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Buying Dubai Property as a German Citizen (2026)
One fact decides almost everything here, and most guides still get it wrong: there has been no double taxation treaty between Germany and the UAE since 1 January 2022. Germany let it lapse and has not replaced it.
Germany gave notice in June 2021 that it would not renew the 2010 treaty, and it expired on 31 December 2021. Since then there is no treaty relief and no exemption method to argue about: if you are tax resident in Germany, Germany taxes your Dubai rental income and your gain on sale purely under domestic law, at your marginal rate. The UAE charges nothing, so there is no foreign tax to credit either way. Two further points matter: German exit tax does not apply to real estate, and a separate rule can keep you partly within the German net for up to ten years after you leave.
The Treaty Is Gone, and That Changes the Whole Calculation
Germany notified the UAE on 14 June 2021 that it would not renew the double taxation agreement signed on 1 July 2010. The agreement duly lapsed at the end of that year and no agreement has applied since 1 January 2022. The Federal Finance Ministry's own annual list of treaties in force, published each January, carries no current-treaty status for the UAE.
Under the old treaty, income from immovable property was exempted in Germany and only fed into the rate calculation. That is history. Today there is nothing to exempt: your Dubai rental income is simply Einkünfte aus Vermietung und Verpachtung under section 21 of the Income Tax Act, declared on Anlage V with Anlage AUS, taxed at your ordinary marginal rate. If a guide tells you German tax on Dubai rent is avoided or merely rate-adjusted by treaty, it is describing the pre-2022 world.
Selling: the Ten-Year Line
Section 23 of the Income Tax Act taxes a private property sale as a speculative transaction if it happens within ten years of acquisition. Hold beyond ten years and the gain is free of German tax entirely. There is an exception for genuine owner-occupation in the year of sale and the two preceding years. Because there is no treaty, none of this is displaced by UAE taxing rights, and because the UAE levies no capital gains tax there is nothing to credit.
But the Foreign Tax Act can follow you for a decade. Section 2 creates an extended limited tax liability for German nationals who were fully tax liable for at least five of the last ten years, move to a low-tax country - the UAE qualifies - and keep substantial economic interests in Germany. It runs for up to ten years after departure. It reaches German-source income rather than your Dubai rent directly, but your worldwide income, Dubai rent included, can be used to set the rate applied to what you kept in Germany.
Leaving Germany Is About the Dwelling, Not the Calendar
Sections 8 and 9 of the Fiscal Code make you fully tax liable if you have a Wohnsitz - a dwelling you keep available for use - or your habitual abode, broadly 183 days, in Germany. Nationality and visa are irrelevant to both. In practice this means keeping a flat available in Germany can preserve full German tax liability even when you spend most of the year in Dubai. Ending it requires genuinely giving up that access and moving the centre of your life, not merely counting days. A UAE Golden Visa is an immigration document; it has no bearing on this test. Reported on the Golden Visa point specifically - it follows directly from the statutory text, but we found no Finance Ministry page stating it in terms.
What You Do and Do Not Have to Report
Buying a flat or villa abroad in your own name is not itself a notification trigger under section 138 of the Fiscal Code, which is aimed at foreign businesses, permanent establishments and holdings in foreign companies. What you do is declare the rental income annually. Separately, the UAE participates in the Common Reporting Standard and exchanges financial account data with Germany, so your Dubai bank account is visible even though the deed itself is not a reportable asset.
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Check your eligibility →Frequently Asked Questions
Is there a double taxation agreement between Germany and the UAE?
No. Germany gave notice on 14 June 2021 that it would not renew the 2010 agreement, and it lapsed on 31 December 2021. No agreement has applied since 1 January 2022 and none has replaced it.
Do I pay German tax on Dubai rental income?
Yes, if you are tax resident in Germany. Worldwide income is taxable, and with no treaty in force there is no exemption and no rate-only treatment. The income is declared as Einkünfte aus Vermietung und Verpachtung and taxed at your marginal rate. The UAE charges no income tax, so there is no foreign tax to credit.
Do I pay German tax when I sell my Dubai property?
If you sell within ten years of buying, the gain is taxable in Germany as a speculative transaction under section 23 of the Income Tax Act. After ten years it is free of German tax. Genuine owner-occupation in the year of sale and the two preceding years is an exception.
Does German exit tax apply to a Dubai property?
No. Wegzugsbesteuerung under section 6 of the Foreign Tax Act is triggered by substantial shareholdings in corporations, broadly one per cent or more, not by directly held real estate.
Can Germany still tax me after I move to Dubai?
Potentially, for up to ten years. Section 2 of the Foreign Tax Act creates an extended limited tax liability for German nationals who were fully liable for at least five of the previous ten years, move to a low-tax country such as the UAE, and retain substantial economic interests in Germany. It reaches German-source income, with worldwide income used to set the rate.
Does a UAE Golden Visa end my German tax residency?
No. German tax residency turns on having a dwelling available to you in Germany or a habitual abode of around 183 days. A Golden Visa is an immigration status and has no effect on either test.
Sources
- Bundesministerium der Finanzen - annual status list of double taxation agreements as at 1 January 2026 (UAE carries no current-treaty status) - accessed 2026-08-23.
- Einkommensteuergesetz - sections 21 (rental income) and 23 (private disposals, ten-year period) - accessed 2026-08-23.
- Aussensteuergesetz - section 6 (Wegzugsbesteuerung, shareholdings) and section 2 (extended limited tax liability) - accessed 2026-08-23.
- Abgabenordnung - sections 8 and 9 (Wohnsitz, habitual abode) and section 138 (notification duties) - accessed 2026-08-23.
The termination of the 2010 agreement was reported contemporaneously by major tax practices in July 2021 and is consistent with the Finance Ministry's current status list. Confirm your own position with a Steuerberater before acting.