Anyone looking to buy an apartment in Dubai will find themselves facing an attractive and diverse market. For a German national, buying an apartment in Dubai can be a challenge. An experienced real estate agent can provide you with optimal support and expertly guide you through the entire purchasing process, even if you are not physically present. Feel free to contact us, and we’ll take care of everything necessary to help you find your dream property in Dubai.
Dubai: Buying an Apartment as a German Citizen: Tax Benefits and Legal Certainty
As a German citizen, investing in the real estate market in Dubai offers several advantages. The United Arab Emirates makes it easy for foreign investors to purchase real estate. The consumer-friendly legal system protects home ownership. The purchasing process is transparent, and property rights are clearly defined.
Germans looking to buy an apartment in Dubai can enjoy numerous tax advantages. In the United Arab Emirates, there is no income tax, capital gains tax, or property tax. Here at Canaletto Sky, we’ll work with you to answer all your questions, find the right apartment to meet your needs, and see the purchase through to completion. Trust in our expertise. Not only do we have in-depth knowledge of the regional real estate market, but we also offer comprehensive advice on legal matters.
What apartments are available?
In Dubai, you can purchase a wide variety of apartments. From a simple studio on the outskirts of the city to a luxury apartment on the beach, anything is possible. Generally, you’ll need to decide in advance on one of the property types listed.
- Ready-to-move-in properties: These apartments are completed and available for immediate occupancy. The price is usually higher. However, the apartment is available right away, which is also important if you do not plan to live in the property yourself but intend to rent it out.
- Resale Properties: These properties have had previous owners and tend to be more affordable. The returns are lower than those on new construction, but still quite lucrative. The investment is particularly worthwhile in established neighborhoods such as Dubai Marina, Downtown Dubai, or Palm Jumeirah.
- Off-plan apartments: You purchase an off-plan property while it’s still under construction. Prices are particularly low. Developers often offer interest-free payment plans. For investors, this type of apartment can be quite lucrative. However, those who want to move in soon or rent it out as quickly as possible will face delays, as completion often takes some time.
What are the requirements?
As a German citizen, you do not need to apply for a visa to buy an apartment in Dubai. Your passport is sufficient. Upon arrival, you will be issued a tourist visa. The visa is free and valid for 90 days.
For off-plan properties, the purchase agreement can be signed even if the buyer is not physically present. For move-in-ready and pre-owned properties, the buyer must be present in Dubai. However, it is also possible to grant power of attorney to someone you trust.
Buying an Apartment in Dubai as a German Citizen—Step by Step
We would now like to explain the step-by-step process of buying a home. We will be using a move-in-ready property as an example.
- The buyer and seller establish the terms of the contract and negotiate the price of the apartment.
- The agreements reached are set forth in the MOU (Memorandum of Understanding). The Memorandum of Understanding is signed by both parties and registered with the DLD. It is customary to make a down payment of ten percent of the purchase price at this stage. This amount serves as a security deposit and is refunded to the buyer upon completion of the transaction.
- In order for the property transfer to take place, both parties must submit a request for a No Objection Certificate (NOC) to the developer.
- The transfer of real estate must be officially registered with the DLD. The buyer must pay a transfer fee equal to four percent of the purchase price.
- In Dubai, payment for real estate is made by check. The amount is due on the day of the property transfer. If the payment is made through a mortgage, a bank representative must be present to handle the necessary paperwork.
- If the seller took out a mortgage at the time of the sale, the buyer must pay it off before applying for the NOC.
- Once all the formalities have been completed, the buyer is given a title deed, and the official transfer of the property takes place. This completes the transaction.
Costs at a Glance
As a German citizen, buying an apartment in Dubai involves various costs. In addition to the purchase price, you should factor in the following fees:
- Registration fee: Four percent of the purchase price must be paid to the DLD.
- Real estate agent’s commission: The commission amounts to about two percent of the purchase price.
- Utilities: These are paid annually and vary depending on the building.
- Financing: If a loan is taken out, 0.25 percent of the purchase price is due for the loan registration.
- Land Registry Entry: The cost of registering the properties in the land registry is expected to be approximately 1,250 euros.
Photo credit: Depositphotos.com – neiezhmakov (Kyrylo Neiezhmakov)
