Residence in Dubai: €595,000 for a let flat in Munich, a Europe mortgage from the UAE
“We earn very well — but for German banks that suddenly seems to count for nothing.” Mr M. said this sentence right at the start of the advisory meeting. A non-resident mortgage works differently here: the bank looks at income, equity and where you live — residence decides which banks take the case.
Residence in Dubai: what was the obstacle, how was it solved and who structured the loan for the let flat in Munich?
The obstacle was the residence outside Europe, not creditworthiness or equity; two enquiries failed. We chose a bank whose guidelines expressly allow international cases and prepared contracts, income statements, assets, equity and the asset strategy in advance. Perini Finance & Property, licensed under §34i GewO, structured the €595,000 loan; the commitment came a few weeks later.
Who were the buyers?
For six years he had lived with his family in Dubai. He worked as a senior project manager at an international technology group, and his wife was employed as a human-resources manager at a globally active company.
Together they earned an income far above average.
Even so, two financing enquiries had already failed.
Not because of their creditworthiness.
Not because of a lack of equity.
But because of their residence outside Europe.
Although the family felt at home in Dubai, it was clear to them that Germany should remain an important part of their asset planning long-term.
The plan was to buy a high-quality flat in Munich.
The flat was to be let at first and possibly used by themselves later.
The key figures:
- Purchase price: 785,000 euros
- Equity: 255,000 euros
- Financing required: 595,000 euros
The financing was solidly calculated.
Even so, the first meetings with banks were sobering.
Why does Dubai make many banks cautious?
Because they review more than usual: tax residence, residence status, the employment contract, duration of the assignment, asset structure, return plans and anti-money-laundering requirements.
Among other things, many banks review:
- tax residence
- residence status
- employment contract
- duration of the overseas assignment
- asset structure
- return perspective
- anti-money-laundering and compliance requirements
Some institutions therefore forgo financings for clients outside Europe entirely.
Others, by contrast, have clear processes and many years of experience.
The analysis: Even at the first review it became clear that the economic conditions were excellent.
Both employments had existed for several years.
The income was regular and secured long-term.
In addition, the family had considerable reserves as well as further investments.
The planned property was in a very good Munich residential location with stable demand.
So the real challenge did not lie in creditworthiness.
It consisted solely of finding a bank whose lending guidelines expressly allow international matters.
How was the case prepared?
All documents were prepared carefully in advance: employment contracts, income statements, an asset overview, bank statements, proof of equity and the property documents.
International financings often require considerably more comprehensive documentation.
All the documents were therefore prepared carefully.
Among them:
- employment contracts
- income statements
- an asset overview
- bank statements
- proof of equity
- property documents
- an explanation of the personal asset strategy
This allowed the bank's follow-up questions to be answered before the actual credit review.
The financing: After selecting a suitable financing partner, processing was much more structured.
The bank was familiar with comparable cases and could assess the documents without fundamental follow-up questions.
The financing commitment was in place just a few weeks later.
The purchase of the Munich flat could take place as planned.
The property was let successfully immediately after handover.
Why is this case typical?
Because German specialists in Dubai often have excellent incomes but still meet several rejections, as international financings lie outside many banks’ standard processes.
Nevertheless, many initially experience several rejections.
Not because their economic situation is problematic.
But because international financings lie outside some banks' standard processes.
Anyone who selects the right financing partners avoids unnecessary rejections and often saves several months of processing time.
What other Germans in Dubai can learn from this: A residence in the United Arab Emirates by no means rules out a property financing in Germany.
What is decisive is complete documentation of the income and asset situation as well as the selection of banks that regularly handle international financings.
For long-term asset strategies in particular, Germany remains an attractive property location for many Germans abroad.
Does a residence outside Europe rule out German financing?
No: anyone who documents international income professionally and selects banks with the relevant experience can invest in German property from Dubai too.
Anyone who documents international income situations professionally and specifically selects banks with the relevant experience can successfully invest in German property from Dubai too.
It is not the place of residence that decides the financing.
What is decisive is creditworthiness, asset structure and the choice of the right financing partner.
Why did two enquiries for a Europe mortgage fail? Because of the residence outside Europe, not creditworthiness or equity. For clients in the United Arab Emirates, banks review tax residence, residence status, employment contract, asset structure and compliance requirements, and some institutions forgo such a mortgage entirely. The solution was a bank whose lending guidelines expressly allow international cases.
Frequently asked questions
Can Germans living in Dubai finance property in Germany?
Yes. Numerous banks handle such financings, although the requirements differ considerably.
Is the tax-free income in Dubai a problem?
Not fundamentally. What is decisive is that income and assets can be documented in a comprehensible way.
Is more equity required?
Depending on the bank, the requirements may be higher than for financings within Germany.
Does a return to Germany have to be planned?
No. Financing is often possible even without a concrete intention to return.
Does processing take longer?
International financings often need a little more preparation time. With complete documents, however, delays can be reduced considerably.
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.
