Buying property as a Belgian: rights and options
As a Belgian citizen, you can buy property in Dubai's freehold zones without any restriction. You do not need a visa or residence permit: a valid Belgian passport is all that is required.
Ownership is registered with the Dubai Land Department (DLD) and you receive a Title Deed in your name. This proof of ownership is comparable to a land-registry extract in Belgium, but it is managed centrally and digitally.
Belgian buyers enjoy the same advantages as all foreign buyers: full freehold ownership, no restrictions on resale, and the option to apply for an investor visa (Golden Visa) for property from AED 750,000.
Belgian tax obligations
As a Belgian tax resident, you are taxable on your worldwide income. Foreign real estate must be declared in your personal income tax return. Since 2021, Belgium has assigned a cadastral income (KI) to foreign real estate.
You must report the foreign property to the Belgian Measurements and Valuations Administration (the former land registry), which determines a KI based on the 1975 rental value. This KI is then indexed and included in your tax return.
The tax is calculated on the indexed KI, increased by 40%. As there is no double-taxation treaty between Belgium and the UAE, the Dubai property is taxed in Belgium, but the rate is generally favourable because the KI system is applied rather than the actual rental income.
Importantly, contact your Belgian accountant or tax adviser for personal advice. The rules on foreign real estate continue to evolve and differ from the Dutch Box 3 system.
The purchase process from Belgium
The purchase process for a Belgian buyer is identical to that of other foreign buyers:
1. Selection: choosing the right property based on your objective and budget 2. Reservation: signing the MOU (Memorandum of Understanding) and paying a deposit (10%) 3. Due diligence: verification of the ownership status, any mortgages and service charges 4. Transfer: registration at the DLD with payment of the 4% transfer fee
If you cannot be physically present, you can have a Power of Attorney drawn up by a Belgian notary. This must be provided with an apostille (Hague apostille stamp) by the Belgian Federal Public Service Foreign Affairs.
Augusta Properties has specific experience with Belgian buyers and understands the particulars of the Belgian notarial and tax systems.
Currency exchange and payments
Payment is made in UAE dirhams (AED), which are pegged to the US dollar. As a Belgian buyer, you exchange euros for dirhams, exposing you to EUR/USD exchange-rate risk.
Practical tips for Belgian buyers:
• Use a specialised exchange service or online platform (Wise, Revolut Business, OFX) for better rates than your Belgian bank • Belgian banks such as KBC, BNP Paribas Fortis and ING Belgium offer SWIFT transfers, but the rates are generally less favourable • Consider a currency forward contract if you want to lock in the rate • Be mindful of Belgian anti-abuse legislation: large transfers abroad may prompt questions from your bank: have documentation ready • The National Bank of Belgium requires foreign accounts to be reported via the Central Point of Contact (CAP) if you open a bank account in Dubai
Belgian notary versus the Dubai system
In Belgium you are used to a notary who oversees the transfer of ownership, drafts the preliminary agreement and executes the deed. In Dubai this system does not exist.
In Dubai, the transfer of ownership is registered with the Dubai Land Department (DLD), a government authority. The role of the Belgian notary is fulfilled in Dubai by a combination of:
• The broker: manages the transaction and drafts the MOU • The conveyancer/trustee: a licensed office that handles the financial settlement • The DLD: registers the transfer of ownership and issues the Title Deed
Although the system differs from Belgium's, it offers comparable protection. The DLD is a highly regarded government institution and all transactions are digitally recorded and publicly verifiable.