Invest in Dubai Real Estate from the USA: Tax, Visa, California and Florida
Short answer. Americans can buy freehold property in Dubai on the same terms as other foreign buyers, in the areas Dubai law opens to non-UAE nationals. The UAE does not levy income tax on individuals, but the IRS taxes US citizens and residents on worldwide income, so Dubai rent and gains are reported in the United States. Property held directly in your own name is not reported on the FBAR or on Form 8938; a UAE bank account can be. California taxes its residents on Dubai income; Florida has no personal income tax.
Talk to NAHY on WhatsApp from the US
WhatsApp and phone: +971 55 650 7737. NAHY Real Estate (RERA ORN 49326), Office 603, The Burlington Tower, Business Bay, Dubai.
Khaleej Times reported on 14 October 2026 that more US investors are looking at Dubai property for global real estate exposure. The Dubai Media Office releases read for this guide do not count American buyers, so this guide sticks to the rules. For the Dubai side in full (market figures, costs, escrow and Golden Visa), read the guide to invest in Dubai real estate.
Can Americans buy property in Dubai?
Yes. Dubai Law No. 7 of 2006, Article 4, allows non-UAE nationals, in areas determined by the Ruler, to hold freehold ownership of real property without time restrictions. Article 4 has no separate rule for Americans or any other foreign nationality, and the areas are listed in Regulation No. 3 of 2006 and its amendments. To register a purchase, the Dubai Land Department accepts a valid passport for a foreign buyer who does not live in the UAE.
Foreign buyers are a large part of the market: in the first quarter of 2026, foreign investment in Dubai real estate reached AED 148.35 billion across 48,445 investments, up 26% in value (Dubai Media Office, 9 April 2026).
US tax on Dubai property: what the IRS says
The points below are the IRS's own rules, with the IRS page and its date. They are not tax advice from NAHY: confirm how they apply to you with your own US tax adviser.
Worldwide income
For US citizens and resident aliens, the IRS states: "You are subject to tax on worldwide income from all sources" (IRS, U.S. citizens and resident aliens abroad, revised 20 October 2026). Rental income and expenses go on Schedule E of Form 1040, depreciation on Form 4562, and the Net Investment Income Tax may apply to net rental income on Form 8960 (IRS fact sheet FS-2018-14, August 2018, an archived page).
No income tax treaty between the US and the UAE
The United Arab Emirates does not appear on the IRS list of United States income tax treaties, A to Z (revised 3 January 2026).
Foreign tax credit
The IRS allows the foreign tax credit only for a tax that is "an income tax (or a tax in lieu of an income tax)" (IRS, Foreign taxes that qualify for the foreign tax credit, revised 9 July 2026). Because the UAE does not levy income tax on individuals, there is generally no UAE income tax on Dubai rent to credit against US tax. Ask your adviser how the Dubai purchase costs are treated.
FBAR and Form 8938
The IRS comparison of Form 8938 and FBAR requirements (revised 19 September 2026) lists "foreign real estate held directly" as not reported on either form. Accounts are different:
- FBAR. A UAE bank account is reported if your foreign accounts together exceed US$ 10,000 at any time during the year.
- Form 8938, living in the US. More than US$ 50,000 on the last day of the year or US$ 75,000 at any time for a single filer; US$ 100,000 or US$ 150,000 for married filing jointly.
- Form 8938, living abroad. US$ 200,000 or US$ 300,000 for a single filer; US$ 400,000 or US$ 600,000 for married filing jointly.
The United States and the UAE signed a Model 1 FATCA intergovernmental agreement in 2015, in force since 19 February 2016 (US Treasury).
Depreciation over 30 years
IRS Publication 946 (2025), Table 4-1, requires the Alternative Depreciation System, straight line, for "property used predominantly outside the United States". For residential rental property placed in service after 2017, the recovery period is 30 years (40 years if placed in service before 1 January 2018). A US rental uses 27.5 years under the General Depreciation System (IRS Publication 527, 2025).
Capital gains when you sell
Investment property is a capital asset, and a gain on property held more than one year is long term, taxed at 0%, 15% or 20%. For 2025 the 0% rate applies when taxable income is up to US$ 48,350 for a single filer or US$ 96,700 married filing jointly, and the 20% rate applies to taxable income above US$ 533,400 single or US$ 600,050 married filing jointly. Unrecaptured section 1250 gain is taxed at up to 25%, and the Net Investment Income Tax may apply (IRS Topic 409, revised 9 November 2026).
Get Dubai options and a cost sheet on WhatsApp
WhatsApp and phone: +971 55 650 7737. NAHY Real Estate (RERA ORN 49326), Office 603, The Burlington Tower, Business Bay, Dubai.
California vs Florida vs Dubai
The same Dubai apartment is taxed differently depending on where its American owner lives. This table sets the official rules side by side.
| Rule | California resident | Florida resident | Dubai, where the property is |
|---|---|---|---|
| State or emirate income tax on individuals | Yes, top bracket 12.3% from US$ 742,953 single or US$ 1,485,906 married filing jointly (2025), plus 1% on taxable income over US$ 1 million | None: "Florida does not impose a personal income tax" | None: "The UAE does not levy income tax on individuals" |
| Rent from the Dubai property | Taxed by California, which taxes residents on all income, including income from outside California | No state income tax | Outside UAE Corporate Tax for an individual (Cabinet Decision No. 49 of 2023) |
| US federal tax on that rent | Yes, worldwide income | Yes, worldwide income | Not a UAE tax; the IRS taxes US persons wherever they live |
| Annual property tax on a home located there (California and Florida rules do not reach the Dubai unit) | Rate limited to 1% plus voter approved bonds; assessed value rises at most 2% a year, except on a change of ownership or new construction | Homestead assessment increases capped at the lower of 3% or the change in CPI (Save Our Homes) | No annual property tax is listed among the DLD buyer fees; building service charges and Ejari apply |
The table's sources (FTB, the State Board of Equalization, the Florida Department of Revenue, u.ae and the DLD) are listed at the end of this guide.
California residents
California Franchise Tax Board Publication 1031 (2025) defines a resident as someone present in California for other than a temporary or transitory purpose, or domiciled in California and outside the state for a temporary purpose. It states: "Residents of California are taxed on ALL income, including income from sources outside California", while "Nonresidents of California are taxed only on income from California sources". For the sale of real property, the gain "has a source where the property is located".
In practice, a California resident who buys in Dubai keeps paying California tax on the Dubai rent and on the gain, at rates up to 12.3% for 2025, plus 1% on taxable income over US$ 1 million (Behavioral Health Services Tax). Publication 1031 also has its own rules, including a safe harbor tied to employment contracts abroad, for someone who changes residence: confirm with your tax adviser before you rely on them.
Florida and Miami residents
The Florida Department of Revenue states: "Florida does not impose a personal income tax, so there are no filing requirements." A Florida resident therefore pays no state income tax on Dubai rent, while the federal rules above still apply.
Miami also has a large Brazilian community: the Brazilian Foreign Ministry counts 400,000 Brazilians in the Miami consular area and 190,000 in the Orlando area (base year 2023). For them NAHY has a guide in Portuguese: Investir em Dubai morando nos Estados Unidos.
Your dollars and the dirham peg
The Central Bank of the UAE "maintains a fixed exchange rate of the UAE Dirham against the US Dollar" and deals at 3.672 to 3.673 dirhams per dollar (updated 29 August 2022). For savings in dollars, AED 2 million is about US$ 545,000 and stays there while the peg holds.
How a US buyer buys from home
- Choose and price. NAHY sends the units that fit, the full cost sheet and the DLD rent records of the building on WhatsApp.
- Check the project. For off-plan, confirm the project is registered with the DLD and that its escrow account is open, as Law No. 8 of 2007 requires.
- Pay into escrow. Off-plan payments go into the project escrow account, never to a personal account, and the purchase is recorded in Oqood, the interim register of Law No. 13 of 2008.
- Register. The DLD accepts a valid passport for a foreign buyer who does not live in the UAE, and registers a sale with the parties "or their legally authorized representatives". The DLD page does not set out the power of attorney steps, so confirm the format for your case before you sign one.
- Pay the DLD fees. 4% of the value, AED 250 for the title deed, AED 225 for the map, AED 20 in knowledge and innovation fees and the trustee fee with VAT.
- Rent it out. Register each lease in Ejari, AED 177.75 through the Dubai REST app.
Golden Visa and visiting Dubai
A property worth AED 2 million or more in your name can support the UAE 10-year Golden Visa, renewable while the conditions continue (GDRFA Dubai). For a mortgaged property, the Dubai Land Department service asks for a letter from the bank showing that AED 2 million has been paid. The full conditions and fees are in the Dubai property investment guide.
US passport holders do not need to apply for a visa in advance for a short visit. Check the current entry rules on the website of the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) before you travel. The US State Department notes that the UAE requires a passport valid for at least six months beyond the date of entry (page last updated 14 August 2023).
A will for your Dubai property
The DIFC Courts Wills Service "gives non-Muslims investing and living in the UAE the option to pass on their assets and/or appoint guardians for their children". It covers assets in the UAE, with Full, Property, Financial Assets, Business Owners, Digital Assets and Guardianship wills; plan your US estate with your US adviser.
Questions Americans ask about Dubai property
Can Americans buy property in Dubai?
Yes. Dubai Law No. 7 of 2006 allows non-UAE nationals to own freehold property in the areas determined by the Ruler, with no separate rule for Americans or any other foreign nationality. The Dubai Land Department accepts a valid passport for a foreign buyer who does not live in the UAE.
Do I pay US tax on Dubai rental income?
The IRS says US citizens and resident aliens are subject to tax on worldwide income from all sources, so Dubai rent is reported in the United States, on Schedule E of Form 1040. The UAE does not levy income tax on individuals. Confirm the details with your own US tax adviser.
Is Dubai property reported on FBAR?
Not when you hold it directly. The IRS comparison of Form 8938 and FBAR lists foreign real estate held directly as not reported on either form. A UAE bank account is reported on the FBAR when your foreign accounts together exceed US$ 10,000 at any time in the year. Confirm with your own US tax adviser.
Do I need to file Form 8938 for property in Dubai?
Foreign real estate held directly is not reported on Form 8938, according to the IRS. Foreign financial accounts can be: for a single filer living in the United States, the threshold is more than US$ 50,000 on the last day of the year or US$ 75,000 at any time. Confirm with your own US tax adviser.
Is there a tax treaty between the US and the UAE?
No. The United Arab Emirates is not on the IRS list of United States income tax treaties, A to Z, revised 3 January 2026.
Can I claim a foreign tax credit for Dubai rent?
The IRS allows the credit only for a foreign tax that is an income tax or a tax in lieu of an income tax. The UAE does not levy income tax on individuals, so there is generally no UAE income tax on the rent to credit. Ask your US tax adviser about your case.
How is a Dubai rental property depreciated for US tax?
IRS Publication 946 requires the Alternative Depreciation System for property used predominantly outside the United States. For residential rental property placed in service after 2017, the recovery period is 30 years, compared with 27.5 years for a US rental. Confirm with your own US tax adviser.
Do California residents pay state tax on Dubai rental income?
Yes. FTB Publication 1031 says residents of California are taxed on all income, including income from sources outside California. The top 2025 bracket rate is 12.3%, and the Behavioral Health Services Tax adds 1% on taxable income over US$ 1 million. Confirm with your own US tax adviser.
Do Florida residents pay state income tax on Dubai rent?
No. The Florida Department of Revenue says Florida does not impose a personal income tax. US federal tax on the rent still applies. Confirm with your own US tax adviser.
Do US citizens need a visa to visit Dubai?
US passport holders do not need to apply for a visa in advance for a short visit. Check the current rules on the ICP website before you travel; the US State Department notes that the UAE requires a passport valid for at least six months beyond the date of entry.
Talk to NAHY from the United States
Send your budget, your state and your goal: rent, resale or a Golden Visa. NAHY replies on WhatsApp with the units that fit and the cost sheet in dirhams and dollars.
WhatsApp and phone: +971 55 650 7737. NAHY Real Estate (RERA ORN 49326), Office 603, The Burlington Tower, Business Bay, Dubai.
This guide explains the published rules of the IRS, California, Florida and the UAE. It is not investment, tax or legal advice: confirm your own situation with your US tax adviser.
Sources
- IRS: U.S. citizens and resident aliens abroad (20 October 2026); Publication 54 (December 2025); FS-2018-14 (August 2018, archived); income tax treaties A to Z (3 January 2026); foreign tax credit (9 July 2026); Form 8938 and FBAR comparison (19 September 2026); Publications 946 and 527 (2025); Topic 409 (9 November 2026)
- US Treasury, FATCA agreement with the UAE, 2015
- California Franchise Tax Board, 2025 rate schedules, 2025 Form 540-ES instructions and Publication 1031 (2025); State Board of Equalization, Publication 29 (March 2025)
- Florida Department of Revenue, income tax FAQ (read 11 November 2026) and Save Our Homes (January 2026)
- Dubai Legislation Portal, Laws No. 7 of 2006, 8 of 2007 and 13 of 2008 (read 11 November 2026)
- Dubai Land Department, sale registration, Ejari and Golden Visa services (3 November 2026); GDRFA Dubai (10 November 2026)
- Dubai Media Office (9 April 2026); Khaleej Times (14 October 2026)
- Central Bank of the UAE (29 August 2022); u.ae, Taxation; Cabinet Decision No. 49 of 2023
- US Department of State, UAE country information (14 August 2023); UAE Ministry of Foreign Affairs, visa information for US citizens (read 11 November 2026); DIFC Courts, Wills Service (read 11 November 2026)
- Brazilian Ministry of Foreign Affairs, Comunidades Brasileiras no Exterior, base year 2023 (July 2024)