FAQ –
Answers to all your questions!
Fees and taxes
Ancillary purchase costs in Dubai vary depending on the type of property. The usual additional costs include:
- Regulatory fees: 4% of the purchase price paid to the Dubai Land Department.
- Broker commissions: These usually amount to 2-3% of the purchase price.
- Notary fees: These are calculated as a lump sum and amount to around €1,000 to €2,000.
In addition, depending on the individual situation, costs for powers of attorney or other transaction costs may be incurred. When purchasing real estate as part of a project launch, there are no brokerage commissions – even if you are accompanied by a broker like us throughout the entire purchase process.
Financing
In principle, it is possible to obtain financing for real estate in Dubai through banks. Some German banks also offer financing for real estate abroad. The exact financing options depend on various factors. We will be happy to provide you with individual advice.
Chewing process
In brief: After the consultation and selection of the property, the purchase contract is signed and a down payment of 10% of the purchase price is made. The notary appointment takes place 30 to 60 days after signing the contract, at which the purchase price payment is verified and ownership is transferred immediately.
Title Deed
The title deed is the final proof of ownership and is issued after full payment and completion of the transaction at the Dubai Land Department (DLD), provided the property is completed. There is a separate real estate register called Oqood for properties that are not yet completed.
Taxes on rental income
No, there is no tax on rental income in Dubai. These are tax-free, which makes the real estate market particularly attractive for investors. However, depending on your tax situation and tax residency, the rental income could be taxed in another country.
Visa
Yes, for real estate investments of AED 750,000 (approx. EUR 190,000) or more, it is possible to obtain a temporary residence permit. The duration and conditions of this permit depend on the amount invested. In addition, the requirements for the so-called Golden Visa (10-year visa) have now been relaxed.
Investment security Dubai
Investments in Dubai are considered relatively safe due to several factors:
- Stable economy: Dubai has a diversified and stable economy that is not only dependent on oil, but also on trade, tourism and real estate. This contributes to economic resilience.
- Regulated real estate market: The real estate market is strictly regulated by the Dubai Land Department (DLD), making transactions more transparent and secure. All transactions are documented and monitored, protecting both buyers and sellers.
- Legal protection: Clear laws and regulations govern the purchase of real estate, including ownership rights for foreigners in certain zones.
- Infrastructure and development: Dubai is continuously investing in its infrastructure, which further strengthens confidence in the real estate market. Major projects such as Expo 2020 and the growing development of real estate and tourism facilities are promoting long-term growth.
- Tax advantages: There are no taxes on rental income or capital gains from real estate, which makes Dubai a particularly attractive location for investors.
Off-plan purchase
An off-plan purchase refers to the acquisition of a property that is still under construction or in the planning phase. Buyers often benefit from lower prices and flexible payment plans. Brief process of an off-plan purchase:
- Selection of the property and developer: The buyer selects a project from a reputable developer in a preferred location.
- Reservation agreement and deposit: The buyer concludes a reservation agreement and usually pays 5-10% of the purchase price.
- Purchase agreement (SPA): After the down payment, the purchase agreement is signed, which regulates the payment structure and conditions.
- Payment plan during the construction phase: Further payments are made in installments, depending on the progress of construction (usually 4-6 installments).
- Completion and handover: After the inspection and acceptance of the property, the remaining amount is paid and the title deed is handed over.
Letting
Yes, property owners can rent out their properties. Rental contracts are usually limited to one year and the rental income is tax-free in Dubai. The rent is usually paid in advance for the whole year. The rental agreement must be registered with the Dubai Land Department. You also have the option of renting out your property as a short-term vacation home. In this area we work together with competent partners in our network.
Dubai Land Department (DLD)
The Dubai Land Department is responsible for the registration and regulation of all real estate sales and transfers. It ensures that all transactions are legal and secure and issues the title deeds.
Oqood service
“Oqood” is a service provided by the Dubai Land Department for the registration of off-plan property purchases. It protects the rights of buyers in off-plan purchases by allowing provisional registration of the property before construction is completed
Buying real estate from afar
Yes, many transactions can be completed remotely. Buyers can grant a power of attorney to a lawyer or agent to carry out the purchase process in Dubai on their behalf. We will be happy to advise you on this.
Payment option: Payment Plan
Many developers offer payment plans where the buyer pays the purchase price in installments. These plans vary, often involving payments during construction and in some cases payments after handover, known as a “Post-Hand-Over Payment Plan”.