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Every Fee and Tax on a Dubai Purchase Itemised
Verified: 03 August 2026 Last Updated: 03 August 2026 Author: Straits Properties LLC
The Short Answer
A cash off-plan purchase from a Dubai developer typically costs 4.5–5% above the property price, all-in. A cash secondary (ready) purchase runs 6–8%. A mortgaged ready purchase runs roughly 7–10%. The single largest line in every scenario is the Dubai Land Department 4% transfer fee. There is no stamp duty, no VAT on residential sales, no annual property tax, and no capital gains tax for individual owners.
One rule worth knowing before you budget: Dubai banks lend against the property price only. Transaction fees (DLD 4%, trustee, agency) must be paid in cash and can't be added to the mortgage.
Dubai property buying costs are unusually transparent by international standards; there is one big line and a handful of small ones, all published, all traceable, but "transparent" isn't the same as "obvious," and the small ones add up. This page lists every fee, groups them by whether they apply to your specific purchase, and shows the total for four common scenarios so you can budget precisely.
The one number that matters: DLD transfer fee
The Dubai Land Department charges a 4% real estate transfer fee on the sale value. It is the largest single line in every purchase, the reason Dubai's "acquisition tax" figure across all our comparisons is 4%, and the fee that has been unchanged since a 2013 DLD circular raised it from 2%. Legally, the rule is a 2% / 2% split between buyer and seller; by universal market practice, the buyer pays the full 4%, and every MOU we see written in Dubai assigns it that way. Anything else would need to be negotiated explicitly and written into the SPA.
On off-plan bought direct from a developer, some developers absorb the DLD fee as a launch incentive, a real cash saving worth 4% of the price. On resale of an off-plan unit before handover, the 4% is still due at title transfer, plus a developer NOC fee (below) that can also be material. Details vary; ask the specific project.
Every other government fee
Beyond the 4%, DLD-side charges are small and mostly fixed regardless of price. The current schedule (verified 2026):
Off-plan bookings register through the Oqood system rather than a title deed. The full 4% DLD fee timing depends on the developer's policy; most defer it to handover, some collect at booking. The Oqood registration itself is nominal (the AED 40 admin + a couple of hundred dirhams in processing).
Agency Commission
For secondary-market (ready property) purchases, the buyer's agent commission is 2% of the sale price plus 5% VAT, effective 2.1%. On direct-from-developer off-plan, the developer pays the agent commission (including to us), which is one of the reasons off-plan cost-of-entry is materially lower than resale. This does not make our advice free; it makes it developer-funded, which is exactly the conflict this whole site discloses.
Agency commission is one of the two lines that is genuinely negotiable in weaker markets or on larger deals. The other is the developer NOC (below).
Developer NOC (No Objection Certificate)
Only on secondary sales. When a ready or handed-over property changes hands, the developer must issue a No Objection Certificate confirming that all service charges are paid up to date and that the seller has cleared their community-side obligations. The NOC fee is charged by the developer, not the DLD, and it varies widely: typically AED 500–5,000, occasionally more for luxury developers. Not applicable on first sale from developer.
Mortgage-related fees (only if financing)
If you use a Dubai mortgage:
Two rules worth knowing. First, transaction fees (DLD 4%, agency, trustee) are paid in cash; banks don't finance them as part of the mortgage principal. Second, LTVs for non-residents typically run 50–75% depending on the bank, profile, and property. Model the transaction fees as cash out-of-pocket even if you're taking maximum leverage on the rest.
DEWA and utility setup
At handover of a completed unit, you'll open a DEWA (Dubai Electricity and Water Authority) account. Refundable security deposit is typically AED 2,000 for apartments and AED 4,000 for villas, plus a small connection fee (approximately AED 100). If the building is on district cooling, a separate account with Empower or Tabreed is required and carries its own refundable deposit — usually a couple of thousand dirhams. Fixed setup costs, not ongoing.
Ejari tenancy registration (AED 220) applies when a tenant moves in, not when you take handover as owner-occupier. If you rent your unit, the tenant typically pays Ejari, but check what your management contract says.
First-year service charge prepayment
Some developers require the first year's service charge (or a portion of it) at handover, in advance, to fund initial operations. Amounts vary by community and unit size — model this as service-charge-rate × unit-sqft, paid at handover, then annually thereafter. It's not a fee to the DLD or a tax; it's a cash-flow item that shows up in the year you take the keys.
Costs an overseas buyer should also budget for
Remittance and FX. Moving SGD, MYR, IDR or other Asian currency into an AED escrow or trustee account will incur bank transfer fees (a few hundred dollars per wire) and, more meaningfully, an FX spread of typically 0.4–1.0% depending on the bank and provider. On a AED 2M purchase that spread alone can be AED 8,000–20,000. Specialist FX providers can compress it materially versus a retail bank. Not a fee to Dubai, but real money.
Power of attorney/conveyancing. If you cannot travel for handover or SPA execution, you'll grant a power of attorney to a representative in Dubai. UAE notarisation and attestation costs a few thousand dirhams plus a modest legal fee if a lawyer drafts the POA. Optional but worth doing if you're not present.
Legal / conveyancing (optional). Not required by law — the DLD trustee process is the legal transfer — but many overseas buyers engage a UAE-qualified lawyer to review the SPA, the developer's escrow arrangement and title, particularly on off-plan. Fees vary; typical range AED 5,000–15,000 depending on scope.
What Dubai does not charge you
To close off the list, the following do not exist for individual property investors in Dubai. Every one of them is a real tax somewhere else, and none of them applies here:
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No stamp duty beyond the 4% DLD fee
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No VAT on residential property sales
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No annual property tax
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No tax on rental income for individual owners
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No capital gains tax on sale
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No inheritance tax
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No holding-period tax equivalent to Singapore's SSD or Malaysia's RPGT
Worked totals: Four common scenarios
Scenario 1: Cash off-plan direct from developer, AED 1.5M unit, developer absorbs DLD. Oqood registration and processing: ~AED 300. First-year service charge prepayment (AED 15/sqft × 900 sqft): ~AED 13,500. Trustee: none (developer registers). Agency: paid by developer. Remittance/FX at 0.6% spread: AED 9,000. All-in above price: ~AED 22,800, or about 1.5%. The exceptional case, only when the DLD absorption promotion is real.
Scenario 2: Cash off-plan direct from developer, AED 1.5M unit, no DLD absorption. DLD 4% (at booking or handover per developer policy): AED 60,000. DLD admin + Oqood + title deed conversion: ~AED 800. First-year service charge prepayment: ~AED 13,500. Agency: developer-paid. Remittance/FX at 0.6%: AED 9,000. All-in above price: ~AED 83,300, about 5.5% including the first-year service charge, or ~4.7% excluding it.
Scenario 3: Cash secondary/ready purchase, AED 1.5M unit. DLD 4%: AED 60,000. DLD admin fee: AED 580. Title deed: AED 250. Map + knowledge fees: AED 270. Trustee fee + VAT: AED 4,410. Agency 2% + VAT: AED 31,500. Developer NOC: AED 3,000 (assumption; varies). Remittance/FX at 0.6%: AED 9,000. All-in above price: ~AED 109,010, about 7.3%.
Scenario 4: Mortgaged ready purchase, AED 1.5M unit at 60% LTV (AED 900,000 loan). All of Scenario 3, plus: mortgage registration 0.25% of AED 900,000 + AED 290: AED 2,540. Bank arrangement fee at 0.75% of loan: AED 6,750. Property valuation: AED 3,000. All-in above price: ~AED 121,300, about 8.1%.
Adjust for your specific unit, market phase, and any developer incentives on offer. The calculator will let you plug in your inputs.
Frequently Asked
Is the 4% DLD fee really always the buyer's? What about the 2%/2% split I've heard about?
The written rule is a split; the market practice is buyer-pays-all, on essentially every transaction. If a seller offers to share the DLD fee (occasionally seen in slow markets) get it in writing in the SPA before signing. Assume 4% on you unless told otherwise.
How much of the total is negotiable?
The DLD 4% and the small government fees are fixed. The agency commission (2%) and the developer NOC are the two negotiable lines in practice, more so in slower markets and on larger deals. The mortgage arrangement fee can also flex between banks. Trustee fees are fixed.
Do I pay VAT on the property?
No. Residential property sales in the UAE are exempt or zero-rated for VAT. VAT does apply to some of the services around the transaction; the 5% on agency commission and trustee fees is the main example. Commercial property is different.
Do I need to pay all fees before I can take title?
Yes. Fees are settled at the trustee office at transfer, and the title deed issues immediately after. Off-plan Oqood is issued after the small Oqood fees; the full 4% and title deed follow at handover.
Can I pay these fees in a currency other than AED?
The DLD, trustee office, and developers require AED. Your bank does the conversion; the FX spread is the "hidden" cost. This is why the remittance/FX line matters and why timing the transfer versus your incoming rent (or your card's spot rate) can be worth optimising for a large purchase.
Can transaction fees be added to the mortgage?
No. Model the DLD 4%, agency, trustee and other transaction fees as cash out-of-pocket at transfer — even a maximum-LTV buyer needs them liquid. Confirm current terms with your bank.
Fees verified 3rd August 2026 against DLD, Real Estate Registration Trustee office schedules, current 2026 UAE Central Bank guidance on mortgage-financed transaction fees, and current industry data. Ranges are indicative and can vary by trustee office, developer and bank. This page is research, not financial, tax or investment advice. InvestInDubai.Asia is operated by Straits Properties LLC (RERA Licence No. 60340), a licensed Dubai real estate brokerage. We earn commission (typically paid by the developer) when you buy through us. That conflict is disclosed here and on every memo, and our ratings are the application of published criteria to public facts.