Buying Property in Dubai from the Netherlands

Can a Dutch resident buy property in Dubai?

Yes, foreign nationals, including Dutch citizens, may buy property without restriction in Dubai's designated freehold zones. There are more than 60 freehold areas, including popular districts such as Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle.

You do not need a residence permit, visa or work permit to acquire ownership. All you need is a valid passport. Upon completion, you receive a Title Deed from the Dubai Land Department (DLD), making you the outright owner.

When buying property worth at least AED 750,000 (approx. EUR 190,000), you may qualify for a ten-year investor visa (Golden Visa), allowing you to live and work in the UAE.

Tax consequences in the Netherlands: Box 3

As a Dutch tax resident, you must declare foreign real estate in your tax return. Property in Dubai falls under Box 3 (savings and investments) of Dutch income tax.

Since 2023, the Dutch tax authority has used actual return as the basis in Box 3 for real estate. This means you pay tax on the equivalent of the assessed value (the market value) of your Dubai property, less any related debts.

Importantly, rental income from Dubai is not taxed as income in the Netherlands, but the asset (the value of the property) counts towards the Box 3 levy. There is no double-taxation treaty between the Netherlands and the UAE for this purpose, but since the UAE levies no tax, no double taxation arises in practice.

We always recommend consulting a specialised tax adviser about your personal situation. Augusta Properties can put you in touch with advisers experienced in Dutch–Dubai real estate structures.

Buying remotely: the process

Many buyers from the Netherlands purchase property in Dubai without being physically present. This is entirely legal and common practice. The process runs as follows:

1. Orientation and selection: we send you a shortlist with market analysis and virtual tours 2. Power of Attorney: you authorise a representative in Dubai to act on your behalf. The Power of Attorney must be drawn up by a notary in the Netherlands and provided with an apostille 3. Signing the MOU: the Memorandum of Understanding is signed digitally or by courier 4. Deposit: you transfer 10% of the purchase price to the escrow account of the broker or the trustee 5. Transfer of ownership: your representative completes the transaction at the DLD

The entire process can be completed in 2–4 weeks. Augusta Properties has extensive experience guiding remote purchases for buyers from the Netherlands.

Currency exchange: euros to dirhams

The UAE dirham (AED) is pegged to the US dollar at a fixed rate of AED 3.6725 per USD. This means your currency exposure is primarily EUR/USD risk.

For transferring large amounts, we recommend using specialised currency exchange services rather than your bank. Services such as Wise (formerly TransferWise), CurrencyFair and OFX generally offer better exchange rates and lower charges than traditional banks.

Tips for currency exchange: • Compare rates from at least three providers • Consider a forward contract if you want to lock in the rate for a future payment • Allow for the SWIFT transfer time (1–3 business days) • Keep all transaction records for your Dutch tax return • Some developers also accept payment in euros or dollars: ask about this

Dutch mortgage versus Dubai financing

You cannot take out a mortgage in the Netherlands for property in Dubai: Dutch banks do not finance foreign real estate outside the EU.

In Dubai, however, you can obtain a mortgage as a non-resident from local banks such as Emirates NBD, ADCB, Mashreq Bank and HSBC. The conditions for non-residents are:

• Maximum loan-to-value (LTV): 50% for non-residents (versus 75–80% for residents) • Interest rate: 4.5–6.5% variable, depending on the bank and your profile • Term: up to 25 years • Minimum property value: typically AED 1,000,000 • Required documents: passport, bank statements (6 months), payslips or annual accounts, proof of existing real estate

Alternatively, many buyers from the Netherlands opt for a developer payment plan (for off-plan projects) or finance the purchase from their own funds.

Common pitfalls for buyers from the Netherlands

Based on our experience with hundreds of buyers from the Netherlands, these are the most common pitfalls:

• No due diligence on the developer: always check the RERA registration and track record • Underestimating service charges: these vary widely by building and can amount to 2–4% of the property value per year • Insufficient research into the letting market: not every area offers the same yields • Ignoring exchange-rate movements: the euro–dollar rate can significantly affect your investment • Starting the Power of Attorney procedure too late: an apostille takes time; begin at least 3 weeks before the planned transfer • No professional guidance: do not economise on a good broker; it prevents costly mistakes

Augusta Properties is registered with RERA (licence 52101) and understands the specific needs of buyers from the Netherlands, providing full guidance in English to help you avoid these pitfalls.

Personal guidance from Augusta experts

Every situation is different. Our advisors would be pleased to discuss your requirements, entirely without obligation.