Buying property in Dubai as a German citizen

Tax: what applies without a double taxation treaty

The UAE currently levies no income tax on private rental income and no annual property tax. Anyone with unlimited tax liability in Germany, however, is taxed in Germany on worldwide income. The former Germany–UAE double taxation agreement expired on 31 December 2021 (VERIFY whether a new treaty now applies). Rental income from a Dubai apartment must therefore generally be declared in the German tax return if you live in Germany; expenses such as service charges, management and depreciation may be deductible under German rules.

On a later sale, the ten-year holding period for private disposals matters: if more than ten years pass between acquisition and sale, a gain generally remains tax-free under current law (VERIFY). For off-plan purchases, clarify when the period starts and whether a sale before handover counts as the disposal of a contractual right. Buying and selling several properties in quick succession also risks classification as commercial property dealing.

Inheritance and gifts deserve early thought too: if resident in Germany, German inheritance tax generally covers foreign assets, and there is no inheritance tax treaty with the UAE (VERIFY). Local succession law also applies – many buyers therefore register a will with the DIFC Wills Service or a similar body. If you plan to move to Dubai, have the German exit tax rules and extended limited tax liability reviewed.

Transferring money from Germany: EUR into AED

Prices and instalments are paid in UAE dirhams (AED). The dirham is pegged to the US dollar (approx. 3.6725 AED per USD), so for German buyers the EUR/USD rate decides the real price in euros. With an off-plan payment plan spanning several years, the euro cost of each instalment can change noticeably. Our currency converter on the homepage shows the current rate.

Transfers usually go by SWIFT directly to the project's escrow account. German banks ask about purpose and contract for larger amounts; keep the SPA, payment request and proof of funds ready. Specialised FX providers often offer tighter spreads than your main bank – compare rate and fees before each instalment. Payments abroad above EUR 12,500 are reportable in Germany under foreign trade rules; banks often handle this, but check (VERIFY).

Flights, embassy and consulate general

Dubai is well connected to Germany: direct services run from Frankfurt, Munich, Düsseldorf and Hamburg among others, with other airports served depending on season and airline. Flight time is approx. six hours, with a two- or three-hour time difference. Many buyers combine a viewing trip with the purchase on site – much can also be done digitally or by power of attorney.

Consular contacts are the German Embassy in Abu Dhabi and the German Consulate General in Dubai. They help with passports, certifications and emergencies, but not with the property purchase itself. A power of attorney issued in Germany usually needs legalisation and possibly a certified Arabic translation (VERIFY current procedure).

Typical questions from German buyers

• Is Dubai worthwhile despite German tax on rent? – Yes, if the yield still convinces after German tax and FX risk; calculate net.
• Can a German bank finance it? – Rarely directly; equity, payment plans or UAE financing are common.
• Do I need a company or holding? – Usually not for private investors; structures have their own German tax consequences.
• Does buying help with relocation? – From AED 2m a Golden Visa may be possible; visa status alone does not end German tax liability.

German-speaking support in Dubai

Popolari Estates supports buyers from Germany in German and English – from the first assessment through project selection, reservation and contract to handover and letting. Maximilian Popolari is a RERA-registered broker based in Dubai. We prefer a sober approach: we explain payment plans, fees and risks before you sign, and say openly where your tax adviser or lawyer at home needs to be involved.

• Personal first call by video or in person in Dubai
• Shortlisting projects, including checks on developer, escrow account and payment plan
• Support with reservation, SPA and Oqood registration
• Help with handover, snagging and letting