Mortgages in or from Dubai

Dubai is a global financial hub connecting markets, investors, and institutions across Europe, Asia, and the Middle East. This creates two main perspectives for real estate financing. On one hand, foreign investors from Europe increasingly invest in Dubai to benefit from a growing property sector and a stable regulatory environment. On the other, investors residing in or holding citizenship of Dubai are expanding into European core markets such as Germany, France, and Spain to diversify their assets across currencies and geographies.

Property Acquisition

1. Foreign Investors Acquiring Property in Dubai

Foreign buyers are subject to a transparent but well-defined property ownership system. Full ownership (Freehold) is only permitted in designated areas, including Palm Jumeirah, Downtown Dubai, Business Bay, and Dubai Marina. In these zones, buyers can obtain full ownership with registration through the Dubai Land Department (DLD). Outside these zones, ownership is limited to leasehold agreements for terms between 50 and 99 years.

The acquisition process follows several stages. After signing a Memorandum of Understanding (MoU) and paying the initial deposit, the transaction is registered with the DLD. Buyers must provide proof of funds and identification, with all payments processed through approved escrow accounts. Once the final payment is made, the title deed is issued electronically and stored in the DLD’s central registry.

No annual property or wealth taxes apply. A one-time transfer fee of four percent is charged, typically split between buyer and seller. Additional costs include registration, notarization, and building service fees. For commercial or short-term rental purposes, permits from the Dubai Tourism and Commerce Marketing Authority (DTCM) are required.

2. Investors from Dubai Acquiring Property in Europe

Buyers residing in or holding citizenship of Dubai can acquire property in most European countries without restriction. In Germany, France, and Spain, the legal process is the same for foreign and domestic investors. Purchases are executed through a notarial deed and registered in the national land registry.

Investors must provide proof of funds and apply for a tax identification number in the destination country. In Germany, buyers are required to pay real estate transfer tax following notarization. In France and Spain, additional registration or documentation fees apply. Owners are then subject to local property taxes and, where applicable, income tax on rental earnings.

The main differences arise in financing and compliance. European banks apply strict due diligence for international income and assets, in accordance with EU anti-money-laundering regulations.

Real Estate Financing

1. Foreign Investors Financing Property in Dubai

Local banks in Dubai offer mortgage loans to international buyers with loan-to-value ratios between 60 and 70 percent. Terms typically range from 10 to 25 years. Applicants must demonstrate stable income and transparent liquidity. Repayment is usually made in UAE Dirham (AED), though some banks allow repayment in US dollars or euros if the borrower earns income abroad.

For new developments, disbursement often occurs in stages linked to construction progress, particularly for off-plan purchases. Developer-backed financing is increasingly popular, offering flexible payment schedules and preferential rates for early buyers.

Banks require comprehensive documentation, including recent account statements, tax returns, employment contracts, and proof of assets. Due to the complexity of cross-border income, approval timelines are usually longer than for domestic buyers.

2. Investors from Dubai Financing Property in Europe

For GCC residents or Dubai nationals acquiring property in Europe, specialized cross-border financing programs are available. International banks based in Dubai or Abu Dhabi offer structured European mortgage solutions for their clients. These loans are issued in euros, while collateral or assets may remain in the investor’s home market.

Loan-to-value ratios typically range from 60 to 75 percent, depending on creditworthiness and property type. Loan terms are usually between 10 and 20 years. The assessment process combines home-market data with property valuation and legal compliance in the target country.

A major advantage of these structures lies in currency stability. Many of these banks maintain correspondent relationships with institutions in Frankfurt, Paris, and London, allowing loans to be issued in euros and repayments made in Dirhams without exposing investors to full currency conversion risk.