US → UAE
Moving your business from the US to Dubai: you still file with the IRS
Short answer
A US citizen living in Dubai is still taxed by the US on worldwide income.
The foreign earned income exclusion can reduce this. You must file a US return to claim it.
What does not change
The foreign earned income exclusion
- The maximum is $130,000 for 2025 and $132,900 for 2026, per qualifying person. Source
- One route: you are a bona fide resident abroad for a full tax year without a break. Source
- The other route: you are abroad for at least 330 full days in 12 months in a row. Source
- It reduces regular income tax. It does not reduce self-employment tax. Source
The UAE side of the move
- Most mainland companies can now be 100% foreign owned. Some activities of strategic importance can still carry limits. Source
- UAE Corporate Tax is 0% on taxable income up to AED 375,000 and 9% above that. Source
- A Qualifying Free Zone Person pays 0% on Qualifying Income. Its other taxable income is taxed at 9%. Source
- Every taxable business must register for Corporate Tax, including free zone businesses. Source
Common questions
Do I stop paying US tax if I move to Dubai?
No. US citizens abroad are taxed on worldwide income. The foreign earned income exclusion can reduce the bill.
How much is the foreign earned income exclusion?
The IRS gives a maximum of $132,900 per qualifying person for 2026, and $130,000 for 2025.