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What buying in Dubai actually costs

Dubai has no annual property tax, but a purchase carries one-off fees that most buyers underestimate. Put in a price and this shows every line you will actually pay, so you know the cash you need before you make an offer rather than after.

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What each line means

01

The 4% transfer fee is the big one

It goes to the Dubai Land Department and is calculated on the purchase price, not on the mortgage. It is normally paid by the buyer, though who pays is negotiable in a soft market.

02

Agency commission is 2% plus VAT on a resale

On off-plan the developer pays the brokerage instead, so the price you pay is the same whether you buy direct or through us. The difference is having someone read the SPA on your side.

03

Mortgage costs sit on top of your deposit

Registering the mortgage costs 0.25% of the loan, the lender usually charges up to 1% to arrange it, and a valuation runs around AED 2,500 to 3,500. All payable in cash at completion.

04

Service charges are the cost people forget

They are annual, charged per square foot, and vary hugely between a simple mid-market building and a premium waterfront tower. Ask for the current rate and the last 3 years of it before you buy, because a high service charge quietly eats a good rental yield.

Frequently asked

Rates shown are the standard Dubai schedule and are current guidance, not a quote. Fees change and some are negotiable. We confirm the exact figures for your property in writing before you commit. More answers on our Dubai property FAQ.

How much are closing costs when buying property in Dubai?
Budget roughly 6 to 8% of the purchase price on top of the price itself. The largest item is the 4% Dubai Land Department transfer fee. The rest is the trustee registration fee of about AED 4,200, agency commission of 2% plus VAT, a developer No Objection Certificate fee of between AED 500 and AED 5,000, and title deed issuance of about AED 580. Financing adds a mortgage registration fee of 0.25% of the loan, a bank arrangement fee of up to 1%, and a valuation of around AED 2,500 to 3,500.
Who pays the 4% DLD transfer fee, buyer or seller?
In practice the buyer pays it. The fee is legally split 2% each way, but the market convention in Dubai is that the buyer covers the whole 4%. It is negotiable as part of the deal and in a slower market some sellers will absorb part of it.
How much deposit do I need to buy in Dubai?
On a ready resale you pay 10% to the seller when you sign Form F. If you are financing, UAE Central Bank rules mean an expat buying a first home under AED 5 million puts down 20% of the price and 30% above that, with all the fees payable in cash on top of the deposit. Non-residents typically need 40 to 50%.
Is there any property tax in Dubai?
No annual property tax and no personal income tax on rental income. What you pay is the one-off 4% transfer fee at purchase, annual service charges to the building or community, and a 5% municipality fee on residential rent that tenants pay through the DEWA bill. Corporate tax can apply if you hold the property through a company.
Do these costs apply to off-plan purchases too?
Mostly. The 4% DLD fee still applies and is paid when your interest is registered as an Oqood, usually at or near booking. The agency commission is paid by the developer rather than by you, there is no seller No Objection Certificate, and the payments themselves follow the developer's instalment schedule into a RERA-regulated escrow account.
Can the fees be added to my mortgage?
No. UAE lenders finance a percentage of the property value only, and the fees have to be paid in cash at completion. This is the single most common reason a purchase stalls, so work out the full cash figure before you make an offer.
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