Nomadic.Tax
JURISDICTION/US AUTHORITY/IRS TAX YEAR/2025 CLUSTER/US

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 $132,900 for tax year 2026, FEIE can eliminate US income tax entirely. We handle FEIE, FBAR for UAE accounts, and all required US filing.

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APPLICABILITY/WHO THIS IS FOR

Who 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
FILING RECORD/FORMS THAT MAY APPLY

What this filing may involve

Every situation is different. The forms below commonly apply — your specific filing may vary.

Form 1040 — US Individual Income Tax Return)
Form 2555 — Foreign Earned Income Exclusion (primary tool in UAE — no FTC available)
Schedule C — if self-employed or running a consulting practice in the UAE
Schedule SE — self-employment tax (applies even with FEIE)
FinCEN Form 114 — FBAR) — UAE banks and investment accounts often have large balances
DOCUMENTS/INFORMATION REQUIRED

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
PROCESS/RETURN ASSEMBLY

How Nomadic.Tax works

AI-assisted preparation with licensed professional review — every time.

1
INFORMATION
We confirm your FEIE eligibility (Physical Presence or Bona Fide Residence) and apply the exclusion
2
DOCUMENTS
AED and other currency amounts are converted using IRS-approved exchange rates
3
AI PREPARATION
We prepare FBAR for UAE bank and investment accounts
4
PROFESSIONAL REVIEW / E-FILE
A licensed CPA reviews and e-files your complete return
PROFESSIONAL REVIEW/CPA / ACCOUNTANT SIGN-OFF

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

Relevant plans

Choose the package that best fits your situation, or view all plans.

Premier
$349
For self-employed nomads, freelancers and platform earners.
  • ✓Everything in Standard
  • ✓Schedule C & SE for self-employment
  • ✓Multiple income sources and currencies
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Most popular

Expat
$499
For Americans living abroad — FEIE, foreign tax credits and FBAR included.
  • ✓Everything in Premier
  • ✓Foreign Earned Income Exclusion (Form 2555)
  • ✓Foreign Tax Credit (Form 1116)
  • ✓FBAR filing (FinCEN 114) included
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REFERENCE/COMMON QUESTIONS

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 $132,900 of earned income for tax year 2026. 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.

Who is this for?

Browse by your situation for tailored guidance and the right package.

US Expats Abroad Americans living in Dubai or the UAE filing US taxes from a zero-income-tax country. See who this is for →

Related filing services

US Expat Tax Filing → View filing service FEIE Tax Filing — Form 2555 → View filing service FBAR Filing — FinCEN Form 114 → View filing service

Ready to get your UAE Expats filing handled?

AI-assisted preparation, reviewed and e-filed by licensed professionals. Fixed price, no surprises.

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