--- title: "Buying property in Dubai and the UAE from the United States" canonical: https://www.uaepropertyagents.com/buyers/united-states markdown: https://www.uaepropertyagents.com/md/buyers/united-states.md type: buyer-market description: "For US buyers of UAE property: the dollar peg, buying remotely, IRS rules on foreign rental income, FBAR, depreciation, mortgages, flights and the time difference." last_verified: 2026-11-12 sources: 19 publisher: "UAE Property Agents (Omnia)" language: en-GB usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting." --- # Buying property in Dubai and the UAE from the United States > The dirham is pegged to the dollar, so a US buyer carries almost no currency risk. The IRS is the bigger consideration: US citizens are taxed on worldwide income wherever they live, and there is no US income tax treaty with the UAE. Facts last verified 12 November 2026. ## The short version - Americans can own freehold in Dubai's designated areas, Abu Dhabi's investment zones and Ras Al Khaimah's freehold areas without living in the UAE. - The dirham is pegged at AED 3.6725 to the US dollar, so prices, instalments and rent hold their dollar value as long as the peg does. - US citizens and resident aliens are taxed on worldwide income, so UAE rent goes on the US return; the UAE levies no personal income tax to credit, and the IRS lists no US income tax treaty with the UAE. - Foreign residential rental property is depreciated over 30 years under the alternative depreciation system, not 27.5 years. - A UAE property held directly is not reported on the FBAR or Form 8938, but a UAE bank account used for the rent can be. ## In numbers - **13%**: US share of international online interest in Dubai property, June to August 2026, second only to India (DXBinteract; interest, not transactions) ([Emirates 24|7: India tops international buyer interest in Dubai property, US surges to second, DXBinteract data (23 September 2026)](https://www.emirates247.com/business/dubai-property-2026-india-tops-international-buyer-interest-us-surges-to-second/5946)) ## Currency $1 USD = AED 3.6725 (pegged, source: [ExchangeRate-API open data: AED rates, 12 November 2026 (0.272294 dollars per dirham, the AED 3.6725 peg)](https://open.er-api.com/v6/latest/AED)). ## How American buyers buy Most of an off-plan purchase can be done from the US. A resale or a handover needs you, or someone you appoint, in the UAE. You do not need UAE residency or a visa to own property. Non-UAE nationals can buy freehold in the areas of Dubai designated under Regulation No. 3 of 2006, in Abu Dhabi's investment zones and in Ras Al Khaimah's freehold areas. **Off-plan.** Reservations and sale agreements are signed electronically and instalments are paid by wire into the project's escrow account named in the contract. In Dubai the sale is registered on the Oqood system and the Dubai Land Department (DLD) fee of 4% of the price is paid at registration. **Resale and handover.** You can attend, or appoint someone under a power of attorney. A power of attorney signed outside the UAE must be authenticated in the country where it is signed, then attested by the UAE embassy or consulate there and by the UAE Ministry of Foreign Affairs, with a legal Arabic translation, before the land department will rely on it. **Title and estate planning.** A US will or trust does not automatically settle what happens to a UAE property, and UAE courts apply their own procedures. Non-Muslim owners can register a will in the UAE; the DIFC Courts Wills Service is the route most used by overseas owners. Ask your US estate attorney how the two fit together. **Documents commonly requested** - Passport, valid for at least six months - Recent proof of US address - Bank or brokerage statements showing the funds - Evidence of where the money came from, such as a closing statement, W-2s or tax returns, or a sale confirmation - For a resale or handover by someone else: the attested power of attorney Sources: [UAE Government portal: Expatriates buying a property in the UAE (checked 12 November 2026)](https://u.ae/en/information-and-services/moving-to-the-uae/expatriates-buying-a-property-in-the-uae); [Dubai Regulation No. 3 of 2006 on areas where non-UAE nationals may own property](https://dlp.dubai.gov.ae/Legislation%20Reference/2006/Regulation%20No.%20(3)%20of%202006.html); [UAE Ministry of Foreign Affairs: attestation service](https://www.mofa.gov.ae/en/services/attestation); [DIFC Courts Wills Service: Property Will](https://www.difccourts.ae/difc-courts-wills/services/property-will). ## Paying in dollars The peg removes most currency risk. The costs that remain are the wire and the bank's conversion margin. The UAE dirham is pegged to the US dollar at AED 3.6725, and the open-market rate published on 12 November 2026 was exactly that peg. An AED 1.5 million apartment is about $408,400, and that dollar figure does not drift between booking and handover as it does for buyers paying in pounds, euros or rupees. The residual risk is a change to the peg itself. **The transfer.** Compare the dirhams that arrive, not the fee alone: a bank may convert at a margin over the peg. Wiring dollars and letting the UAE bank or developer convert is one option; ask the developer which currencies its escrow account accepts. We do not recommend or partner with any transfer provider. **Where the money goes.** Pay only from an account in your own name into the escrow account named in the contract. Payments from third parties, in cash or in cryptocurrency are likely to be delayed or refused. Sources: [ExchangeRate-API open data: AED rates, 12 November 2026](https://open.er-api.com/v6/latest/AED); [ADREC: frequently asked questions (escrow accounts)](https://adrec.gov.ae/en/faqs). ## US tax on UAE property General information, not tax advice. A US CPA or enrolled agent should confirm how the rules apply to you. - **Worldwide income.** US citizens and resident aliens are taxed on worldwide income from all sources, and file under the same rules whether they live in the US or abroad. Those living abroad get an automatic two-month extension to 15 June for a calendar-year return. - **No treaty, no credit.** The IRS list of US income tax treaties does not include the UAE, and the UAE charges individuals no income tax on rent, so there is normally no foreign tax to credit. - **Depreciation.** Tangible property used predominantly outside the US must use the alternative depreciation system. For residential rental property that is a 30-year recovery period (40 years for property placed in service before 2018), against 27.5 years for a US rental. - **Gains.** A gain on property held for more than one year is long-term, taxed at 0%, 15% or 20% depending on taxable income, and may also be subject to the net investment income tax. - **Reporting accounts.** Real estate held directly is not reported on the FBAR or Form 8938. A UAE bank account that receives the rent is a foreign financial account: an FBAR is required if your foreign accounts together exceed $10,000 at any time in the year, and Form 8938 has its own, higher thresholds. The detail is in [US tax on Dubai property](https://www.uaepropertyagents.com/guides/us-tax-on-dubai-property). Sources: [IRS: U.S. citizens and resident aliens abroad (updated 20 October 2026)](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad); [IRS: United States income tax treaties A to Z (updated 3 January 2026)](https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z); [IRS Publication 946 (2025): How to depreciate property, required use of ADS](https://www.irs.gov/publications/p946); [IRS Topic no. 409: Capital gains and losses (updated 9 November 2026)](https://www.irs.gov/taxtopics/tc409); [IRS Topic no. 559: Net investment income tax](https://www.irs.gov/taxtopics/tc559); [IRS: Comparison of Form 8938 and FBAR requirements (updated 19 September 2026)](https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements); [PwC Worldwide Tax Summaries: UAE, taxes on personal income (reviewed 9 September 2026)](https://taxsummaries.pwc.com/united-arab-emirates/individual/taxes-on-personal-income). ## Mortgages for US buyers A UAE bank lending to a non-resident, or borrowing at home: a dollar loan carries no currency mismatch against a dirham asset while the peg holds. **A UAE mortgage.** Banks lend to non-residents on tighter terms than to residents, typically 50% to 60% of a completed property's value against up to 80% for an expatriate living in the UAE, and each bank decides which nationalities and countries of residence it accepts. Most lend at or near handover, not during construction, so off-plan instalments are paid from your own funds. **Borrowing at home.** A home equity loan or cash-out refinance on US property raises dollars from a lender that knows you, secured on the US home. Because the dirham is pegged to the dollar, repaying a dollar loan from dirham rent carries little currency risk while the peg holds. Rates, fees and the off-plan problem are in [non-resident mortgages in the UAE](https://www.uaepropertyagents.com/guides/non-resident-mortgages-uae). Sources: [HSBC UAE: Non-resident mortgages (checked 12 November 2026)](https://www.hsbc.ae/mortgages/non-resident/); [Holo: Best mortgage banks in the UAE 2026 (3 July 2026)](https://www.useholo.com/en/blog/best-mortgage-banks-in-uae-2026-complete-comparison). ## Residency through property Owning a home does not by itself give the right to live in the UAE, but it can support a residence application. Property worth AED 2 million (about $545,000) or more can support an application for the 10-year Golden Visa, and since 29 April 2026 a sole owner of a completed Dubai property can apply for the two-year investor visa at any value. Both are decided by the authorities. A UAE residence visa does not change a US citizen's obligation to file US returns. See the [Golden Visa guide](https://www.uaepropertyagents.com/guides/uae-golden-visa-property) and the [two-year investor visa](https://www.uaepropertyagents.com/guides/dubai-property-investor-visa). Check visitor entry requirements for your passport with the US State Department or your airline before travelling. Sources: [UAE Government portal: Golden visa (updated 28 July 2026)](https://u.ae/en/information-and-services/visa-and-emirates-id/residence-visas/golden-visa); [Dubai Land Department: Investor residence application, Taskeen](https://dubailand.gov.ae/en/eservices/request-for-investor-visa/); [IRS: U.S. citizens and resident aliens abroad (updated 20 October 2026)](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad). ## Questions and answers ### Can US citizens buy property in Dubai? Yes. Non-UAE nationals, including Americans, can own freehold property in the areas of Dubai designated under Regulation No. 3 of 2006, and in Abu Dhabi's investment zones and Ras Al Khaimah's freehold areas. You do not need to live in the UAE or hold a visa to buy. ### Do I pay US tax on rent from a Dubai property? Yes, if you are a US citizen or resident alien: you are taxed on worldwide income. The UAE charges individuals no income tax on rent, and the IRS lists no US income tax treaty with the UAE, so there is normally no foreign tax credit. Foreign residential rental property is depreciated over 30 years. This is general information, not tax advice. ### Do I report a Dubai property on the FBAR? Not the property itself. The IRS states that foreign real estate held directly is not reported on the FBAR or Form 8938. A UAE bank account that holds rent or purchase funds is a foreign financial account, and an FBAR is required if your foreign accounts together exceed $10,000 at any time during the year. ### Is there currency risk for Americans buying in Dubai? Very little while the peg holds. The dirham is fixed at AED 3.6725 to the US dollar, so an AED price, an instalment schedule and dirham rent keep their dollar value. You still pay any conversion margin your bank applies. ### What is the time difference between New York and Dubai? The UAE is four hours ahead of GMT all year. It is nine hours ahead of New York while the US East Coast is on standard time and eight hours ahead during daylight saving time. Los Angeles is 12 hours behind Dubai in winter and 11 in summer. ## Related guides - [US tax on Dubai property: rental income, 30-year depreciation, FBAR and capital gains](https://www.uaepropertyagents.com/guides/us-tax-on-dubai-property) - [Non-resident mortgages in the UAE: how much you can borrow, 2026 rates, fees and how to apply](https://www.uaepropertyagents.com/guides/non-resident-mortgages-uae) - [Dubai property buying costs in 2026: every fee, off-plan and resale](https://www.uaepropertyagents.com/guides/dubai-property-buying-costs) - [How to buy property in Dubai as a foreigner: the step-by-step guide](https://www.uaepropertyagents.com/guides/buying-property-in-dubai) - [Post-handover payment plans in Dubai: eight real 2026 plans and whether the rent covers them](https://www.uaepropertyagents.com/guides/post-handover-payment-plans-dubai) - [UAE Golden Visa by property investment: the AED 2 million rules, costs and process in 2026](https://www.uaepropertyagents.com/guides/uae-golden-visa-property) ## Sources Facts on this page were last checked against these sources on 12 November 2026. - [UAE Government portal: Expatriates buying a property in the UAE (checked 12 November 2026)](https://u.ae/en/information-and-services/moving-to-the-uae/expatriates-buying-a-property-in-the-uae) - [Dubai Regulation No. 3 of 2006 on areas where non-UAE nationals may own property](https://dlp.dubai.gov.ae/Legislation%20Reference/2006/Regulation%20No.%20(3)%20of%202006.html) - [UAE Ministry of Foreign Affairs: attestation service](https://www.mofa.gov.ae/en/services/attestation) - [DIFC Courts Wills Service: Property Will](https://www.difccourts.ae/difc-courts-wills/services/property-will) - [ExchangeRate-API open data: AED rates, 12 November 2026](https://open.er-api.com/v6/latest/AED) - [ADREC: frequently asked questions (escrow accounts)](https://adrec.gov.ae/en/faqs) - [IRS: U.S. citizens and resident aliens abroad (updated 20 October 2026)](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad) - [IRS: United States income tax treaties A to Z (updated 3 January 2026)](https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z) - [IRS Publication 946 (2025): How to depreciate property, required use of ADS](https://www.irs.gov/publications/p946) - [IRS Topic no. 409: Capital gains and losses (updated 9 November 2026)](https://www.irs.gov/taxtopics/tc409) - [IRS Topic no. 559: Net investment income tax](https://www.irs.gov/taxtopics/tc559) - [IRS: Comparison of Form 8938 and FBAR requirements (updated 19 September 2026)](https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements) - [PwC Worldwide Tax Summaries: UAE, taxes on personal income (reviewed 9 September 2026)](https://taxsummaries.pwc.com/united-arab-emirates/individual/taxes-on-personal-income) - [HSBC UAE: Non-resident mortgages (checked 12 November 2026)](https://www.hsbc.ae/mortgages/non-resident/) - [Holo: Best mortgage banks in the UAE 2026 (3 July 2026)](https://www.useholo.com/en/blog/best-mortgage-banks-in-uae-2026-complete-comparison) - [UAE Government portal: Golden visa (updated 28 July 2026)](https://u.ae/en/information-and-services/visa-and-emirates-id/residence-visas/golden-visa) - [Dubai Land Department: Investor residence application, Taskeen](https://dubailand.gov.ae/en/eservices/request-for-investor-visa/) - [Emirates 24|7: India tops international buyer interest in Dubai property, US surges to second, DXBinteract data (23 September 2026)](https://www.emirates247.com/business/dubai-property-2026-india-tops-international-buyer-interest-us-surges-to-second/5946) - [Wikipedia: Dubai International Airport, airlines and destinations table (checked 12 November 2026)](https://en.wikipedia.org/wiki/Dubai_International_Airport) --- Source page: https://www.uaepropertyagents.com/buyers/united-states. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.