Real estate financing Dubai
There are different ways to finance your Dubai property – we will be happy to explain them to you in detail in a consultation and find the right option for you.
We would be happy to share the basics of real estate financing in Dubai with you in advance:
1. financing with equity
Real estate in Dubai can be purchased quickly and easily with equity. The capital has to be transferred – we would be happy to advise you on the cost-effective and secure transaction options.
2. financing via the developer
Many developers offer financing programs, so-called payment plans. These work like a payment plan and run over several years until the completion of the object. The payment is usually made with a smaller initial sum and then according to the progress of construction.
3. financing through Dubai Bank
The procedure is basically the same as with a German credit institution, after a credit check, a loan is approved. Buyers from abroad receive a maximum loan amount of up to 60% of the property value.
4. financing through a German Bank
If you want to finance a foreign property with a bank from Germany, this is also possible in principle. However, the banks usually require special collateral, such as encumberable property in Germany. The bank’s loan claim is then secured by registering a land charge.Translated with www.DeepL.com/Translator (free version).
FAQ: Financing real estate Dubai
A bank account is not absolutely necessary. However, it is highly recommended to open a local bank account, as the property has to be maintained locally and rental income is generated.
We would be happy to advise you on the options available here. In principle, a property can be purchased with financing from your home country or locally via a mortgage. For off-plan properties in particular, it is very attractive to purchase the property directly from the developer via a so-called payment plan. You only have to make a down payment and then pay for the property in instalments. A large part of the purchase price only becomes due on completion.
We also work with German banks on this and can advise you on the options available.
There are basically no restrictions on transferring money to the UAE. We will be happy to advise you on the options to minimise your transaction fees when transferring money to the UAE.
There are some developers (such as Emaar) who accept payment with cryptocurrencies.
There is no income or other wealth tax in Dubai. Currently, there is only a value-added tax, which was introduced in Dubai in 2018.
Yes, of course. Here in Dubai, we distinguish between long-term rentals (longer than 6 months) and short-term rentals (e.g. AirBnB).
We will be happy to support you in the long-term letting of your property and find the right tenant for you. If you are interested in a short-term rental, we can also offer you an interesting service package.
Of course, we will find out together with you which type of letting is most lucrative for your property.
