Israeli Investor Guide to Dubai

Mistake #1 – Thinking it's like buying in Israel. In Dubai, there are two types of ownership: Freehold – full and permanent ownership. Preferable. Leasehold – lease for a period. Less recommended for a foreign investor. It's mandatory to know what you're buying before you sign. Mistake #2 – Trying to do it alone. The Off-Plan market in Dubai looks simple from the outside – but it has small details that cost dearly. Which developer is reliable, which project is still at an entry price, what exactly is written in the SPA contract, and where the trap is that most buyers fall into during the payment stage. Israelis who try to navigate this alone – without someone who knows the market from the inside – pay for it. Not in commission, but in mistakes that could have been completely avoided. Mistake #3 – Not opening a bank account in advance. Many Israelis discover during a deal that they don't have a local bank account. The process for opening takes time – it's best to do it separately, before. Mistake #4 – Ignoring the area. Dubai is not a uniform city. Downtown, Dubai Marina, JVC, Palm Jumeirah, Business Bay – each area has a different tenant profile, different yield, and different appreciation potential. Don't choose an area based on "looks good in a picture".

Step 1 – Project and Area Selection: Decide on budget, property type, and desired area. In Off-Plan projects, you can often enter at a launch price before the project opens to the general public. Step 2 – Reservation and Deposit: Sign a reservation form and pay a deposit (usually 10-20% to the developer). Step 3 – Signing the Contract with the Developer (SPA): The official purchase contract. It's important to go over it with a Dubai lawyer. Step 4 – Payments According to the Construction Schedule: One of the big advantages of Off-Plan: payments are spread over the construction period – you don't need to pay everything at once. Step 5 – Registration at DLD: The Dubai Land Department registers you as the owner. In Off-Plan projects, you receive a temporary certificate (Oqood) until construction is complete. Step 6 – Receiving the Key and Title Deed: Upon completion of construction, you receive the final title deed. The investment is complete.

Purchase Tax (DLD) — 4% of the property value. Oqood Registration Fee — approx. 2,100 AED. Brokerage Fee — 0% (paid by the developer only). Legal Fee — 0.5–1%. Annual Management Fee (Service Charge) — 10–20 AED per sqm. Please note: Unlike second-hand real estate, in Off-Plan projects the buyer does not pay a brokerage fee — this is a cost the developer takes upon themselves. A significant advantage that lowers the entry threshold for investment.

Israel taxes its residents on income from abroad. Yes, even if you earned in Dubai – you must report to the Israel Tax Authority. Rental income from abroad – taxable in Israel. There are two tracks (15% and regular track) – it's worth checking which is better for you. Profit from sale – taxable as capital gains tax in Israel (25% plus surtax if applicable). Tax Treaty – As of today, there is no tax treaty between Israel and the Emirates. That is, there is no automatic credit. The conclusion: Proper tax planning before the purchase is worth tens of thousands of shekels to you.

1. Who is the developer? What is their record? Have they finished projects on time in the past? 2. What is the payment schedule? And what happens if the developer is delayed? 3. What is the expected annual Service Charge? 4. What is the rental potential in the area? What is the average Occupancy Rate? 5. What is my exit plan? Sale before handover? Renting? Long-term appreciation?

Dubai is a real opportunity. One of the best accessible to Israelis today. But like any investment – success depends on knowledge, planning, and the right people by your side. If you've read this far, you're already one step ahead of most investors. The next step is simple: Schedule a free 30-minute consultation. We'll examine your goals and budget together and define which projects suit you now. This guide was written to give you a foundation. Personal counseling is where the real money happens. We'd love to talk. © WE DUBAI | we-dubai.co.il | The information in this guide is general and does not constitute investment, legal, or tax advice.