See Cross-Border Tax Basics
Managing taxes across two countries doesn’t have to be stressful.
Whether you're already a dual citizen or just starting the process, knowing how taxes work between countries can help you avoid costly mistakes.
Do I Pay Taxes in Both Countries?
Maybe — but not always. Most countries have something called a “double taxation treaty.” This agreement helps prevent you from being taxed twice on the same income. It usually works by allowing you to:
- Claim a credit in one country for taxes paid in the other
- Exclude some income from taxes, depending on your situation
Each country has its own rules, so your strategy will depend on where you live, where you earn income, and where you’re becoming a citizen.
Talk to a cross-border tax specialist to better understand your personal scenario.
Common Scenarios
Here are some everyday examples where dual citizens face cross-border tax issues:
- Living in one country, working in another: You might owe tax in both places, but treaties usually help reduce or eliminate double taxation.
- Owning property abroad: You may have to report rental income or capital gains in the country where the property is — and possibly where you live, too.
- Having investments or foreign bank accounts: Some countries require you to report these, even if you don’t owe tax on them.
Unsure what applies to you? Ask a tax expert who understands both countries.
Special Note for U.S. Citizens
If you’re a U.S. citizen or Green Card holder, the U.S. requires you to file taxes every year — even if you live in another country. This is called citizenship-based taxation, and it’s rare.
The good news: You may qualify for tools like:
- The Foreign Earned Income Exclusion
- Foreign tax credits for what you pay abroad
…but you still need to file.
Best Practices
Want to avoid headaches? Here’s what we recommend:
- Stay organized: Keep records of all income, assets, and tax filings.
- Know your treaties: Learn if your two countries have a tax agreement.
- Get expert help: Tax laws are complex — especially when two governments are involved.
Cross-Border Tax FAQ
Do I need to file in both countries every year?
Yes. Golden Visa holders can live, work, and study in the UAE without needing a local sponsor or employer.
What about inheritance or property taxes?
No. There’s no physical presence requirement to maintain your Golden Visa status.
What if both countries claim my income?
Not directly. UAE citizenship is very limited and typically granted by special decree. The Golden Visa is for long-term residency only.