€760,000 mortgage for a house south of Munich after two banks rejected tax-free Dubai income
“We were told our income was the problem. Yet we earn more than enough.” When the family got in touch, two rejections were already on the table. A non-resident mortgage works differently here: the bank looks at income, equity and where you live — residence decides which banks take the case.
How was tax-free income from Dubai accepted for the house south of Munich?
Two banks rejected the case because the Dubai income was tax-free and the origin of the equity was not visible, not because of creditworthiness. We documented salary development, contracts, bonuses, bank statements, savings and asset transfers in full and approached a lender that regularly handles international returnees. The commitment came a few days after the pre-check.
Why did the first banks reject the case?
Not because of creditworthiness, equity or the property, but because the family’s income from Dubai was tax-free.
Not because of a lack of equity.
And not because of the property either.
The real reason was a different one.
The family's income was tax-free.
The father had worked for eight years as regional director of an international logistics company in Dubai. His wife headed the finance department of a large hotel group. Together they had an exceptionally high income and had built up a seven-figure sum of assets over the past years.
Once the children started school, it was settled:
The family wanted to return to Germany for good.
After several visits to Germany, the family decided on a free-standing detached house south of Munich.
Not as an investment.
Not as a holiday home.
But as a future home.
The key figures:
- Purchase price: 1,120,000 euros
- Equity: 430,000 euros
- Financing required: 760,000 euros
The monthly burden was easily affordable.
Even so, neither of the first two banks wanted to finance it.
What did the banks want to know?
How lasting the income in Dubai was, whether the employment continued after the move, and where the equity came from.
Many people believe a high income alone automatically secures a financing commitment.
International financings, however, work differently.
Among other things, the banks wanted to know:
How lasting is the income in Dubai? Does the employment continue after the move? Where does the equity come from? How were larger assets built up? When does the return to Germany take place?
The origin of the equity in particular played a much bigger role than the family had expected.
Why was the documentation decisive?
Because Dubai has different tax and legal frameworks, so payslips alone are often not enough: salary development, employment contracts, bonuses, bank statements and asset transfers were documented in full.
As a result, classic payslips are often not enough.
Together, all assets were documented in a comprehensible way.
Among them:
- salary development over the past years
- employment contracts
- bonus payments
- bank statements
- proof of savings
- evidence of asset transfers
- equity development
Only through this did a complete picture emerge.
What was the turning point?
A lender that regularly works with international returnees received all relevant information with the very first enquiry, so many follow-up questions fell away.
The bank received all relevant information with the very first enquiry.
As a result, many follow-up questions were eliminated entirely.
Just a few days after the preliminary review was completed, the financing approval was in place.
What does this case show?
That tax-free income from Dubai is no longer an exception, but the requirements of the banks vary considerably.
Nevertheless, the requirements of the banks vary considerably.
Whilst some institutions are only able to assess international income structures to a limited extent, others have many years’ experience with returnees from the United Arab Emirates.
It is not income that matters.
It is the quality of the preparation that matters.
This case study shows that a high income alone does not guarantee a financing commitment.
Returnees from abroad, in particular, benefit when their financial situation is presented in a comprehensive and transparent manner.
Anyone who takes a professional approach to planning their income, assets and repatriation arrangements creates the best possible conditions for successfully buying a home in Germany.
Income from Luxembourg: Home ownership in Germany: Anonymised case study: Why even bank employees can struggle to secure financing for their own homes. Brokered under Section 34i GewO.
How did it end?
Four weeks later the family signed the purchase contract.
Today the two children live just a few minutes from their school.
The father still works for his previous employer — now mostly from Germany.
His wife moved to a German company a few months later.
Frequently asked questions
Can families living in Dubai finance a home in Germany?
Yes. Numerous banks handle such financings.
Is tax-free income a disadvantage?
Not fundamentally. What matters is comprehensible documentation of the income and asset development.
Why is the origin of the equity queried?
Banks are obliged to document larger assets in a comprehensible way.
Does the move already have to have happened?
No. Many financings are implemented before the return to Germany.
Can owner-occupied detached houses be financed?
Yes. Returnees in particular often first acquire an owner-occupied home.
A similar situation? Let’s talk.
Every case with an overseas link is its own. In a free initial call we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission, as a rule, paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.
