Moving to the UAE from the US: Tax Checklist for Americans

Moving to the UAE is exciting, but the tax implications start before you leave. The UAE's zero income tax makes FEIE the only tool for earned income, creating unique pre-move planning needs. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, Texas, Florida, or another state with tax implications, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one
• Without FEIE, all earned income is subject to full US tax (no UAE tax to credit)

Visa Planning

• Research visa options: employment visa, golden visa, freelance visa, remote work visa
• Each visa has different requirements and implications
• None determine your US tax treatment

Banking

• Plan for UAE bank account opening (requires Emirates ID)
• Keep at least one US bank account open
• Understand FBAR reporting requirements
• Note: AED is pegged to USD at 3.6725, simplifying currency conversion

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

UAE Tax Residency

The UAE has no personal income tax. You become a UAE resident if you have a residence visa and Emirates ID.

FBAR

File FBAR for all foreign accounts, including UAE accounts, if the aggregate value exceeds $10,000. AED is pegged to USD, simplifying conversion.

Establishing UAE Tax Residency

• Obtain Emirates ID
• Open a UAE bank account
• Obtain health insurance (mandatory)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not qualifying for FEIE — Without FEIE, all earned income is subject to full US tax.
4. Not reporting UAE bank accounts on FBAR — All foreign accounts are reportable, even though AED is pegged to USD.
5. Not obtaining health insurance — Mandatory in the UAE.

Timeline Checklist

3 months before:

• Research visa options
• Plan state tax exit strategy
• Set up travel tracking system

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move

First month in the UAE:

• Obtain Emirates ID
• Open UAE bank account
• Obtain health insurance

First tax season:

• File US tax return with FEIE
• File FBAR
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are unsure about FEIE qualification.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner