Tim Elliott
Welcome to Lawgical, the UAE’s first legal podcast. It’s also still the UAE’s only legal podcast as well. I’m Tim Elliott, and I’m here once again with the managing partner of the Dubai-based law firm HPL Yamalova & Plewka. Ludmila Yamalova, it’s good to have you back.
Ludmila Yamalova
Good to have you back too, Tim. Thanks for coming. Nice to see you.
Tim Elliott
Today on Lawgical, we’re discussing what people should think about when planning to leave the UAE. A lot of people make the UAE their home, Ludmila. We’re both expatriates here, and there will come a time when we decide to leave. One of the things you learn as you get older is that time seems to speed up as you age. I don’t know if you feel the same, but I certainly do. So, when that time comes, what do people need to do before leaving? Let’s start with bank accounts.
Ludmila Yamalova
Sure. There’s a whole list of things you should address before leaving the UAE to ensure everything is properly handled. Bank accounts, and anything related to banking, are absolutely crucial. However, closing your bank account can often be left until later.
This is because you might still need an active bank account for certain transactions. For example, if you own property and are selling it, you’ll need a bank account to receive the sale proceeds. Similarly, your end-of-service benefits or final salary payments will need to be deposited somewhere.
If you have outstanding loans or payments, you’ll also need a bank account to manage those. Even after leaving, some people prefer to keep their UAE bank accounts open for convenience or for receiving rental income if they retain property here. So, while closing your bank account is important, it’s often one of the last things to do.
Tim Elliott
So, you shouldn’t close your bank account first. What should you prioritize when preparing to leave the UAE?
Ludmila Yamalova
It depends on your circumstances and connections to the country. If you’re employed, notifying your employer about your resignation—or if your employment is being terminated—is an important first step.
You’ll need to settle any end-of-service compensation and agree on the terms of your departure. Employment ties directly into your visa status, especially if you’re the primary sponsor for your family. Before your visa can be canceled, your dependents’ visas will need to be canceled. Coordinating your visa cancellation with your departure timeline is crucial.
You don’t want to leave the UAE with your visa still active, as it could lead to complications. While visas are automatically canceled after six months of inactivity, it’s better to handle this properly before leaving.
Tim Elliott
What about real estate—whether you own property or rent?
Ludmila Yamalova
If you own property, you’ll need to decide whether to sell it or retain it as an investment. If you’re renting, you must settle your lease agreement with your landlord. Notify them in advance and agree on the terms of your departure, such as paying penalties for early termination or subletting the property.
Don’t forget utilities like DIWA (electricity and water), district cooling services, and telecom providers like Etisalat or du. These contracts must be terminated, and you’ll need to settle any outstanding bills. Additionally, there may be deposits tied to these accounts, so be sure to process refunds before you leave.
If you fail to properly terminate your rental agreement or utility services, it can lead to legal complications, including potential claims or travel bans. It’s essential to document everything, including handover receipts or clearance certificates, to avoid disputes later.
Tim Elliott
What about vehicles, schools, and other obligations?
Ludmila Yamalova
If you own a car, whether outright or through a loan, you’ll need to address that. If it’s financed, you must settle the loan before selling the car. If you own it outright, make sure to deregister the car and cancel the insurance. Canceling insurance policies early may also entitle you to a refund, so it’s worth looking into.
For parents, you’ll need to notify schools, nurseries, and extracurricular activity providers about your departure. Terminate contracts or agreements and settle any outstanding fees.
Tim Elliott
What’s your advice for handling ongoing matters after you leave?
Ludmila Yamalova
Consider giving a trusted individual in the UAE a power of attorney (POA). They can manage unfinished business, such as selling property, receiving refunds, or addressing employment disputes on your behalf.
However, banks in the UAE are strict about dealing with POAs. To handle banking matters, you’ll need a specific POA issued by your bank before you leave.
Tim Elliott
And legal issues? What if someone has a police case or unpaid fines?
Ludmila Yamalova
If you have civil cases, like employment disputes, ensure someone can represent you here, such as a lawyer with a valid POA.
For administrative matters, such as traffic fines, you must resolve them before leaving. In many cases, you won’t be able to cancel your visa until these fines are paid.
For criminal cases, travel bans or passport confiscation will likely prevent you from leaving the UAE until the matter is resolved.
Tim Elliott
Ludmila Yamalova is the managing partner of Yamalova & Plewka, based here in Dubai. As always, thank you for your insights.
Ludmila Yamalova
Thank you, Tim. Always a pleasure.
Tim Elliott
That’s it for another edition of Lawgical. Remember, LYLawyers.com is a treasure trove of free legal information. If you have a specific question or need a consultation, click “Contact” or WhatsApp us at +971 52 525 1611. Until next time!
