are the most common reason for documents being sent back. Savings banks and cooperative banks in Germany usually only issue reference letters in German. Ask for the document in both languages straight away or commission a certified translation before you fly.

The most common mistake in practice

Many German clients open the account first and clarify the tax side afterwards. That is the wrong order. As long as you keep a residence or habitual abode in Germany, you remain liable to tax there, regardless of where the money is held and in which currency.

If you actually move your residence, you should also have the exit tax (Wegzugsbesteuerung, § 6 AStG) reviewed if you hold shares of one percent or more in a corporation. This review belongs before the move, not after it: in hindsight, there is hardly any scope left to structure the tax burden.

Account and deregistration: the order in time

Several weeks pass between deregistering in Germany, entering the Emirates, receiving your Emirates ID and opening the account. If you close your German bank account too early, you have no working way to pay ongoing commitments during this period.

• Keep your German account until the account in the UAE has been activated
• Only then switch over direct debits and standing orders step by step
• Keep a German credit card as a fallback
• Notify your German bank of your change of address; otherwise the account may be closed because your address is unknown

Austrians and Swiss: the same rules, different reporting channels

For Austrians, the bank's requirements are identical. Differences exist only in domestic law: reporting obligations there follow their own rules, and exit taxation is structured differently from Germany. If you come from Austria, you should clarify these points with an adviser there.

Swiss nationals benefit from the fact that there is a double tax treaty between Switzerland and the UAE. This makes determining residence considerably easier and makes the constellation more predictable than for Germans. The automatic exchange of information also applies here, with reports going to the Swiss Federal Tax Administration.

In all three cases, the practical process at the bank remains the same: passport, supporting evidence, attending in person, compliance review. The differences lie solely in what has to be declared in your home country afterwards.

How we assess this constellation

An account in Dubai is unproblematic for Germans as long as it is managed transparently and declared correctly. It becomes difficult when there are expectations of discretion that today's reporting system no longer allows. The automatic exchange of information turns the foreign account into a normal account with a foreign IBAN, nothing more and nothing less.

Our division of roles is clear: we build and document the UAE side. Assessing the German consequences remains with your tax adviser (Steuerberater) in Germany. We provide them with the documents they need and, if you wish, coordinate with them directly.

What we regularly advise clients: have the conversation with your German adviser before your flight, not after opening the account. An hour of preparation can save you a correction that reaches back years.

Clarify before you travel

• Will your residence or centre of vital interests remain in Germany?
• Do you hold shares of one percent or more in a German corporation?
• Are your bank reference and supporting documents available in English?
• Is the purpose of the account clear: private, business or investment?
• Do you have a fallback for ongoing payments in Germany?

Which banks are open to which status and which documents are required in detail is explained under Opening a bank account in Dubai.