If you want to buy property in Dubai from Germany, two questions decide how the purchase feels afterwards. The first is how Dubai’s process and costs work. The second is how Germany taxes you, because as a German tax resident you are taxed on worldwide income. Dubai agents explain the first well. On the second, German-language and English-language guides give opposite answers, and the disagreement is not small: some say Dubai rent is exempt in Germany but raises your tax rate (Progressionsvorbehalt), others say it is fully taxable.
Short answer: Germans can buy freehold property in Dubai’s designated areas, and the UAE does not tax personal rental income. Germany does. The Germany-UAE double taxation agreement stopped applying on 31 December 2021, so most current sources say Dubai rent is declared in Anlage V and taxed at your normal German rate, and a sale within ten years of purchase can be taxable under § 23 EStG. A few guides still describe the old treaty exemption, and that is where buyers get misled.
Published: 12 November 2026
We read the German Federal Ministry of Finance (BMF) treaty-status material as far as we could reach it, GTAI (the German government’s trade agency) on UAE tax, the text of § 23 EStG at gesetze-im-internet.de, and German- and English-language guides from tax advisers, brokers and developers, on 11 November 2026. The BMF’s own pages blocked our automated access, so the treaty-status finding rests on a BMF treaty-list entry as quoted in search results, GTAI, and several consistent secondary sources; we say so where it matters. This is general information, not tax or legal advice. Confirm your own case with a German Steuerberater, and a Sanaya agent can walk you through the Dubai side.
Is there a tax treaty between Germany and the UAE in 2026?
No treaty currently applies. Sources consistently say the Germany-UAE double taxation agreement ceased to apply on 31 December 2021 and that no successor is in force. Germany told the UAE on 14 June 2021 that it did not intend to extend it, according to two adviser pages. GTAI’s article of 19 April 2024 says the treaty “lief am 31. Dezember 2021 aus” and that it had found no efforts toward a new one. A search summary of the BMF letter of 7 January 2026 (the treaty-status list as of 1 January 2026) shows the UAE entry with application from 1 January 2009 to 31 December 2021, and the UAE also appears in the list of agreements no longer in force. We could not open that BMF document ourselves.
Without a treaty, Germany’s own unilateral rules apply. GTAI says both the credit method and the deduction method give no relief when the UAE levies no tax, so UAE income is taxed in Germany as domestic income for people with unlimited German tax liability.
One development is worth watching but not relying on. One Dubai broker site says a state visit on 9 to 11 September 2026 produced a joint declaration naming double-taxation avoidance among topics still to be negotiated, and that no new agreement is signed. We could not verify that declaration’s text. Treat a new treaty as a possibility, not a plan, and re-check before you rely on it.
Why do some German buyer guides still describe a treaty exemption?
Because the exemption was real until the end of 2021, and some guides were never updated or mix it with moving to the UAE. Under the old treaty, rental income from Dubai property was exempt in Germany but counted for the Progressionsvorbehalt under § 32b EStG, meaning it raised the tax rate on your other German income. Haufe, a German tax publisher, describes this as the exemption method with progression proviso, with the income reported in Anlage AUS.
Here is what the sources we read say now.
| Source | What it says about Dubai rent for a German tax resident | How to read it |
|---|---|---|
| GTAI (German government trade agency, April 2024) | Treaty ended 31 Dec 2021; UAE income taxed in Germany as domestic income | Government-backed source |
| Steuerberatung PSK (adviser, October 2026) | Treaty out of force since 31 Dec 2021; no known successor; UAE tax rarely arises so § 34c credit often irrelevant | Adviser page, dates match GTAI |
| Dubaihaus (broker, article dated May 2026 but citing September 2026 events) | Treaty expired 31 Dec 2021; rent goes in Anlage V; cites BMF page without quoting it | Date inconsistency on the page; broker |
| Tax121 and a Startdxb article | No treaty effect; full German rate applies; rent declared in Anlage V | Consistent with GTAI |
| Swank Development, Schmidt & Partner (brokers/advisers) | Treaty exempts Dubai rent but Progressionsvorbehalt applies | Contradicts the sources above; appears out of date |
| AXD Immobilien (developer-linked) | Cites “DBA 1995/2009”, exemption (Art. 6 and 13) and § 32b progression; says full benefit needs UAE tax residency | Contradicts GTAI; mixes treaty talk with residency change |
| Black Privé (agency) | Treaty ended 31 Dec 2008, never replaced | Outcome matches (no treaty) but the end date differs from 2021 |
The sources even disagree about the treaty’s own dates. The adviser and GTAI pages say it ended on 31 December 2021; GTAI dates the agreement itself to 1 July 2010, another page calls it the 1995 agreement, and Black Privé says 2008. We could not resolve the origin dates. For a buyer today the conclusion is the same: no treaty applies for 2026.
How is Dubai rent taxed in Germany, and which form do you use?
Dubai rent is taxable in Germany as income from letting (§ 21 EStG) at your personal rate, normally declared in Anlage V. Several sources say Anlage V is the form for foreign rental income. The UAE does not tax personal rental income, so there is usually no foreign tax to credit.
Anlage AUS matters mainly when you actually paid foreign income tax and want a credit under § 34c EStG. The adviser pages we read say that for private Dubai rent this usually does not arise. That is also why guides that tell you to use Anlage AUS for Dubai rent are suspect: they are describing the treaty-exemption world.
Ask your Steuerberater two practical questions: which costs on the Dubai property (interest, service charges, management fees, depreciation) are deductible against the rent, and how currency conversion into euros should be documented. We did not verify a depreciation rate for foreign buildings, so we do not quote one. Our guides to service charges in Dubai communities and property manager fees show what the Dubai-side costs actually are.
A worked example without invented rates: if you rent out a Dubai apartment and earn net rent after deductible costs, that net figure is added to your other German income and taxed at your marginal rate, with no UAE tax paid. A broker page that illustrates a 45% top rate over three years of rent shows the scale at the top bracket, but your own rate depends on your total income.
When is a sale gain taxable in Germany?
A gain on Dubai property sold within ten years of purchase can be taxable under § 23 EStG, with a gain under EUR 1,000 for the whole year left tax-free. We read the statute itself: land sales are private sale transactions if the period between purchase and sale is “nicht mehr als zehn Jahre”, and § 23 (3) says gains stay tax-free if the total of all private sales gains in the calendar year is “weniger als 1 000 Euro”.
Property you use only as your own home is excluded from the ten-year rule, either from purchase or completion until sale, or in the year of sale and the two years before. A holiday home that you also rent out does not fit that exemption neatly, so ask your adviser.
Sources disagree on how this applies to Dubai. One broker says the ten-year rule applies to Dubai property “seit 2022” in the sense that the old treaty no longer shields it; a law-firm page on Austrian property says gains exempt under a treaty belong in Anlage AUS for the progression calculation. Under the old treaty, a Dubai sale gain would likely have been exempt, so the treaty’s end is exactly what makes the ten-year rule relevant again. If your first Dubai purchase falls in 2026, the earliest sale outside the window would be 2036 in rough terms; confirm the exact counting with your adviser, since the purchase date for off-plan can be argued from contract or handover.
An Austrian and Swiss reader should note the rules differ: this article covers German tax residents only.
What about inheritance and gift tax on a Dubai property?
Germany can tax the inheritance of a Dubai property, and the UAE has no inheritance tax to credit against it. German inheritance tax applies to worldwide assets where the deceased or the heir is a German resident. Advisers cite the five-year rule in § 2 (1) Nr. 1 b ErbStG: German nationals who gave up their German residence stay in extended unlimited liability for five years. The sources we read are advisory pages, not statute text, and they add that UAE has no inheritance tax, that there is no inheritance tax treaty with the UAE, and that certain German relief provisions do not extend to third-country property.
The practical Dubai-side task is estate planning for the property itself, which our guide to inheritance and estate planning for Dubai property owners covers. Get German and UAE advice together; a will that works in one country may not be recognised the way you expect in the other.
What changes if you move to Dubai yourself?
Moving changes your tax residency only if you actually give up your German residence and habitual abode; buying property does not. Several guides, including AXD, state that the full tax benefit applies only with UAE tax residency, and that without giving up your German residence your worldwide income stays taxable at home.
If you do move, the exit tax in § 6 AStG applies only if you hold at least 1% of a corporation (Kapitalgesellschaft) in private assets and were unlimited German tax resident for at least seven of the last twelve years, according to the advisory sources. It taxes a deemed gain on those shares. Real estate and sole proprietorships are not covered. If you hold no such shares, § 6 AStG is not a purchase issue at all. Several 2025 and 2026 sources also discuss funds and ETFs; one says holdings above a size threshold count, but that appears in only one source and we did not verify it. Do not plan a move around a blog post: take advice before you give up German residence.
What does it cost to buy property in Dubai from Germany?
Budget for the 4% Dubai Land Department (DLD) transfer fee, a small admin fee, a trustee office fee on resale purchases, and agent commission if applicable, before currency costs. Search results from several 2026 guides agree on the main numbers and differ on the small ones. We could not open the DLD’s own fee schedule in this session, so check against the DLD or Dubai REST app before you commit. Our buying costs guide goes line by line.
| Cost | Commonly quoted figure | Note |
|---|---|---|
| DLD transfer fee | 4% of the purchase price | Described in some guides as split 2% buyer and 2% seller by law; in practice the buyer usually pays all of it |
| Administrative fee | AED 580 in most sources | One guide totals the fixed fees at AED 4,720 for a resale |
| Trustee office fee (resale) | AED 4,000 plus 5% VAT (AED 4,200) at AED 500,000 and above; AED 2,000 plus VAT (AED 2,100) below | One source lists a premium AED 6,000 tier; off-plan has no trustee office fee |
| Mortgage registration | 0.25% of the loan value plus small fixed fees | Only if you borrow in Dubai |
Example: on an AED 2 million resale, the DLD fee is AED 80,000, the admin fee AED 580 and the trustee fee AED 4,200 including VAT, which three sources give identically. Agent commission and currency costs come on top. For off-plan purchases, your instalments should go into the project’s escrow account, and our guide to Dubai escrow account rules shows how to verify it before you pay. The Oqood versus title deed guide explains the off-plan registration document.
How do you pay when you buy property in Dubai from Germany?
Euro transfers to a UAE account involve a currency conversion, and the margin usually costs more than the wire fee, so get a quote against the mid-market rate before you choose a route. We did not find a reliable, current, German-bank-specific price list in this session, so we do not quote a margin figure for German banks. Our guide to sending money to Dubai for a property purchase compares bank and specialist routes and shows why quoted margins vary.
Expect your German bank to ask for the contract and the source of funds on a large transfer; keep the sale contract, the Form F or developer agreement, and the payment receipts together, because you will need them for your German tax file too. Our Form F guide explains the resale contract and the deposit and deadline questions. If you buy with crypto, the crypto purchase guide explains why you still pay in dirhams.
Can you finance the purchase, and does it earn a visa?
UAE banks lend to non-residents on stricter terms than residents, and the loan-to-value depends on the bank and your profile. Our guide on whether a foreigner can get a mortgage in Dubai shows why every guide quotes a different cap, and mortgage versus cash sets out the trade-off. Using equity in German property instead is a German-bank and tax question we did not research; ask your Steuerberater about interest deductibility before you borrow.
For visas, the Golden Visa route needs property worth at least AED 2 million. The GDRFA Dubai investor page says the owner must hold property with a total value of no less than AED 2 million certified by a DLD statement, and mortgaged property is acceptable there. Sources disagree on the term: the u.ae portal lists five years, DLD’s investor page says a 10-year renewable permit. Our Golden Visa guide and the 2-year property investor visa guide set out the routes. A visa is optional. Note that a visa alone does not change your German tax residency, as above.
Can you buy property in Dubai from Germany without travelling to sign?
You can sign through a power of attorney, but the rules are specific, so use our dedicated guide and have the wording checked before you sign anything. Our power of attorney guide explains the current requirements. Before paying anything, run the checks in our guide on verifying a Dubai property listing. The full step-by-step process for foreign buyers is the place to start if you have not bought before.
How do German buyers compare with UK, US and Canadian buyers?
Germans face worldwide taxation without a treaty, the UK has its own HMRC rules, and Americans and Canadians have reporting forms on top. British buyers can read buying from the UK and UK tax on Dubai property; Americans buying from the USA; Canadians buying from Canada.
If you are comparing areas, our guides to Dubai Marina, Downtown Dubai and Dubai Hills Estate are good starting points.
Checklist: how to buy property in Dubai from Germany without a tax surprise
- Ask a German Steuerberater to confirm the treaty status for the tax year in question before you model any returns.
- Model net rent at your full marginal German rate, not at a treaty-exempt rate.
- Note the purchase date and keep the contract: the ten-year clock under § 23 EStG matters at sale.
- Budget the 4% DLD fee, admin fee and trustee fee (AED 80,000, AED 580 and AED 4,200 on a AED 2 million resale).
- Get a written currency quote before transferring.
- Check the property and seller against official records before you pay.
- Plan for inheritance: a Dubai property is inside the German inheritance tax net for German residents.
- Do not plan an exit from Germany around a property purchase.
Frequently asked questions
Is there a tax treaty between Germany and the UAE?
Not currently. Sources including GTAI say the agreement ceased to apply on 31 December 2021 and no successor is in force. Some broker pages still describe an exemption; they conflict with GTAI.
Do I pay tax on Dubai rent if I live in Germany?
Yes in Germany, no in the UAE. The UAE does not tax personal rental income, but Germany taxes the worldwide income of its tax residents. Most current sources say to declare it in Anlage V.
What is the Progressionsvorbehalt and does it apply to Dubai?
It is the rule in § 32b EStG that treaty-exempt foreign income still raises the rate on your other income. It applied while the treaty was in force. With no treaty, most current sources say the rent is simply taxable, so the rule is not the right model.
Do I use Anlage AUS or Anlage V?
Adviser sources say Anlage V for rent, and Anlage AUS mainly where foreign tax was actually paid and credited under § 34c EStG. Ask your adviser, since a few guides say Anlage AUS.
Is the sale of a Dubai property taxable in Germany?
It can be. A sale within ten years of purchase is a private sale transaction under § 23 EStG, and total gains under EUR 1,000 for the year stay tax-free. Own-home use is excluded.
Will buying Dubai property make me tax-resident in the UAE?
No. Tax residency depends on where you live, not where you own property, and your German residence stays unless you actually give it up.
Does the exit tax (Wegzugsbesteuerung) apply to buyers?
Only to people who move away and hold at least 1% of a corporation, per the sources we read. Real estate is not covered.
What does buying cost in Dubai besides the price?
Roughly the 4% DLD fee, AED 580 admin fee and a trustee fee on resale, plus any agent commission and currency costs. On AED 2 million that is AED 80,000, AED 580 and AED 4,200.
Can I get a Golden Visa with Dubai property?
Property worth at least AED 2 million can qualify, according to GDRFA. Sources disagree whether the term is five or ten years.
Does Germany tax inheritance of a Dubai property?
Generally yes for German residents, and the UAE has no inheritance tax to credit against it, according to adviser sources. Take German and UAE advice on a will.
Talk to Sanaya about buying from Germany
Sanaya Real Estate helps overseas buyers with buying, selling, renting and property management in Dubai, and offers mortgage services and Golden Visa assistance. Our offices are in Dubai and London. Tell us your budget, whether you want ready or off-plan, and whether you plan to let the property, and an agent will walk through the Dubai side with you. For the German tax steps, use a German Steuerberater. Reach us through our contact page, call +971 4 566 2368 or email info@sanayarealestate.com.
Message Sanaya on WhatsApp: +971 50 436 5316
Sources checked
- GTAI, “VAE: Steuerrecht” (19 April 2024), read in full via fetch
- BMF letter of 7 January 2026 (treaty-status list as of 1 January 2026), seen only via search summary; BMF pages blocked automated access
- § 23 EStG at gesetze-im-internet.de, read directly
- Steuerberatung PSK (October 2026), Dubaihaus, AXD Immobilien, Haufe, Swank Development, Schmidt & Partner, Black Privé, Tax121, Startdxb
- GDRFA Dubai investor residence page (AED 2 million), via search summary
- DLD fee guides: Real Estate Club Dubai, JRE, Dubai Fast Living, vCapital, Kingdom by MAG and others (search summary; DLD’s own schedule not opened)
- Adviser pages on § 2 ErbStG and § 6 AStG (not statute text)
