Market Comparison
A factual side-by-side comparison to help you understand the key differences between the Spanish and Dubai property markets.
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Transfer tax | ITP: 6-10% depending on region (as of Q2 2026) | DLD fee: 4% (as of Q2 2026) |
| New build tax | IVA 10% + AJD 0.5-1.5% (as of Q2 2026) | Oqood 4% (as of Q2 2026) |
| Agency fee | Typically paid by seller | 2% paid by buyer (as of Q2 2026) |
| Total buying costs | 10-14% of purchase price (as of Q2 2026) | 7-8% of purchase price (as of Q2 2026) |
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Max LTV (non-resident) | 70% (as of Q2 2026) | 65% (as of Q2 2026) |
| Interest rate | Euribor + 1.5-2.5% (as of Q2 2026) | EIBOR + 1.5-3% (as of Q2 2026) |
| Max term | 20-25 years | 25 years |
| Stress test | +2% buffer (as of Q2 2026) | +2% buffer (as of Q2 2026) |
| DBR cap | ~33% (bank-specific) | 50% (as of Q2 2026) |
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Property tax | IBI: 0.4-1.1% of valor catastral (as of Q2 2026) | No annual property tax |
| Income tax on rental | IRNR: 19% for EU residents (as of Q2 2026) | 0% income tax |
| Capital gains tax | 19% (as of Q2 2026) | 0% |
| Wealth tax | 0.2-3.5% (varies by region) (as of Q2 2026) | No wealth tax |
| Community/service fees | EUR 50-300/month | AED 10-30/sqft/year (as of Q2 2026) |
| Municipality fee | Basura: EUR 50-200/year | 5% of annual rent (as of Q2 2026) |
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Golden Visa | EUR 500,000 minimum (program under review as of Q2 2026) | AED 2,000,000 for 10-year visa (as of Q2 2026) |
| Investor visa | Included in Golden Visa | AED 750,000 for 2-year visa (as of Q2 2026) |
| EU residency benefit | Yes - Schengen access | No EU residency benefit |
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Flight time from Amsterdam | 2.5-3 hours | 6-7 hours |
| Time zone difference | +0/+1 hour | +2/+3 hours |
| Language | Spanish (English limited outside tourist areas) | English widely spoken |
| Climate | Mediterranean (mild winters, hot summers) | Desert (very hot summers, mild winters) |
| Currency | EUR (no exchange risk for Dutch buyers) | AED (pegged to USD, EUR/USD exposure) |
| Legal system | Civil law (EU framework) | Civil law (UAE framework, DIFC for commercial) |
| 🇪🇸Spain | 🇦🇪Dubai | |
|---|---|---|
| Box 3 reporting | Yes - market value minus mortgage (as of fiscal year 2026) | Yes - market value minus mortgage (as of fiscal year 2026) |
| Double taxation treaty | Yes - proportional exemption available | Treaty exists but limited benefit (UAE has no property tax) |
| Mortgage interest deduction | No (Box 3, not Box 1) | No (Box 3, not Box 1) |
This comparison is for informational purposes only and does not constitute a recommendation for either market. All figures are as of Q2 2026.
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