US Tax Filing for Americans Living in Dubai / UAE
The UAE's zero personal income tax environment is extremely attractive for US expats. With no local income tax, there's nothing to credit against your US liability — but the Foreign Earned Income Exclusion (FEIE) works exceptionally well here. For most US expats in Dubai earning below $126,500, FEIE can eliminate US income tax entirely. We handle FEIE, FBAR for UAE accounts, and all required US filing.
Get started with your filingWho this is for
- ✓ US citizens or green card holders living and working in the UAE
- ✓ Americans employed by UAE companies or working in Dubai's financial district
- ✓ Self-employed consultants or contractors based in Dubai
- ✓ Expats with UAE bank accounts or investment portfolios
- ✓ Americans who recently relocated to the UAE from another country
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 (US Individual Income Tax Return)
- 2 Form 2555 — Foreign Earned Income Exclusion (primary tool in UAE — no FTC available)
- 3 Schedule C — if self-employed or running a consulting practice in the UAE
- 4 Schedule SE — self-employment tax (applies even with FEIE)
- 5 FinCEN Form 114 (FBAR) — UAE banks and investment accounts often have large balances
Documents usually needed
- 📄 UAE residency visa and Emirates ID
- 📄 Employer pay certificate or salary statements (in AED)
- 📄 Bank statements for all UAE and other foreign accounts
- 📄 Travel records showing days outside the US
- 📄 Prior year US tax return
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We confirm your FEIE eligibility (Physical Presence or Bona Fide Residence) and apply the exclusion
AED and other currency amounts are converted using IRS-approved exchange rates
We prepare FBAR for UAE bank and investment accounts
A licensed CPA reviews and e-files your complete return
When human review matters
- ⓘ The UAE has no income tax treaty with the US — FEIE is the primary tool, FTC is not typically applicable
- ⓘ Self-employment tax (15.3%) is not eliminated by FEIE — a common surprise for Dubai-based freelancers
- ⓘ UAE introduced a corporate tax of 9% from June 2023 for businesses — this does not affect individual employment income
[INSERT: customer testimonial, e.g. "senior finance professional in Dubai, UAE, saved money and stress using Nomadic.Tax"]
- senior finance professional, Dubai, UAE
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Americans Living in Dubai / UAE
I pay no tax in the UAE — do I still have to file a US return?
Yes. US citizens and green card holders must file a return if their income exceeds the filing threshold, regardless of where they live. However, FEIE can eliminate income tax on up to $126,500 of earned income. You still pay self-employment tax if self-employed.
Which is better — FEIE or Foreign Tax Credit for UAE expats?
FEIE, because the UAE has no income tax. There is nothing to credit via FTC. FEIE is the go-to strategy for most US expats in the UAE.
Do UAE bank accounts need to be reported?
Yes. UAE bank accounts, brokerage accounts, and any other foreign financial accounts are subject to FBAR if the aggregate balance exceeded $10,000 at any point during the year. Given the UAE's financial hub status, many expats hold significant balances.