Real estate for cryptocurrencies in Dubai - is it possible?

Want to buy property with cryptocurrencies in Dubai? Check out our offer on Two Continents and ask about cryptocurrency payments!
 

Table of Contents:
 

• Regulation of cryptocurrencies in the UAE
   
  • No income tax and VAT exemption
     
  • The government's approach to cryptocurrency transactions
     
• Can you pay with cryptocurrencies for real estate in Dubai?
   
• How to buy property with cryptocurrencies in Dubai?
   
• Questions and answers (FAQ)
   
  • 1. is it possible to buy real estate in Dubai with cryptocurrencies?
     
  • 2. What are the advantages and disadvantages of buying real estate with cryptocurrencies?
     
  • 3. What cryptocurrencies are accepted for the purchase of real estate in Dubai?
     
  • 4. are there any regulations for buying real estate with cryptocurrencies in Dubai?
     

Regulations for cryptocurrencies in the UAE
 

The UAE has very clear and transparent regulations for cryptocurrencies. With the establishment of a body called the Virtual Assets Regulatory Authority (VARA), regulations have been introduced that speak to the requirements and obligations of investors and companies that offer services related to digital assets.
 

The regulations are aimed at:
 

• protecting investors
   
• anti-money laundering
   
• prevention of terrorist financing
   

No income tax and VAT exemption
 

It is also worth mentioning that there is no income tax for individuals in the UAE. This provision is also applied to profits from cryptocurrency transactions. With November 15, 2024, it was also announced that all exchanges and transactions of digital currencies, which were made since January 1, 2018,are exempt from VAT.
 

Government's approach to cryptocurrency transactions
 

The Dubai Land Department, as the body responsible for regulating Dubai's real estate industry, among other things, was the first in the world to start using blockchain technology for real estate transactions. Work on the wider use of crypto solutions is not diminishing, and the government wants to use advanced smart-currencies to help automate many processes in the real estate industry, for example, or in legal matters.
 

Of course, the technology is used more as a secure, unforgeable and unalterable ledger than a transaction platform, but the implementation of the technology behind the success of cryptocurrencies is undoubtedly a big step forward in terms of the development of the digital currency market in Dubai.
 

Can you pay with cryptocurrencies for real estate in Dubai?

Yes, cryptocurrencies in Dubai are recognized as legal tender that can be used to pay salaries based on an employment contract. Buying real estate with cryptocurrencies is also officially recognized as legal by the UAE government, but the ability to make such a transaction depends on the willingness of the selling party. However, more and more companies and developers are opting for this type of solution to attract investors of digital assets.
 

It is worth adding that cryptocurrency transactions in real estate often involve an additional small commission, as the selling company ultimately exchanges cryptocurrencies for fiat currency, so it needs an intermediary with sufficient liquidity to carry out such a transaction. It is also worth knowing whether there is a tax on cryptocurrencies in Dubai?
 

How to buy property with cryptocurrencies in Dubai?

The process of buying a property with cryptocurrencies is the same as for a standard payment. However, it is necessary to first inquire whether a property can be bought by paying with digital currency, and then draw up a corresponding purchase and sale agreement. It is also important to determine which cryptocurrency we will use. Popular cryptocurrencies that are easily exchanged on many exchanges and exchange points are Bitcoin (BTC) and Ethereum (ETH).
 

However, the best idea and hedge against price fluctuations is to pay for the purchase of a property in a so-called stablecoin, a cryptocurrency that holds a value of 1:1 to the fiat currency. The most popular are USDT and UDSC, which replicate the price of the US dollar. A digital Dirham (AE Coin) was also recently approved, which will hold a 1:1 ratio to the price of the Dirham (AED). Arguably, the government will work to introduce it into more and more transactions, including in the real estate market.
 

Questions and answers (FAQ)
 

1. Is it possible to buy real estate in Dubai with cryptocurrencies?

Yes, it is possible to buy property in Dubai with cryptocurrencies. Cryptocurrency payments are widely accepted and considered legal by the government. However, to make such a payment, the selling party must agree to make the payment with digital currency.
 

2. What are the advantages and disadvantages of buying property with cryptocurrencies?

For a person who owns cryptocurrencies, the biggest advantage is that there is no need to make an exchange from digital currency, to fiat currency. A person receiving payment in cryptocurrencies can enjoy immediate receipt of the transfer, regardless of the country of location of the person paying and the person receiving the payment. Cryptocurrency payments can also be made without intermediaries, offsetting the commissions that a bank, for example, charges for large amounts. Another advantage is that the transfer can be made 24/7 and received in minutes.
 

3. What cryptocurrencies are accepted when buying property in Dubai?

Parties selling and buying a property can themselves determine in which cryptocurrency they want to make payment for the purchase of a property. However, the most popular will be Bitcoin (BTC), Ethereum (ETH) and stablecoins like USDT, or USDC.
 

4. Are there any regulations for buying real estate with cryptocurrencies in Dubai?

Yes, the main regulations regarding the purchase of real estate in Dubai are those protecting investors, anti-money laundering and terrorist financing. These are the regulations known broadly as Know Your Customer (KYC) and Anti-Money Laundering (AML).