Renting out property in Kuwait while living in Germany

Kuwait's rules for a landlord living in Germany: ownership, the rent agreement, who withholds tax, and how the rent reaches you.

General information, not legal or tax advice. Rules change and your situation may differ. Check the sources on this page and confirm with a lawyer or accountant in the country before you act.
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The short answers

Can I own property in Kuwait?
A citizen of Kuwait living abroad: Yes. A Kuwaiti living abroad buys like any citizen.
A foreign national: No. A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide.
Does the rent agreement need registering?
No registration threshold. Notarisation is a choice the parties make at signing.
Who withholds tax on the rent, and how much?
No withholding at source. No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
How does the rent reach me in Germany?
Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.
No limit; report a transfer of EUR 50,000 or more to the Bundesbank and show the foreign tax in the return.

Renting out property in Kuwait

What applies because the property is in Kuwait, whoever owns it.

Who may own residential property

Who may own residential property, by audience
Citizens living in the country Allowed

Anywhere.

Residents of any nationality Not allowed

Residency gives no right to buy. The one exception under Decree-Law 74 of 1979 is a national of another Arab country, resident for ten years with a clean record, who may be granted one home of up to 1,000 square metres for the family's own use by a specific decree; it is rarely used.

Citizens living abroad Allowed

A Kuwaiti living abroad buys like any citizen.

Foreign nationals living abroad Not allowed

A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide.

More on ownership

Barred outright
Every non-GCC individual, with the narrow Arab-resident exception above.
Inheritance and gifts
A non-Kuwaiti who inherits Kuwaiti property must sell within two years unless entitled to own; since 2025 an Arab national inheriting from a Kuwaiti mother is exempt from the forced sale. No inheritance tax.
Owning through a company
Only a company listed on Boursa Kuwait, a licensed real estate fund or a regulated portfolio may hold property with foreign owners, under Decree-Law 7 of 2025. Outside this guide.

Letting it out from abroad

May a non-resident owner let it
Yes, for the Kuwaitis and GCC nationals who can own; residency is not required to let.
Licences, permits, landlord registration
None for a long-term let.
Local agent or representative
In practice yes. Notarisation, rent certificates on the Sahel app and the rental court all assume a civil ID holder on the ground.

The rent agreement

Written agreement required
Yes. Decree-Law 35 of 1978, as amended by Decree-Law 95 of 2024, requires a written lease signed by both parties stating the rent and its due date.
Mandatory standard form
None mandatory. Ministry of Justice notarisation adds an executive formula that lets a landlord enforce unpaid rent without a full trial.
Language
Arabic governs; bilingual leases are common.
Registry
None for an ordinary tenancy. Notarisation at the Ministry of Justice is optional and worth having.
When registration is required
No registration threshold. Notarisation is a choice the parties make at signing.
Who registers
Either party can request notarisation; both sign before the notary, in person or through an attorney with a notarised Power of Attorney.
Registration cost
A small Ministry of Justice fee for notarisation.
If it is not registered
None for an unnotarised lease; it is still valid, but unpaid rent then needs a judgment from the rental judge rather than direct enforcement.
Stamp duty
None.
Notarisation and witnesses
Optional notarisation at the Ministry of Justice, which since 2024 makes the lease directly enforceable for arrears once the tenant has been notified and a non-payment certificate is issued.
E-signature
Recognised under the Electronic Transactions Law No. 20 of 2014; the Kuwait Mobile ID app signs for citizens and residents. Notarisation itself is still done at the Ministry.
The usual term
One year, renewed. Rent certificates and key-deposit certificates are issued through the Sahel app.

Rules the agreement must respect

Deposit
No statutory cap. One month's rent is usual; the Sahel app issues a deposit certificate that both sides can rely on.
Rent increases
Not for five years from the contract date or the last increase, and then only by agreement or by the rental judge where the rent is well below the market.
Notice periods
Set by the law according to the term and the rent period, from fifteen days to two months; a landlord may end a lease only on the statutory grounds.
Disputes
A single rental judge at the Court of First Instance, under the 2024 amendment, with the notarised lease enforceable directly for arrears.
Mandatory disclosures
Not applicable

Tax when the landlord lives abroad

Is the rent taxed here
No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
Withholding at source
No
Withholding rate
Not applicable
Who withholds
Not applicable
What the tenant must register
Not applicable
How to reduce it
Not applicable
Filing and tax ID
None for an individual.
VAT or GST on rent
None. Kuwait has not introduced VAT.
Municipal and housing fees
No annual property tax. Transfers carry a registration fee at the Real Estate Registration Department.

Money inside the country

How tenants pay
Bank transfer, KNET or cheque in dinars.
Currency of rent
KWD
Bank account for a non-resident owner
Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
Paying rent to an overseas account
Allowed. Nothing requires a local account, though cheques and the Sahel certificates assume one.
Taking rent out of the country
No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.

Living in Germany

What Germany asks of its residents who own and let property abroad.

Owning property abroad from here

Buying abroad
No restriction. A German resident may buy anywhere the other country allows and move money out freely, reporting transfers of EUR 50,000 or more to the Bundesbank.
Reporting foreign assets and accounts
None for property. The AWV statistical report covers the transfers; foreign accounts are not registered.
Tax at home on foreign rent
Germany taxes residents on worldwide income. Under most treaties, India's among them, rent from foreign property is exempt in Germany but raises the rate on other income through the progression clause; a few treaties and non-treaty countries use the credit method instead. Rent from EU property is exempt without the progression clause.
Bringing rent home
No limit; report a transfer of EUR 50,000 or more to the Bundesbank and show the foreign tax in the return.
Digital identity for e-signing
The eID function of the German identity card signs within the EU. Abroad, a foreign platform's own e-signature or a paper signature does the job.

Sources

  1. Ministry of Justice of Kuwait (lease notarisation and the rental court) — www.moj.gov.kw
  2. Central Bank of Kuwait: the CBK law and foreign exchange supervision — www.cbk.gov.kw
  3. US Department of State: Kuwait investment climate statement (real estate ownership and remittance rules) — www.state.gov
  4. Prime Minister of India: the protocol amending the India–Kuwait tax treaty — www.pmindia.gov.in
  5. German Civil Code (BGB) § 550: written form for a lease over one year — www.gesetze-im-internet.de
  6. BGB § 551: the deposit cap of three months' rent — www.gesetze-im-internet.de
  7. BGB § 556d: the rent brake in designated tight markets — www.gesetze-im-internet.de
  8. BGB § 558: rent increases to the local comparative rent and the cap — www.gesetze-im-internet.de
  9. BGB § 573c: notice periods — www.gesetze-im-internet.de
  10. Income Tax Act (EStG) § 49: German-source income of non-residents — www.gesetze-im-internet.de
  11. EStG § 50: how non-residents are assessed — www.gesetze-im-internet.de
  12. Foreign Trade Regulation (AWV) § 67: reporting cross-border payments to the Bundesbank — www.gesetze-im-internet.de
  13. Deutsche Bundesbank: external sector reporting — www.bundesbank.de
  14. Federal Ministry of Finance: double taxation agreements — www.bundesfinanzministerium.de