UAE Structuring That Doesn’t Blow Up Your US Return.

On earned income up to the Foreign Earned Income Exclusion (FEIE) limit (~USD 130k+ indexed) — yes, significantly. But US citizens are taxed on worldwide income regardless of residence, and UAE has no personal tax so no Foreign Tax Credit to offset US tax above the FEIE. Investment income is fully US-taxable. If you set up a UAE company, GILTI will often pull its earnings into your US return anyway. The 0% UAE position is real at UAE level but doesn’t translate automatically to a 0% US position.

Carefully. A UAE company owned 10%+ by a US person is a Controlled Foreign Corporation (CFC) for US purposes, which triggers GILTI inclusion — current-year taxation of foreign earnings even without distribution. Depending on the business, a check-the-box election to treat the UAE entity as a disregarded entity or partnership can avoid CFC/GILTI treatment. Section 962 election is another route. We model the options before you incorporate.

Passive Foreign Investment Company. Non-US mutual funds, ETFs, UCITS and many pooled investment vehicles are PFICs for US tax purposes. US tax treatment is punitive — excess-distribution regime, no capital-gain rates, Form 8621 reporting. US-connected clients should generally avoid non-US funds and buy US-domiciled ETFs instead (which many UAE-based investment advisers don’t steer them toward). We don’t pick investments but we flag the structural rule.

Yes. FBAR (FinCEN Form 114) applies to any US person with aggregate foreign financial accounts above USD 10,000 at any point in the year — and your UAE bank accounts count. UAE residence does not reduce the obligation. Penalties for non-filing are severe (up to USD 10,000 non-wilful, far higher wilful). Separate from Form 8938 under FATCA. US CPAs or secure online filers (FinCEN BSA e-filing) handle the filing.

Yes, but some banks are more comfortable than others. UAE banks have FATCA reporting obligations and some banks (particularly smaller private banks) have decided US-connected clients are more trouble than they’re worth. We know which UAE banks reliably open accounts for US-connected individuals and make the introduction accordingly.

No comprehensive income tax treaty between the UAE and the US. There is a limited totalisation agreement for social security, and various information-exchange agreements under FATCA. The absence of a comprehensive treaty means no tie-breaker if dual-residence disputes arise, no reduced withholding tax rates between the two countries, no clear mutual agreement procedure. Planning without treaty-based safety nets is what makes US-UAE work specialist territory.

No. We’re not US CPAs or Enrolled Agents and we don’t prepare US returns. What we do is UAE-side — residence, entity, UAE CT/VAT, structure design — with full awareness of the US position. We work alongside your US CPA or EA (or introduce you to one if you don’t have one). The division of labour works best when both sides play to their strength.

Don’t ignore it. The IRS Streamlined Foreign Offshore Procedures are specifically designed for US persons abroad who are behind on filing (usually 3 years of returns + 6 years of FBARs). Properly handled, the Streamlined route often brings people current without penalty where non-wilful. This is handled by US specialists. We provide UAE-side supporting data (UAE residence, Tax Residency Certificate where helpful, UAE income/account information) that the US specialist needs.

A major decision with significant tax consequences (Form 8854 expatriation tax for long-term green card holders and “covered expatriates”). We don’t advise on the renunciation decision itself — it’s a US-tax question handled by your US specialist. What we do is ensure your UAE residence is cleanly established well before the expatriation so the US position is clean. Any pre-expatriation UAE restructuring is coordinated with your US adviser.

Mixed-nationality households get planning options. Married Filing Jointly brings the non-US spouse into US tax net worldwide (usually unhelpful). Married Filing Separately keeps them out. If the non-US spouse has significant assets or income, keeping them separate (own accounts, own entities, own structures) often makes sense — both for US tax reasons and estate planning. We coordinate this with your US adviser.