Buying property in Dubai as a German — Costs, Taxes & Requirements 2025

The real estate market in Dubai has become one of the most attractive destinations for international investors — particularly as a dynamic metropolis with modern infrastructure and a flourishing real estate market. Especially for investors from Germany, Austria and Switzerland (DACH region), the Emirate offers a combination of high, tax-free returns, legal security and a dynamic market environment. However, buying property abroad requires precise knowledge of local conditions. This guide provides you with all the facts about the costs, taxes and requirements for buying property in Dubai in 2025.

Why are Germans investing in Dubai in 2025?

German investors' interest in Dubai real estate remains high. This is due to four fundamental benefits that the Emirate offers:

• 0% tax on rental income: There is no income tax in the UAE. Rental income generated by your property in Dubai is 100% tax-free. This significantly maximizes your cash flow and net return compared to locations in Europe.
• High returns: The rental market in Dubai is strong and diversified. Gross rental yields of between 6% and 8% per year are realistic, depending on the location and type of property. These returns are barely achievable on the German market.
• Stable economy & heavily regulated market: The UAE economy is robust and growing continuously. The real estate market is closely monitored by the Real Estate Regulatory Agency (RERA), which ensures transparency and security for buyers. Laws such as the escrow system (escrow accounts) protect investor funds in off-plan projects.
• High demand from expats & tourism: As a global business and tourism hub, Dubai continuously attracts professionals, entrepreneurs and visitors. This ensures a consistently high demand for rental accommodation and minimizes the risk of vacancy.

Investors find particularly attractive value for money in popular districts such as Jumeirah Village Circle (JVC) or Dubai Marina, as high-quality real estate is offered here at a moderate price compared to other major cities.

Requirements for buying real estate as a German

The process for buying property in Dubai as a German is simple and transparent. Emigrants from the DACH region (Germany, Austria, Switzerland) can purchase real estate in Dubai as private individuals without restrictions, provided they comply with local real estate laws and legal frameworks. An overview of the most important requirements:

• No residence requirement: You don't have to be a resident of the UAE to purchase a property. The entire purchase of real estate can be carried out from Germany.
• 100% property for foreigners: In the so-called “freehold” zones, foreigners can acquire unrestricted ownership of land, with private individuals receiving full ownership rights in these areas and legally securing their rights through the land register entry.
• Documents required: All you need to make a purchase is a copy of your valid passport. As part of the KYC (Know Your Customer) process, proof of address and source of funds may also be required.
• Minimum age & compliance: The minimum age for buying a property is 21 years. All transactions are subject to the UAE's strict compliance and anti-money laundering policies.

The real estate laws in Dubai provide private individuals from the DACH region with a clear legal framework when purchasing real estate and protect real estate ownership and ownership rights in the designated free hold areas.

Cost of buying property in Dubai 2025

In addition to the pure purchase price, there are additional costs. These are transparent and regulated by law. Especially when buying a house in Dubai, you should note that the additional costs may differ depending on the type of property. The total costs of a Dubai apartment or house are as follows.

Additional purchase costs (official data)

• 4% DLD transfer fee: This is the most important fee to be paid to the Dubai Land Department (DLD). It corresponds to the German real estate transfer tax and amounts to 4% of the purchase price.
• 580 AED Title Deed Fee: An administration fee for issuing the title deed.
• 2% brokerage commission (usual): When buying an existing property, a brokerage commission of 2% of the purchase price is usually due. For off-plan projects directly from the developer, this fee is waived.
• 4,200-4,500 AED NOC fee: When buying an existing property, a “No Objection Certificate” (NOC) from the developer is required. This fee covers the administrative costs of the transfer of ownership.
• Service charges per year: These are annual fees for maintaining common areas such as pools, gyms, and building infrastructure. They vary greatly depending on location, equipment and area and range between approximately 15 and 40 AED per square foot.

Sample calculations

Example 1:1-room apartment for AED 1.5 million (approx. 375,000€)

• Purchase price: 1,500,000 AED
• DLD transfer fee (4%): AED 60,000
• Title Deed Fee: 580 AED
• NOC fee (approx.): 4,200 AED
• Total cost (approx.): AED 1,564,780

Example 2: Villa for AED 5 million (approx. €1,250,000)

• Purchase price: 5,000,000 AED
• DLD transfer fee (4%): 200,000 AED
• Title Deed Fee: 580 AED
• NOC fee (approx.): 4,200 AED
• Total cost (approx.): AED 5,204,780

Taxes for German investors — what really applies

The issue of Dubai taxes is a decisive factor. The rules are clear and beneficial:

• 0% income tax in the UAE: You do not pay income tax in the UAE on rental income from your property in Dubai.
• No property tax: There is no annually recurring property tax as in Germany.
• No wealth tax: Owning real estate in Dubai is not subject to wealth tax.
• No capital gains tax: Profits from selling a property are also tax-free in the UAE.

For German taxpayers, the double taxation agreement (DTA) between Germany and the UAE is relevant. According to Article 6 of the DTA, the right to tax income from immovable property is assigned to the state in which the property is located — i.e. the UAE. Since the UAE does not levy taxes on rental income, they remain legally tax-free for residents in Germany. In Germany, income is only subject to progression.

Up-to-date information on tax regulations is essential for investors to make well-founded decisions and minimize tax risks.

Financing for Germans — up to 65% possible

Financing Dubai for non-residents is available at various banks in the UAE.

• Requirements: Applicants must provide proof of a regular minimum income (usually from €8,000 net/month), an impeccable credit profile (SCHUFA information) and sufficient equity.

Especially when it comes to real estate financing in Dubai, it is advisable to have an experienced partner at your side who, as a trustworthy partner, helps you select the right financing solution and offers access to the best conditions.

• Interest rates 2025: Mortgage interest rates are based on EIBOR (Emirates Interbank Offered Rate) and are typically between 4.5% and 6% p.a.
• LTV limits for non-residents: Banks generally finance up to 65% of the purchase price (loan-to-value) for non-residents. 35% of the purchase price plus additional costs must be contributed as equity.

Example: Financing a 1.5 million AED property

• Purchase price: 1,500,000 AED
• Max loans (65%): AED 975,000
• Required equity (35%): AED 525,000
• Plus additional costs (approx. 4.5%): 67,500 AED
• Total equity requirement: approx. AED 592,500

Buying process step by step (realistic, correct)

The buying process in Dubai is standardized and secure.

1. Select the object: You choose a suitable property — either an existing property or a Dubai off-plan project.
2. Reservation Agreement: You sign a reservation agreement and pay a deposit (usually 5-10%) to secure the unit.
3. SPA (Sale and Purchase Agreement): The actual purchase contract is drawn up and signed by the buyer and seller (or property developer).
4. Payment & Oqood: For off-plan projects, you pay according to the payment schedule set out in the SPA. With the first installment, the property is registered in the pre-cadastral register (Oqood).
5. Registering with DLD: The transaction is officially registered with the Dubai Land Department.
6. Key handover: After full payment and completion of the property, you will receive the keys and the title deed.

Dubai Land Department (DLD) registration process

The registration process with the Dubai Land Department (DLD) is a central part of buying real estate in Dubai and ensures legal ownership of your property for you as a buyer. As soon as you have decided to buy a house, apartment or villa, the official transfer of ownership begins when you register with the DLD — a crucial step to secure your investment in the Dubai real estate market.

First, you need to prepare all the necessary documents. This usually includes your valid passport, the signed purchase contract and — in the case of existing properties — a No Objection Certificate (NOC) from the property developer. These documents form the basis for registering your property with the Dubai Land Department.

The next step is payment of the legally required registration fee, which amounts to 4% of the property value. This fee is comparable to real estate transfer tax in Germany and is paid directly to the DLD. After payment, you or your authorized real estate agent submit all documents to the DLD. The authority carefully reviews the documents to ensure that all requirements for buying property in Dubai are met.

After successful verification, the property is officially registered in the land registry system of the United Arab Emirates. You will then receive the Title Deed, which shows that you are the legal owner. The purchase process is now complete and your ownership of the property in Dubai is legally secured.

Especially for buyers from abroad, it is advisable to hire an experienced real estate agent or a specialized company. A broker with market knowledge in Dubai will not only help you select suitable real estate offers, but will also guide you through the entire registration process with the DLD. This ensures that all requirements and fees are met correctly and that your property purchase in Dubai runs smoothly.

Whether you choose an apartment in Dubai Marina, a villa in Palm Jumeirah or a house in one of the up-and-coming districts, registration with the Dubai Land Department is mandatory for all types of property. Therefore, find out the current prices, fees and requirements early on in order to purchase your dream property in Dubai safely and efficiently.

Off-plan vs. ready — which makes more sense for Germans?

The decision between a finished (ready) and a property under construction (off-plan) depends on your goals. Off-plan real estate offers investors attractive benefits such as early bird discounts, special conditions and high return potential, as they offer the opportunity to invest early in up-and-coming districts and benefit from future increases in value.

criterion

Off-Plan

Ready (inventory)

returns

Higher potential for value creation until completion.

Immediate rental income from the moment of purchase.

risk

Construction delays possible (minimized by RERA). Property developer selection is crucial.

Lower risk because the object physically exists and can be tested.

liquidity

Flexible payment plans over the construction period protect liquidity.

The entire purchase price must be paid immediately or via bank financing.

prize

Often 10—20% cheaper than comparable finished properties.

Prices are based on current market value.

For investors with a focus on capital growth, a Dubai off-plan purchase is often the strategically superior choice. For security-oriented investors who are looking for immediate cash flow, an existing property can be useful.

Golden Visa 2025 — Requirements for property buyers

Buying a property can pave the way for you to obtain a long-term visa, the so-called Golden Visa.

• Minimum investment: You must purchase a property worth at least AED 2 million (approximately €500,000).
• advantages: The Golden Visa is valid for 10 years, allows you to live, work and study in the UAE, and you can sponsor your family (spouse and children). There is no obligation to reside permanently in the country.
• Funding: The property can also be purchased through financing approved by a local bank.

Best locations for Germans 2025

The choice of location is decisive for investment success. The mentioned districts offer a wide range of investment opportunities, which represent attractive opportunities for both beginners and experienced investors. Here are some of the best neighborhoods for German investors:

• Dubai Marina: Popular with expats, high rental demand, luxurious waterfront lifestyle. Prices for 1-room apartments start at around 350,000€.
• Downtown Dubai: Prestigious location with Burj Khalifa and Dubai Mall, high rents for short and long term rentals. Prices starting at around 450,000€ for a studio.
• Business Bay: Modern business district on the canal, near downtown. Attractive for professionals. Prices starting at around 300,000€.
• Dubai Hills Estate: Green, family-friendly community with golf course and villas. Apartments from around 350,000€.
• Palm Jumeirah: Iconic artificial island for luxury homes with sea views. Apartments start at around 600,000€.
• JVC (Jumeirah Village Circle): Very popular with beginners due to excellent price-performance ratios and high rental returns. Prices for studios start at around 150,000€.

Conclusion — Is Dubai 2025 worthwhile for German investors?

Yes, investing in the Dubai 2025 real estate market is a strategically wise decision for German investors. The market offers a unique combination of stability, high tax-free returns, and a highly regulated environment that protects investors. The high demand due to the steady influx of expats and flourishing tourism ensure solid occupancy and value stability. The clear legal framework and the opportunity to acquire full ownership as a German make the start safe and transparent. In particular, the experience of experienced German real estate agents in Dubai is a decisive advantage, as they identify exclusive offers, offer professional advice and reliably support the entire purchase process.

Contact Life in Luxury for personal advice in German — including financing of up to 65%, pre-launch exclusive projects and full purchase support in Dubai.

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