Dubai has no annual property tax, no capital gains tax and no tax on rental income — but buying a home here is not cost-free. Between Dubai Land Department (DLD) fees, trustee charges, agent commission and mortgage costs, the true cost of buying property in Dubai typically adds 6–8% on top of the purchase price for a ready home bought with a mortgage, and roughly 5% for a cash off-plan purchase. This guide breaks down every fee you will actually pay in 2026 — including the ones buyers most often forget to budget for.
The quick answer: what to budget on top of the price
For a ready property bought with a mortgage, plan for roughly 7–8% of the purchase price in transaction costs. For a cash purchase of a ready home, around 6–7%. For an off-plan purchase directly from a developer, around 4–5%, because there is usually no agent commission and registration runs through the Oqood system. On a AED 2,000,000 apartment bought with a mortgage, that means setting aside roughly AED 140,000–160,000 beyond your down payment.
DLD transfer fee — the biggest single cost (4%)
The Dubai Land Department charges a 4% transfer fee on the property’s sale price for every transfer of ownership. Although the law technically allows the fee to be split between buyer and seller, in practice the buyer pays the full 4% in almost every Dubai transaction. On a AED 2,000,000 property that is AED 80,000, payable at the trustee office on transfer day.
Alongside the 4%, the DLD collects a small admin fee: AED 580 for apartments and villas, AED 430 for land, and AED 40 for off-plan registrations under the interim register.
Off-plan: the Oqood registration
Buying off-plan rather than ready? The same 4% applies, but it is paid at the point of sale through Oqood, DLD’s interim property registration system for units under construction. Some developers absorb part or all of the DLD fee during promotions — one of the genuine negotiation levers in a off-plan purchase, so always ask.
Registration trustee fee
Ready-property transfers are executed at an approved registration trustee office, which charges AED 4,000 + 5% VAT for properties priced at AED 500,000 or above (AED 2,000 + VAT below that threshold). This is a fixed fee regardless of whether the home costs AED 600,000 or AED 60 million.
Agent commission (2% + VAT)
The standard brokerage commission for a secondary-market purchase in Dubai is 2% of the purchase price + 5% VAT. Always confirm your broker is RERA-registered and the commission is documented in the Form B agreement. For off-plan purchases direct from a developer, the developer pays the broker — buyers do not pay commission on new launches, which is part of why off-plan entry costs are lower.
Mortgage costs — the fees cash buyers skip
If you finance the purchase, add four costs:
- Mortgage registration fee: 0.25% of the loan amount + AED 290, paid to the DLD.
- Bank arrangement fee: typically 0.5–1% of the loan amount (some banks cap or waive it during campaigns).
- Property valuation: AED 2,500–3,500 + VAT, charged by the bank’s approved valuer.
- Life and property insurance: required by UAE lenders; life cover is commonly ~0.4–0.8% of the outstanding loan per year depending on age and health, and building insurance roughly AED 1,000–3,000 annually for a typical apartment.
Non-resident buyers should also note UAE loan-to-value caps: expat first-time buyers can generally borrow up to 80% for properties under AED 5 million (70% above), meaning a 20–30% cash down payment plus the fees above.
Conveyancing and NOC fees
A conveyancer is optional but recommended for overseas buyers — expect AED 6,000–10,000 for a straightforward purchase. Before transfer, the seller must obtain a No Objection Certificate (NOC) from the developer confirming service charges are paid; developers charge AED 500–5,000 + VAT for it, and while it is formally the seller’s task, who pays is negotiable and should be agreed in the MOU.
The ongoing cost buyers forget: service charges
Every owner in Dubai pays annual service charges to maintain the building or community — the single most underestimated cost of ownership. They are billed per square foot per year and vary widely by project:
- Suburban villa communities: roughly AED 2–6 per sq ft (villas in communities like Damac Hills or Arabian Ranches often total AED 8,000–25,000/year).
- Mid-range apartment towers: roughly AED 10–20 per sq ft.
- Prime and branded towers: AED 20–50+ per sq ft in areas like Downtown, Palm Jumeirah and branded residences, where five-star amenities and hotel-standard management drive the rate.
Check the exact rate for any building on the DLD’s official service-charge index before you buy, and factor it into net yield calculations when comparing the best areas to invest.
Utility connection and move-in costs
Budget for DEWA (electricity and water) connection: a refundable deposit of AED 2,000 for an apartment or AED 4,000 for a villa, plus a small activation fee. District-cooled buildings (Empower, Emicool) require a separate chiller deposit, commonly AED 2,000. Some communities also charge move-in permit fees of a few hundred dirhams.
What you do NOT pay in Dubai
This is where Dubai’s total cost of ownership beats most global cities: there is no annual property tax, no capital gains tax, no inheritance tax, and no tax on rental income at the personal level. Residential property sales and rentals are also exempt from the UAE’s 5% VAT (VAT applies to commercial property and to fees/services like commission, not to the home’s price itself). The 4% DLD fee is a one-off — after that, ownership costs are limited to service charges and utilities. For the full picture, see our guide to how UAE tax policy benefits property investors. Buying at AED 2 million or above can also qualify you for the 10-year Golden Visa through property investment.
Worked example: AED 2,000,000 ready apartment with a mortgage
- DLD transfer fee (4%): AED 80,000
- DLD admin fee: AED 580
- Trustee office fee (+VAT): AED 4,200
- Agent commission (2% + VAT): AED 42,000
- Mortgage registration (0.25% of AED 1.6m loan + AED 290): AED 4,290
- Bank arrangement fee (1% of loan): AED 16,000
- Valuation (+VAT): ~AED 3,150
- Conveyancing (optional): ~AED 8,000
- Total one-off costs: ~AED 158,000 (≈7.9%) — plus the AED 400,000 (20%) down payment, DEWA/chiller deposits and first-year service charges.
How to keep costs down
Buy off-plan direct from a developer and there is no commission, and DLD-fee-waiver promotions are common on new launches — current project launches regularly include 50–100% DLD waivers. On the secondary market, negotiate who covers the NOC fee, compare bank arrangement fees (they vary more than rates), and always verify the building’s service-charge rate before committing — a AED 15/sq ft difference costs more over five years than every transfer fee combined. For area-level guidance on where entry costs and service charges balance best against rents, our Dubai community guides break down pricing community by community, or talk to Homesae for a full cost sheet on any property in our current listings.
Frequently asked questions
How much are the total fees when buying property in Dubai?
Plan for roughly 6–8% of the purchase price on top of the price itself for a ready property (4% DLD fee, 2% + VAT agent commission, trustee and admin fees, plus mortgage costs if financing), or around 4–5% for an off-plan purchase direct from a developer, where no commission applies and promotions often cover part of the DLD fee.
Who pays the 4% DLD transfer fee — buyer or seller?
By market convention in Dubai the buyer pays the full 4% DLD transfer fee, although the law allows it to be split. The fee is paid at the registration trustee office on transfer day, together with the AED 580 admin fee for apartments and villas.
Is there any annual property tax in Dubai?
No. Dubai has no annual property tax, no capital gains tax and no tax on rental income at the personal level. After the one-off purchase fees, ongoing costs are limited to annual service charges, utilities and insurance.
How much are service charges in Dubai?
Service charges are billed per square foot per year and vary by project: roughly AED 2–6/sq ft in suburban villa communities, AED 10–20/sq ft in mid-range apartment towers, and AED 20–50+/sq ft in prime and branded buildings. Always check the building’s rate on the DLD service-charge index before buying.
Do I pay VAT when buying a home in Dubai?
Residential property purchases are exempt from the UAE’s 5% VAT — you do not pay VAT on the home’s price. VAT applies only to associated services such as agent commission, trustee fees and conveyancing, and to commercial property transactions.
What extra costs apply if I buy with a mortgage?
Mortgage buyers pay a 0.25% mortgage registration fee (+AED 290) to the DLD, a bank arrangement fee of typically 0.5–1% of the loan, a valuation fee of AED 2,500–3,500, and mandatory life and property insurance. Expats can generally borrow up to 80% on homes under AED 5 million, so budget the 20% down payment plus fees in cash.