All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.
In principle, all names are permissible unless they include a prohibition. However, it is not permissible to imitate the non-Muslims as this may reach the extent of taking a person out of the fold of Islam. In addition to this, a name has an effect on the person who is named with it in general. If a child is named with such an English name ‘Joseph’, it may lead him to love the non-Muslims who are named with this name. It might also lead him to consider their religion and conduct as good and consequently he will imitate them and this will have bad consequences. So, you should be careful about this. For more benefit, refer to Fatwa 83293.
It is desirable to name the children with the names of Prophets, and this usually has a good effect on the child. If he is named with the Quranic name Yousuf, he will remember the name of the Prophet Yousuf, whom the Quran stated as an eternal example for chastity and purity, and so he will follow his example in this regard.
Finally, it should be noted that if a Muslim resides in a non-Muslim country, he may be faced with many embarrassments in such circumstances, like naming children, so if it is possible for a Muslim to reside in a Muslim country, then this is better for him.
Also, for more benefit about the ruling on residing in a non-Muslim country, please refer to Fataawa 81642 and 86405.
Allaah Knows best.