For most CUSP investors, returns are largely tax-efficient. Here's a simple breakdown of how taxes apply.
Capital gains
0% tax. Neither the UAE nor the US taxes capital gains for non-US individual investors. When your investments grow in value and you sell, the full profit goes to your cash balance.
Note: depending on your country of tax residency, your home country may apply its own capital gains tax. We recommend checking with a local tax advisor if you're unsure.
Dividends:
The US applies a 30% withholding tax only on dividends paid to non-US investors. This is a US federal requirement that applies to all non-US investors worldwide—not a CUSP fee.
Here's how it works in practice:
A stock pays $10 in dividends
$3 is deducted automatically at source
$7 is credited to your CUSP cash balance
No forms, no action needed; it's handled entirely in the background.
US Estate Tax
US stocks and ETFs held by non-US investors are subject to US Estate Tax above a $60,000 threshold — at rates of up to 40% — only in the event of the holder's death. This applies regardless of platform or nationality. If your portfolio approaches this threshold, consider speaking with a qualified tax or estate advisor.
Note: This is general information, not tax advice. Tax rules vary by country and can change; consult a qualified advisor for your specific situation.