Take out a mortgage with income in Dirhams (AED)

Do you live in the United Arab Emirates (UAE) and would you like to apply for an owner-occupied home mortgage or rental mortgage in the Netherlands? Then at many banks you will encounter the fact that you do not have any income in euros, but are paid in foreign currency, namely Dirhams (AED).

However, taking out a mortgage with income from the Emirates, such as Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Qaywayn, Ras al-Khaimah and Fujairah, is one of the options in the Netherlands. We can guide and support you with financing for both the purchase of a second home (pied-à-terre) and your own home when you wish to return from Asia to the Netherlands.

Mortgage credit directive (MCD)

As of 2016, the Mortgage credit directive has been introduced in Europe. The promise of this directive was that there would be a European market and therefore more competition / freedom of choice for consumers. However, due to the introduction of this European directive, banks, insurers and other providers of mortgage loans are reluctant to provide mortgages to consumers with an income other than Euros. Dutch people abroad who enjoy their income from the Emirates in the local currency AED are affected by this, as there is limited choice and not every lender welcomes them.

Tightened customer due diligence in EU high-risk countries

The European Commission has amended the list of high-risk countries with effect from 16 March 2023. Five countries have been added, including the United Arab Emirates, which includes Dubai and Abu Dhabi. The Seven Emirates lie between Saudi Arabia and Oman borders. Country risk is one of the important risk factors in the Wwft client survey. Based on article 8 paragraph 1, b Wwft, a Wwft institution must always conduct stricter customer due diligence if the customer lives or is established in a country that has been designated as a high-risk country by the European Commission. In addition, specific investigative measures apply in the event of transactions with these countries on the basis of article 9 paragraph 1 Wwft. Officially, the new regulation will enter into force on March 16, 2023. The United Arab Emirates is new since January 2022.

European Commission: Commission Delegated Regulation (EU) 2023/410 of 19 December 2022 amending Delegated Regulation (EU) 2016/1675, Official Journal of the European Union 24 February 2023

Please pay attention
If you want to finance your first or subsequent investment property, we can help you take out a suitable buy-to-let mortgage. We guide both starting and experienced real estate investors.

Not a wide choice: very limited number of lenders

Under certain conditions, you can buy a house for primary residence, second home or investment property in the Netherlands with an income in Dirhams (AED). Such mortgage applications are always based on customization. Taking out a mortgage in the Netherlands with income from the Emirates is impossible with most lenders.

Conditions for an expat abroad

In addition to the predictable conditions that you must have a sustainable income, there are concrete conditions to be attached to a mortgage application:

  • At least one of the applicants must have a Dutch passport;
  • There is an income limit of at least € 60,000 for the main applicant;
  • The income must be fixed and must come from employment. We usually cannot finance entrepreneurs abroad;
  • The rental or mortgage costs in the country of residence must be demonstrated.

Do you live and work in the Emirates or the Netherlands?

It also makes a difference for the financing where you are going to live or where you currently live. For example, do you have plans to return to the Netherlands permanently or do you wish to keep a second home in the Netherlands? Depending on your wishes and personal situation, for example remigration to the Netherlands, we recommend a suitable mortgage and look for a suitable lender.

Financing of properties in the Netherlands with income in UAE Dirham

At Bliss, we only mediate mortgages for collateral throughout the Kingdom of the Netherlands (and therefore also on Curaçao). We can support you in financing your new home, investment properties or business premises. If you have a home or real estate portfolio, we can establish a mortgage on your home in the Netherlands or any investment properties for, for example, the purchase of a second home in Dubai or the other Emirates. Also in this situation it is possible to have income in the local currency. If you want to buy a house in Dubai, we cannot help you with local financing from an Emirates bank. We can refer you within our business network.

Second home transfer tax

If you want to purchase a second home (next to your home in Abu Dhabi or Dubai) in 2023, it is important to take into account a rate of 10.4% for the transfer tax. The rate for a first home, for example after returning from the Emirates, is 2% in most situations, unless you can use the so-called starter exemption.

Notary service

To actually be able to use the mortgage offer, a mortgage deed will have to be signed. Due to your busy life and travel schedule, it may be better not to have to fly to the Netherlands several times and it may not even be necessary, depending on availability, to sign a local power of attorney. In the start-up phase of the mortgage application, we can assist you in scheduling a notary appointment, so that you only have to sign a power of attorney once. The notary is located 20 minutes from Schiphol Airport, making it easy to combine. At Bliss we also guide you in this part of the process and we try to make our working method as efficient as possible.

Tell us your story

Do you have questions or would you like to receive more information about applying for a mortgage with income from Dubai in Dirhams?
Then contact us without obligation and we will schedule a call appointment or video call session using Teams, Zoom or Google Meet.

Schedule your free consultation now

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