The Cost of Buying Property in Dubai
On an AED 750,000 studio the fees come to about AED 49,780. On an AED 5 million villa they come to about AED 304,780. The percentage barely moves — 6.6% against 6.1% — because the big item is the same on both: the Dubai Land Department takes 4% of the price on every transfer, and almost everything else is a flat charge or a negotiable commission.
That 6% to 7% rule of thumb is the number to plan around, and it is the number most overseas buyers discover late. What follows is the whole stack, worked on real prices, plus the running costs nobody quotes in a launch brochure: the service charge, the cooling bill, and what it costs to sell again.
Key Takeaways
- 4% DLD transfer fee on every purchase. Legally split 2% each way; in practice the buyer pays all of it.
- AED 4,200 registration at a trustee office on anything AED 500,000 or above (AED 2,100 below that), plus AED 580 for the title deed or AED 40 to register an off-plan contract on Oqood.
- Agency fee of about 2% of the price on a resale, usually plus 5% VAT on the commission. Direct developer purchases normally carry none.
- A mortgage adds 0.25% of the loan plus AED 290 to register, and a valuation fee of roughly AED 2,500 to 3,500.
- Then it holds costs: service charges of AED 10 to 32 per sq ft a year for apartments, AED 14 to 40 for villas, and no annual property tax on top.
The full stack, three prices
| Item | AED 750,000 | AED 2,000,000 | AED 5,000,000 |
|---|---|---|---|
| DLD transfer fee, 4% | 30,000 | 80,000 | 200,000 |
| Trustee registration | 4,200 | 4,200 | 4,200 |
| Title deed issue | 580 | 580 | 580 |
| Agency fee, 2% + VAT | 15,750 | 42,000 | 105,000 |
| Developer NOC (resale) | 500 – 5,000 | 500 – 5,000 | 500 – 5,000 |
| Cash purchase, fees | ~51,030 | ~127,280 | ~310,280 |
| As % of price | 6.8% | 6.4% | 6.2% |
| In US dollars | USD 13,900 | USD 34,700 | USD 84,500 |
Add a mortgage and three more lines appear: 0.25% of the loan plus AED 290 for mortgage registration, a bank arrangement fee of about 1% of the loan, and a valuation. On a 50% loan against the AED 2 million flat that is roughly AED 2,790 of registration, AED 10,000 of arrangement fee and AED 3,000 of valuation — about AED 15,800 more. How much a bank will lend you at all is in mortgages for non-residents.
Off-plan costs less at the front
Buying from a developer changes the shape of the bill rather than the size of it. There is normally no agency fee, because the developer pays the broker. The Oqood registration of the contract costs AED 40 rather than AED 580, and the title deed fee arrives later, at handover. The 4% is still due, and most developers collect it with the booking amount rather than at completion.
| Off-plan, direct from developer | Ready resale | |
|---|---|---|
| DLD 4% | Yes, usually at booking | Yes, at transfer |
| Registration | AED 4,200 (Oqood AED 40) | AED 4,200 + AED 580 deed |
| Agency fee | Usually none | About 2% + VAT |
| Developer NOC | n/a at purchase | AED 500 – 5,000 |
| Cash needed day one | 10% – 20% booking + 4% | The whole price + fees |
| Rent from | Handover, years away | The month you own it |
Put your own number in rather than working off the example above. Ready or off-plan, cash or mortgage, with or without an agent — the fee stack changes with each of them.
Dubai property calculator — costs, cash needed and net rent
Works from any country: pick your currency, or type your own rate. Fees follow the DLD schedule; rent figures are yours to set.
| Charge | AED | Your currency |
|---|
Fee basis: DLD transfer 4% of price, plus a DLD admin fee of AED 580 on a ready unit and AED 40 at Oqood on an off-plan one; registration trustee AED 4,000 below AED 500,000 and AED 4,200 above, plus 5% VAT; title deed and map about AED 500; agency 2% plus 5% VAT where used; mortgage registration 0.25% of the loan plus AED 290. Rates shown are indicative, read on 9 September 2026, and the pegged ones (USD and the GCC currencies) do not move — edit the rate box for anything else. This is an estimate to plan with, not a quotation, and it does not cover tax in your own country.
What it costs to keep
Dubai charges no annual property tax, which is the headline. The recurring cost that replaces it is the service charge, set per square foot per year and approved by the Land Department's own index. Apartments run about AED 10 to 32 per sq ft; villas AED 14 to 40 including the community master charge. Branded and Downtown towers sit at the top; mid-market communities like JVC and Arjan at the bottom.
| Annual cost | 700 sq ft flat, JVC | 1,000 sq ft flat, Downtown |
|---|---|---|
| Service charge | AED 8,400 at AED 12/sq ft | AED 30,000 at AED 30/sq ft |
| DEWA (water, power) | AED 4,000 – 7,000 | AED 7,000 – 12,000 |
| Chiller / cooling | AED 2,000 – 5,000 if separate | AED 4,000 – 9,000 if separate |
| Management, if let | 5% – 8% of rent | 5% – 8% of rent |
| Ejari per contract | AED 220 | AED 220 |
The service charge is what turns a good gross yield into an ordinary net one. A 9% gross in a mid-market community typically settles at 5.5% to 6.5% net; a 6% gross in Downtown lands nearer 4.8% to 5.5%. The arithmetic by community is in rental yields by area.
What it costs to sell
- Developer NOC: AED 500 to 5,000, and every service charge must be clear before it is issued.
- Agency fee: about 2% of the sale price, negotiable and usually the seller's.
- Mortgage settlement, if any: early settlement charges are capped at 1% of the outstanding balance or AED 10,000, whichever is lower, plus a release fee.
- Off-plan resale: a developer transfer fee that can run to several per cent of the original price, on top of the NOC — check the sale and purchase agreement before you count on flipping.
- No capital gains tax in the UAE. Your country of tax residence may take a view.
Where budgets go wrong
- Forgetting the 4% is on the whole price, not the amount paid so far. On an off-plan unit with a 10% booking, the DLD fee is calculated on the full contract value.
- Assuming the agency fee is included. It is 2% plus VAT on a resale, and it is the buyer's.
- Reading a community service charge instead of the building's. Two towers on the same street can differ by AED 15 per sq ft.
- Ignoring cooling. Where district cooling is billed separately, a capacity charge is payable whether or not anyone lives there.
- Budgeting the entry unit, buying the corner one. The advertised starting price is one unit on a low floor facing a wall.
FAQ
How much are the total fees to buy property in Dubai?
Budget 6% to 7% of the price for a cash purchase: 4% to the Land Department, about AED 4,200 in registration and trustee charges, AED 580 for the title deed and about 2% plus VAT in agency fee on a resale. A mortgage adds roughly another 1.25% of the loan.
Who pays the 4% DLD fee, buyer or seller?
The law splits it 2% each way. Dubai market practice is that the buyer pays the whole 4%, and almost every advertised deal assumes it. It is negotiable in a soft market and rarely negotiated.
Is there property tax in Dubai?
No annual property tax, no tax on rental income and no capital gains tax for individual owners. There is a 5% municipality housing fee levied on tenants through DEWA bills, and the service charge that owners pay to the building.
What are Dubai service charges?
An annual per-square-foot fee covering maintenance, security, cleaning, insurance and shared facilities, approved through the Land Department's service charge index. Apartments run AED 10 to 32 per sq ft, villas AED 14 to 40 including master community charges.
Are there hidden costs in an off-plan purchase?
The ones people miss are the 4% being charged on the full contract value at booking, the developer's own admin charges, and the transfer fee that applies if you resell before handover. Ask for the fee schedule in writing with the sale and purchase agreement.
Can I pay in dollars or pounds?
Payments are settled in dirhams. The dirham has been pegged to the US dollar at 3.6725 since 1997, so a dollar buyer carries no currency risk; a sterling, euro or rupee buyer carries the risk of that currency against the dollar.
Every project we track prints its own fee arithmetic on the entry unit: see the Dubai section, or go back to the buyer's guide. If you are weighing the payment-plan route, read off-plan property in Dubai next.
