Dubai Property for German Buyers
0% tax. 6-hour direct flights. Strong Euro buying power. Here's why German investors are increasingly turning to Dubai property.
Why German Buyers Choose Dubai
Escape progressive taxation. Earn tax-free rental income. Dubai offers German investors a compelling alternative to the domestic property market.
Germany vs Dubai: Tax Comparison
The numbers that make German property investors reconsider.
| Tax Type | Germany | Dubai |
|---|---|---|
| Rental Income Tax | 14-45% | 0% |
| Capital Gains Tax | 0-45%* | 0% |
| Purchase Tax (Grunderwerbsteuer) | 3.5-6.5% | 4% |
| Annual Property Tax | Grundsteuer | None |
| Inheritance Tax (UAE) | 7-50% | 0%** |
German Tax Obligations
German tax residents (unbeschrankt steuerpflichtig) may still owe German tax on worldwide income. *German property CGT is 0% if held over 10 years; taxable at marginal rates if sold earlier. **German inheritance tax (Erbschaftsteuer) may still apply to worldwide assets. Consult a Steuerberater with cross-border expertise. This is not tax advice.
5-Step Buying Process
From Berlin to Dubai title deed. Here's how it works.
Research and Budget
Define your budget in EUR. Research areas (Marina, Downtown, JVC). Factor in total costs: property price + 7-8% in fees (4% DLD, 2% agency, 1-2% other).
Lock in Your Exchange Rate
EUR/AED volatility can cost you thousands. Lock a rate with a specialist broker before you commit. Potential savings vs banks: 1-3%.
Reserve the Property
Pay 10% booking deposit to secure. Sign Sales Purchase Agreement (SPA). For off-plan: Oqood registration with DLD.
Complete Payment
Transfer remaining funds per schedule. Ready property: balance on transfer. Off-plan: staged payments over 2-3 years (30/70, 50/50 plans).
Register and Collect Title
Final transfer at Dubai Land Department. Pay 4% DLD fee. Receive title deed. You now own freehold property in Dubai.
Golden Visa for German Buyers
Buy AED 2M+ property, get 10-year UAE residency. No employer needed. Sponsor your family. No strict minimum stay requirement.
Frequently Asked Questions
Can German citizens buy property in Dubai?
Yes. German citizens can buy freehold property in designated areas with no restrictions. No visa required to own, though Golden Visa available through investment.
How does Dubai property tax compare to Germany?
Dubai has 0% income tax on rental and 0% CGT. Germany taxes rental at 14-45% and property sales within 10 years at marginal rates (up to 45%). After 10 years, German CGT is 0%.
What exchange rate will I get for EUR to AED?
Banks charge 2-4% margin. Specialist brokers offer 1-3% better rates. On an AED 2M purchase, that's potentially EUR 10,000+ saved.
How long is the flight from Germany to Dubai?
Direct flights: ~6 hours from Frankfurt, Munich, or Berlin. Emirates, Lufthansa, and FlyDubai operate multiple daily services.
Can I get a mortgage as a German resident?
Yes. UAE banks lend to non-residents: 50-60% LTV, 25-year terms, ~4-5% rates. Need German bank statements and proof of income.
Legal Disclaimer
This guide is for informational purposes only and does not constitute financial, tax, or legal advice. Property investment carries risks including loss of capital. Exchange rates fluctuate and past performance is not indicative of future results. German tax residents should consult a qualified Steuerberater regarding their obligations under German tax law and the Germany-UAE Double Taxation Agreement. MyCurrencyTransfer is a comparison service and does not provide property purchasing services.