Can I Buy Property in Dubai with Cryptocurrency?

When it comes to buying properties, most people consider conventional methods such as cash or a mortgage. But, there is an alternate rising method that is slowly gaining favour in Dubai. 

The popularity of virtual currencies has escalated tremendously in the past couple of years, with immense applications in a wide range of sectors across the globe. Among them, one of the widespread usages of cryptocurrency is in dealing with real estate. And when it comes to real estate, Dubai is by far among the most sought-after cities globally.

Needless to say, there is a lot of curiosity as to whether one can buy properties in Dubai with crypto, and if so, what is the process to be followed? Is it applicable only for ready-to-move properties or off-plan properties as well? Are there any benefits of buying properties with crypto? 

We are here to answer all those queries and more as we take a deep dive into the relevance of buying property in Dubai with crypto.

Understanding Cryptocurrency and Blockchain Regulation in Dubai

Before we dive into the details, let us get some basics correct. Cryptocurrency refers to digitised money that uses cryptographic technology. It works on a blockchain technology that serves as a decentralised database that is immune to hacking or tampering.

Dubai’s Virtual Assets Regulatory Authority (VARA) has been entrusted with the task of securing an operational framework for the virtual asset sector in the city. It assures the protection of investors and the real estate market of Dubai as a whole. Its existence speaks to the confidence of the Government of Dubai in regarding virtual assets as pivotal pillars of the future digital economy.

The blockchain strategy initiatives implemented by the government aim to make Dubai a technologically advanced city. They will help in conducting business without the need for bureaucracy. Both crypto and blockchain systems have been actively implemented in the economics of the city. 

So, the answer is yes, you can buy a property in Dubai using cryptocurrency. Both ready-to-move properties and off-plan properties can be purchased in Dubai with cryptocurrency. 

Benefits of Buying Property with Crypto in Dubai

Buying properties with cryptocurrencies in Dubai brings a diverse range of advantages, which proves why it is gaining significant popularity with each passing day. And if the real estate investment is more than AED 2 million, you become eligible for the UAE Golden Visa as well. 

Let us take a look at some of the most prominent benefits of buying a property in Dubai with cryptocurrency.

Faster Transactions

When you buy properties with cryptocurrency in Dubai, the transaction process rapidly speeds up for both buyers and sellers. Furthermore, the transfer of ownership of the property is also a quicker process when dealing with crypto.

Mitigates Fraudulent Activities

Trusted virtual currencies such as Bitcoin help facilitate safe and secure financial transactions. In today’s times, it is extremely easy to buy real estate with Bitcoin. As these currencies go through several stages of scrutiny, you are less likely to face any fraudulent activity, thereby mitigating any risks involved. You don’t have to deal with identity theft and get transparency about the whereabouts of your transactional process.

Guarantees Buyer-Seller Autonomy

Since you are not making any payments to any financial institutions or banks in crypto, you can maintain anonymity while buying a property in Dubai. This means that you don’t have to share sensitive information with third parties and can buy property directly from the property developers in Dubai.

Eliminates Large Fees

When you purchase a property through a mortgage, you have to deal with many additional charges and taxes. But with crypto, you can significantly reduce the payment of unnecessary fees. As such, you face fewer financial burdens, which are generally associated with traditional forms of payment.

How to Buy a Property in Dubai with Crypto?

The process of purchasing a property with cryptocurrency in Dubai is extremely simple and hassle-free. Still, we recommend getting in touch with an investment strategist before buying, selling, or renting a property in Dubai using cryptocurrency, especially if it is your first time.

Here is a simple breakdown of the entire process of buying a property in Dubai using crypto.

• You need to have a crypto wallet and register yourself.
• Next, you need to select a reliable property developer that deals with crypto.
• Finalise your choice of the property you want to purchase.
• Discuss the price of the property and go through the terms and conditions of the sale thoroughly.
• Send the crypto amount to the digital wallet of the property developer you have chosen.
• You will then get a cheque in AED form, which will allow the required amount to be transferred to the property developer’s escrow account.

Documents Needed to Buy a Property in Dubai with Crypto

In recent years, technological advancements have led to a rising popularity in buying real estate in the UAE with cryptocurrency. However, regardless of your mode of purchase, you always have to provide crucial documents while buying a property, and crypto is no exception. Here is the list of documents required to buy a property in Dubai with crypto.

• Identity Document (ID)
• Passport details
• Contact details
• Proof of a residential address
• A power of attorney, in the event your representative conducts the transaction

Things to Consider While Buying a Property in Dubai with Crypto

While purchasing property with crypto in Dubai is safe and reliable, there are still a couple of considerations you need to keep in mind to heighten the security of your purchase. So, before you buy real estate with crypto, keep the following aspects in mind.

Comply with the UAE Laws

It is of paramount importance that you comply with the UAE laws during the entire process of buying a property with crypto in Dubai. Several crypto trading companies function under the jurisdiction of Dubai. So, make sure you are always on the right side of the law to get water-tight security for your investment.

Beware of Market Fluctuations

Cryptocurrencies such as Bitcoin experience severe market fluctuations, which means you need to research the market well and find a suitable time for investment that will generate the most capital gain for you. We can’t stress enough the importance of investing with caution.

Seek out Reviews

Go through reviews and testimonials from previous clients who have used the services of the property developer you have chosen to buy a property from using crypto. Only trusted sources that have experience in dealing with crypto should be selected. Also, pay attention to any third-party operator who is involved with clearing the deal.

To Conclude

You can buy a property in Dubai using crypto. In fact, it is one of the most reliable and safest buying methods. With the advancement of technology and opportunities for virtual currencies in Dubai, the sky is the limit. Following the aforementioned process and abiding by the legalities will ensure that not only your transaction is safe, but your investment is also a profitable one.

FAQs 

Commonly Asked Questions about Buying Properties in Dubai with Crypto 

Can I buy property in Dubai with crypto? 

Yes, you can buy properties in Dubai using cryptocurrency since the Dubai Land Department (DLD) recognises crypto-to-real estate purchases and has established formal regulatory frameworks to support crypto transactions. 

Can you buy a house with Bitcoin in Dubai?

Yes, you can buy a house with Bitcoin in Dubai since the city has a supportive regulatory framework for allowing property purchases through cryptocurrency. 

Is it safe to buy property in Dubai with crypto? 

Yes, it is generally considered safe to buy property in Dubai with crypto due to the regulations from the DLD and the VARA. Dubai has clear formal rules and a collaborative public-private environment for facilitating crypto-related transactions, thereby making the process secure and efficient. 

Is crypto tax-free in Dubai?

There are no taxes on income or capital gains for individuals in Dubai, including crypto gains. This means that if you invest or trade in crypto personally, all your profits are 100% tax-free. However, companies that are involved in crypto activities are subject to the standard 9% corporate tax on profits that exceed AED 375,000. 

What is the most accepted crypto in Dubai?

While Bitcoin and Ethereum are most widely accepted throughout Dubai, especially for huge investments such as real estate, stablecoins like Tether (USDT) and USD Coin (USDC) are also gaining in popularity due to their stability and are increasingly accepted. But please note that acceptance may vary from sector to sector. Therefore, before making a crypto transaction, we recommend you confirm with the concerned merchant or service provider as to whether they accept that specific crypto or not.