US Expat Taxes In UAE
U.S. Expats Tax Services In United Arab Emirates
The UAE is known for its tax-friendly policies, but U.S. expats still have IRS obligations. While the UAE has no personal income tax, Americans in Dubai and Abu Dhabi must file U.S. tax returns, report foreign assets, and comply with IRS rules.
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Expat Tax Deadline
For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.
How UAE Taxes Affect U.S. Expats
So, does UAE have taxes? The UAE does not levy personal income tax, making it a top destination for expats. However, for U.S. citizens in Dubai and Abu Dhabi taxes still need to be filed for the U.S., report foreign bank accounts, and comply with FATCA and FBAR regulations.
Tax Breakdown
Personal Income Tax
There are no UAE taxes in the country itself, so residents do not pay tax on earnings. However, U.S. citizens must still file U.S. taxes.
Corporate Tax
A 9% corporate tax applies to business profits exceeding AED 375,000 ($102,000). Free zone businesses may have exemptions.
Value-Added Tax (VAT)
The UAE taxes dictate a 5% VAT on goods and services, except for specific exemptions.
Tax Treaties
The UAE does not have a tax treaty with the U.S., meaning no automatic tax relief.
FBAR Requirement
U.S. expats must file an FBAR (FinCEN 114) if their foreign accounts exceed $10,000 at any time.
FATCA Compliance
Banks in the UAE report U.S. account holders to the IRS under FATCA regulations.
U.S. Tax Filing
U.S. expats must file Form 1040 and report foreign income and assets if applicable.
Expat Tax Deadline
The deadline is June 16, 2025, with an automatic extension to October 15 and a final extension to December 15 if needed.
Self-Employment Tax
U.S. expats in the UAE owe self-employment tax on U.S.-sourced income, but UAE earnings are tax-free locally.
Key Facts About U.S. Taxes for UAE Expats
Although UAE taxes don’t affect their own citizens, U.S. citizens living there must still comply with U.S. tax laws. Expats in UAE should understand their filing obligations, foreign bank reporting requirements, and available tax credits to avoid penalties and stay IRS-compliant.
No Personal Income Tax
U.S. citizens in the UAE do not pay local income tax but still have U.S. tax obligations.
FBAR & FATCA Compliance
Foreign accounts exceeding $10,000 must be reported via FBAR, and UAE banks comply with FATCA.
U.S. Tax Credits Available
Expats can use the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to reduce U.S. taxes.
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Easy to File Taxes
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Filing U.S. taxes as an expat doesn’t have to be stressful. Our streamlined process makes it quick, secure, and hassle-free, ensuring you meet all IRS requirements
Gather Your Documents
Collect income statements, foreign tax records, and bank account details to prepare for your expat tax return.
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Our team prepares your return, ensures compliance, and files it on your behalf—giving you peace of mind.
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Expert Tax Solutions for U.S. Expats Living Around the World
Expat-Focused Tax Expertise
We specialize in U.S. expat taxes, ensuring compliance with IRS regulations and tax treaties. Our team navigates complex reporting requirements, foreign tax credits, and exclusions to minimize your tax burden.
Secure & Hassle-Free Filing
Our online portal provides encrypted, easy document submission, so you can file from anywhere. We handle everything from FBAR reports to state taxes, ensuring a smooth process.
Personalized Support & Compliance Assurance
Each client gets a dedicated tax professional to answer questions, optimize deductions, and keep them compliant. We provide tailored strategies to avoid penalties and maximize savings.
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What Our Clients Have to Say
We Have All Your Queries Covered
Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.
Is there income tax in Dubai for foreigners?
No, Dubai does not impose personal income taxes on residents, including expats.
Do you have to pay taxes in dubai as an American Expat?
Yes, U.S. citizens living in Dubai must file annual U.S. tax returns, reporting their worldwide income.
Does the UAE have any taxes that affect expats?
While there’s no personal income tax, the UAE has a 5% VAT on goods and services and a 9% corporate tax on certain business profits.
How can I reduce my U.S. tax liability while living in the UAE?
Utilizing the Foreign Earned Income Exclusion (FEIE) can help reduce taxable income; eligibility depends on specific residency criteria.
Do I need to report my UAE bank accounts to the IRS?
Yes, if the total value of your foreign accounts exceeds $10,000 at any time during the year, you must file an FBAR.
Are there any tax treaties between the U.S. and the UAE?
Currently, there is no treaty between the United States and the United Arab Emirates taxes-wise.
Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.
