Living in the UAE or the Gulf, but still required to file a US tax return?
You’re not alone. Whether you’re in Dubai, Abu Dhabi, Qatar, Saudi Arabia, Oman, Bahrain, or Kuwait — all U.S. citizens and green card holders must file annual U.S. tax returns, even if you pay zero tax in the Middle East.
At HQ Tax & Financial, we specialize in helping American expatriates stay fully compliant while minimizing taxes through legal IRS exemptions.
Why Do Americans Abroad Still Need to File Taxes?
Unlike most countries, the United States taxes based on citizenship, not residency.
That means:
✔ You must file a US tax return (Form 1040) every year
✔ Foreign income is reportable — even if you earn it in the UAE or Gulf
✔ Additional forms may be required for foreign bank accounts, crypto, investments, companies, or real estate
Failing to file can result in serious IRS penalties — but the good news is that expatriates qualify for powerful tax benefits.
Key Tax Benefits for Americans in the UAE & Gulf
1. Foreign Earned Income Exclusion (FEIE)
Excludes up to $126,500 (2025) of foreign salary or self-employment income.
Most expats in the UAE pay $0 US tax due to this benefit.
2. Foreign Housing Exclusion
Additional deductions for high-cost cities like Dubai, Abu Dhabi, Doha, and Riyadh.
3. Foreign Tax Credit (FTC)
For expats paying taxes in countries like Saudi Arabia or Qatar.
4. Tax Treaty Benefits & Totalization Exceptions
Depending on your situation, you may benefit from treaty-based adjustments.
Do You Need to File an FBAR or FATCA Report?
Many expatriates are unaware that they must report foreign bank accounts.
FBAR (FinCEN Form 114)
Required if the total of your foreign accounts exceeds $10,000 at any time during the year.
FATCA (Form 8938)
Required for foreign assets exceeding IRS thresholds.
We handle both to ensure full compliance and avoid penalties.
Who Must File?
You must file even if:
- You live and work in the UAE or in the Gulf
- You earn a salary in AED, SAR, QAR, KWD, OMR, or BHD
- You have no US employer
- You haven’t lived in the US for years
- You earn below the US standard deduction
- You file jointly with a non-US spouse
- You run a business in the UAE (LLC, Free Zone, Sole Proprietorship)
If you hold a US passport or a green card, you are REQUIRED to file every year.
Specialized Services for Expats in the UAE & Gulf
✔ US Tax Return Preparation (Form 1040)
Accurate, compliant, and optimized for expatriate benefits.
✔ FEIE & Housing Exclusion Calculations
Maximize your tax savings with professional analysis.
✔ FBAR & FATCA Filing
Complete reporting for foreign bank accounts and assets.
✔ US Business Owners in the UAE
Tax filing for:
- Free zone companies
- Sole proprietorships
- LLCs
- Self-employed consultants
✔ Crypto Tax Filing
For expats trading on international platforms (Binance, Bybit, OKX, Kraken, etc.)
✔ Late or Missing Tax Returns (Streamlined Procedure)
If you have not filed for several years, we can help you get back on track — penalty-free in many cases.
Why Work With HQ Tax & Financial?
At HQ Tax & Financial Inc., we specialize in the complex tax needs of American expatriates.
✔ Over 10 years of U.S. expat tax expertise
✔ Offices in Chicago, Florida, Dubai, Lahore, and Karachi for easy communication
✔ Trusted by thousands of clients worldwide- Check out testimonials and reviews
✔ Accurate filings reviewed by IRS licensed CPAs, Enrolled Agents, and tax professionals
✔ Experience with high-income expats, entrepreneurs, and CXOs executives
✔ Transparent and reasonable pricing — no hidden fees
✔ Fast turnaround & excellent client support – no bots
Your compliance is our priority.
Simple & Hassle-Free Process
Step 1: Free Consultation
We assess your tax situation and required forms.
Step 2: Submit Documents Online
Send us your W-2s, 1099s, UAE salary certificates, bank account information, balances, etc.
Step 3: Tax Optimization & Preparation
We apply FEIE, housing exclusions, and treaty benefits.
Step 4: Filing & Delivery
We file your return electronically and provide a full copy for your records.
Ready to File Your US Taxes From the UAE or Gulf?
Whether you are an employee, self-employed, business owner, or investor, we make your expat tax filing stress-free and IRS-compliant.
