For US investors
Dubai, for American investors.
A licensed Dubai advisory that works with US private investors, family offices and funds, fluent in the questions that matter to a US taxpayer: ownership, reporting, financing and exits.
- 0%UAE personal income tax, and no UAE capital gains tax on property for individuals
- FreeholdFull ownership for foreign nationals in designated areas of Dubai
- 3.6725Dirhams to the US dollar, pegged since 1997
- 10 yrsGolden Visa residence from AED 2 million of property
Why Dubai
Why US investors buy here.
Currency
No exchange rate risk.
The dirham has been fixed at AED 3.6725 to the US dollar since 1997. Your rent, your purchase price and your sale proceeds are, in effect, dollar denominated.
Tax
No UAE tax on rent or gains.
The UAE levies no personal income tax and no capital gains tax on property held by individuals. US tax still applies to your worldwide income, so the saving is the UAE layer, not the whole bill.
Title
Freehold, registered by the state.
Foreign nationals own freehold property outright in designated areas. Title is issued and recorded by the Dubai Land Department, with no leasehold reversion and no local nominee.
Financing
Mortgages for non residents.
UAE banks lend to non resident buyers, typically 50 to 65 per cent of a ready property's value, with income assessed from the United States. Our Mortgage Advisory team arranges it.
Section 1031
The 1031 exchange and Dubai, answered plainly.
A US property cannot be exchanged into Dubai property tax deferred. Under section 1031(h) of the Internal Revenue Code, real property in the United States and real property outside the United States are not like kind. Proceeds from the sale of a US rental, office or plot do not qualify for deferral into Dubai.
What does work is foreign property for foreign property. If you are selling an investment property outside the United States, including in Dubai itself, the gain can be deferred into Dubai. The 1031 exchange page sets out the full process, the deadlines and what Castilion handles.
What a 1031 exchange is.
A 1031 exchange defers US capital gains tax when real property held for investment is exchanged for like kind property. A qualified intermediary holds the sale proceeds in escrow, the replacement property is identified within 45 days of the sale, and it is acquired within 180 days, under section 1031(a)(3). If the proceeds reach you at any point, the exchange fails.
Foreign property into Dubai.
A US taxpayer selling an investment property outside the United States, whether in London, Lisbon, Mexico City, Toronto or anywhere else outside the US, can defer the gain into Dubai property. Four conditions apply.
The conditions.
- A US qualified intermediary holds the proceeds of the foreign sale in escrow from the day it closes
- The Dubai property is identified in writing within 45 days of that sale
- The purchase closes, and title is registered, within 180 days of that sale
- The Dubai property is held for investment, not as a personal residence
What Castilion coordinates in Dubai.
- Sourcing a qualifying property inside the 45 day identification window, with alternatives for the identification letter
- Structuring the purchase so the escrowed funds flow through the intermediary to the seller or the developer, never through you
- Completing registration with the Dubai Land Department inside the 180 day deadline, with the title deed in your name or your entity's
The sequence
Four steps, two deadlines.
The intermediary runs the exchange. Castilion runs the Dubai side so the deadlines are met.
Engage the intermediary
Appoint a US qualified intermediary before the sale of your foreign property closes. Once proceeds reach you, the exchange is lost.
Proceeds to escrow
The sale proceeds go to the intermediary's escrow account, never to you. The 45 and 180 day clocks start on the closing date.
Identify within 45 days
Identify up to three Dubai properties in writing to the intermediary. Castilion prepares the shortlist and the property details for the identification letter.
Close within 180 days
The intermediary releases funds to the seller or developer at completion. We register the title with the Dubai Land Department inside the deadline.
Selling US property
No deferral into Dubai. Three routes to discuss with your US adviser.
Exchange in the US, buy Dubai separately
Complete a 1031 into US replacement property, keeping the deferral intact, and fund the Dubai purchase from other capital.
Sell, pay the US tax, invest the net
Pay the US capital gains tax on the sale and invest the net proceeds in Dubai, where there is no UAE capital gains tax on the next sale.
Hold the US asset, finance Dubai
Keep the US property and its basis untouched, and buy in Dubai with a non resident mortgage from a UAE bank instead.
Reporting. US taxpayers report worldwide income, so Dubai rental income and any gain on sale are reported in the United States. Foreign bank accounts used for the purchase or for collecting rent may need FBAR and FATCA reporting. A UAE property itself is not a foreign financial account.
General information, not tax or legal advice. Castilion is not a US tax adviser or a qualified intermediary. Every exchange must be run by a qualified intermediary and reviewed by a US tax adviser before you sell. Rules checked 3 November 2026.
Questions
US investors, answered.
Can I 1031 my US rental into Dubai?
No. Under section 1031(h) of the Internal Revenue Code, real property in the United States and real property outside the United States are not like kind. Proceeds from a US sale cannot be exchanged into Dubai property on a tax deferred basis.
Can I 1031 a property in Europe or Latin America into Dubai?
Yes, if the rules are met. Foreign real property held for investment is like kind with other foreign real property, so a sale in London, Lisbon, Mexico City or Toronto can be exchanged into Dubai, provided a qualified intermediary holds the proceeds, the Dubai property is identified within 45 days and the purchase closes within 180 days.
Does Dubai tax my rental income?
The UAE levies no personal income tax on individuals, so there is no UAE tax on your rent. As a US taxpayer you report the rental income in the United States and pay US tax on it under the normal rules.
Can I get a mortgage as a US citizen?
Yes. UAE banks lend to non resident buyers, usually 50 to 65 per cent of a ready property's value, with your US income and credit history assessed. Our Mortgage Advisory team arranges non resident mortgages for US clients.
Can I own freehold property in Dubai?
Yes. Foreign nationals can own freehold property in the designated areas of Dubai, which include most of the districts international buyers consider. Title is registered with the Dubai Land Department in your name.
Is the dirham stable?
The UAE dirham has been pegged to the US dollar at AED 3.6725 since 1997, managed by the Central Bank of the UAE. For a US investor, pricing, rent and sale proceeds carry no exchange rate risk against the dollar.
Official sources, checked 3 November 2026:
- 26 U.S. Code 1031, Exchange of real property held for productive use or investment, Cornell Law School, Legal Information Institute
- Exchanges of foreign property, IPX1031
- Dubai Land Department, Government of Dubai
- Central Bank of the UAE, on the dirham peg, Central Bank of the UAE
Clients on Castilion
Judged by the people we advise.
“Professional, responsive and clearly have a strong understanding of the UAE real estate market.”
Nazeem S.Google review “They go far beyond the traditional role of a real estate agent.”
Edward Z.Google review “The team was professional, approachable, and clear in their communication.”
Ahmed F.Google review “Munji and his team are very professional, diligent, and ready to provide the best service possible.”
Mustapha I.Google review “An incredible company, with a very genuine leadership and competence.”
Joy G.Google review
Excerpts from public reviews on Castilion's Google and Trustpilot profiles. Scores checked 22 October 2026 (Google) and 1 November 2026 (Trustpilot); the profiles show the current figures.
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Tell us what you are selling, what you are holding and what you want Dubai to do for you. An adviser who works with US clients will reply.
Prefer to talk? Call +971 58 670 0664.