Transferring money to Dubai: how I did it from Israel, what the bank asked for, and where it got stuck

Which route to use

When I bought at Damac Riverside, I tried several routes. I tried a digital transfer platform, and I tried a credit card payment link the developer sent, but it failed, and American Express was not accepted at all. I also looked at Western Union. In the end, what worked for large amounts was a bank transfer through my bank branch in Israel.

What the bank asked for

These are the documents my bank asked for:

• Approval from the Israel Tax Authority on form 2513 (see the next section).
• A proforma invoice from the developer.
• The unit reservation form, or the sales offer.
• The developer's trade licence, and details of its shareholders and company structure.
• An explanation of the source of the money.

In my experience, a small branch sticks closely to the guidelines and asks for more documents, and a large transaction raises more questions. Talk to your bank early and ask what it needs.

Tax Authority approval: form 2513

Form 2513 is the Israel Tax Authority's "declaration of payment to a foreign resident and request to reduce withholding tax". According to the Tax Authority, it is submitted to the assessing officer online, by post or by fax, together with confirmation of what the payment is for. There is no fee.

From my experience:

• The approval was given for a set amount, and I had to renew it every year.
• The Tax Authority did not answer three enquiries, and in the end I went to the office in person.
• One clerk asked me for a form that was not relevant to the deal. It helps to know in advance exactly what is needed.

How long it took

This is how it went for me, in summer 2024:

1. 22 July: I started the unit reservation.
2. 19 August: I received the Tax Authority approval.
3. 20 August: the bank stopped the transfer (see "Where it got stuck").
4. 17 September: the main transfer went out.
5. 19 September: the developer confirmed receipt.

In total, about two months from the reservation until the money was received.

Where the money goes, and what to write on the transfer

In my case, the payments went in stages: first 5% for the reservation, then 20% plus the 4% Dubai Land Department (DLD) registration fee, and from there according to the payment plan.

Two things I did with every transfer, so the payment would be assigned to the right unit:

• I wrote the unit number in the transfer description line.
• I kept the SWIFT confirmation, the bank's record of the transfer, and sent it to the developer.

In an off-plan project in Dubai, payments should go into the project's escrow account. Before every transfer, check that the bank and account number match what appears in the official app (see "How to check a project").

Where it got stuck

• A missing address. The transfer was stopped because the beneficiary's full address was missing. Dubai does not use postal codes, so ask the developer in advance for its full address exactly as it should appear on the transfer.
• Documents about the developer. The bank asked for documents about the developer, and they took time to obtain.
• The Tax Authority. No answer to enquiries, and a request for an irrelevant form.
• Contacting the developer directly. In the middle of the deal I contacted the developer through its website, and the deal was registered on their side as a lead of a different salesperson. That led to a cancellation and a new negotiation, and in the end the money came back. Contacting the developer directly mid-deal can cost you the unit.

My conclusion: the bureaucracy in Israel was harder than in Dubai.

Mistakes to avoid

• Not preparing the Tax Authority approval in advance.
• Not writing the unit number on the transfer.
• Contacting the developer directly in the middle of a deal.
• Forgetting to renew the Tax Authority approval every year.