Short answer: Americans can own freehold property in Dubai outright, and the UAE charges no tax on the rent or the sale. The IRS does, because the United States taxes its citizens on worldwide income wherever they live, and there is no US UAE income tax treaty.
What Dubai property costs in dollars
| What sold (median) | Dirhams | US dollars |
|---|---|---|
| Studio apartment | AED 657,040 | $178,908 |
| One bedroom apartment | AED 1,204,200 | $327,897 |
| Two bedroom apartment | AED 2,094,999 | $570,456 |
| Villa or townhouse | AED 3,416,640 | $930,331 |
| Golden Visa property threshold | AED 2,000,000 | $544,588 |
At the fixed rate of AED 3.6725 per US dollar, unchanged since 1997.
The US rules that matter
- Rent: report it on your US return. Foreign residential rental property placed in service after 2017 is depreciated over 30 years.
- Sale: gains are taxable in the US, including recapture of the depreciation you took.
- Accounts: a UAE bank account holding the rent counts toward the FBAR filing threshold of $10,000. Property held directly in your own name is not reported on FBAR or Form 8938; property held through a foreign company is.
- Estate: Dubai property counts in your US estate. The federal exclusion is $15 million in 2026.
We cover the US side in depth on our US site: can Americans buy property in Dubai, the US tax bill when you sell and mortgages for Americans.
The Dubai side: the same for every nationality
- Where you can buy: foreign nationals can own freehold property outright in Dubai’s designated freehold areas, which include most of the city’s main communities. See freehold vs non freehold in Dubai.
- Transfer fee: the Dubai Land Department charges 4% of the price, plus registration and agency fees.
- Off plan money: payments for off plan homes go into a project escrow account regulated under Dubai Law No. 8 of 2007.
- Tax in the UAE: individuals pay no annual property tax and no UAE income tax on rent or gains. Your home country may still tax them, which is what the rest of this guide is about.
- Residency: property worth AED 2 million or more can qualify you for the ten year Golden Visa. See the Golden Visa property threshold.
- Buying remotely: you can sign and pay from abroad, or appoint someone by power of attorney. A power of attorney signed outside the UAE must be notarised and legalised for use in Dubai, because the UAE does not accept apostilles.
- Mortgages: UAE banks lend to non residents, generally at 60% to 65% of the value, and most will not lend on off plan for non residents.
Talk to Cresco
Cresco Real Estate is a RERA registered brokerage in Dubai (ORN 34288) with an office in Los Angeles. We check what applies to your passport and home country before we show you a single property. Contact us to start.
Frequently asked questions
Can Americans buy property in Dubai?
Yes. US citizens can own freehold property outright in Dubai’s designated freehold areas.
Do Americans pay US tax on Dubai rental income?
Yes. The US taxes citizens on worldwide income, and there is no US UAE income tax treaty. The UAE charges no tax to credit.
Do I report Dubai property on FBAR?
Not property held directly in your own name. A UAE bank account counts toward the $10,000 FBAR threshold.
Method and limits
Dubai prices: Dubai Land Department register, sales registered 1 September to 11 October 2026, medians by unit type. US rules: IRS comparison of Form 8938 and FBAR (September 2026); IRS on depreciation of foreign residential rental property (IR-2018-257); IRS treaty list, January 2026; IRS on the 2026 estate exclusion. Dollar figures at the fixed rate of AED 3.6725. Laws and tax rules change often. This is general information, not legal, tax or financial advice. Speak to a qualified adviser in your home country before you buy.