The real cost of buying property in Dubai.
The 4% transfer fee is the number everyone knows. Here is every other cost a buyer pays, worked through on a real AED 2 million purchase.
Budget 6 to 7% on top of the price for a resale home in Dubai, a little more with a mortgage. Almost all of it is paid on one day, at the trustee office, by manager's cheque.
The fees, one by one
Dubai has no stamp duty. Every sale is registered with the Dubai Land Department (DLD), and the registration fee is the biggest cost. The rest are fixed government charges and professional fees.
DLD transfer fee: 4% of the price
The law splits this fee between buyer and seller, but by market convention the buyer usually pays all of it. Make sure the MOU says who pays what.
DLD administration and title deed: about AED 580
A fixed charge for issuing the new title deed on an apartment or villa (AED 430 for land).
Registration trustee office: AED 4,000 plus VAT
The trustee office is where the transfer actually happens. The fee is AED 4,000 plus VAT for properties at AED 500,000 or more, and AED 2,000 plus VAT below that.
Agency fee: usually 2% plus VAT
Commission is set by agreement, not by law, and 2% plus VAT is the norm on resale. When you buy off-plan, the developer usually pays the agent instead.
Mortgage registration: 0.25% of the loan plus AED 290
Paid to the DLD only if you borrow. Your bank will also charge for a valuation, typically AED 2,500 to 3,500 plus VAT, and its own arrangement fee.
Developer NOC: paid by the seller
Before a resale can transfer, the developer issues a no-objection certificate confirming the service charges are paid. It costs AED 500 to 5,000 depending on the developer, and is normally the seller's cost.
Worked example: an AED 2 million apartment
A resale apartment at AED 2,000,000, bought with an 80% mortgage of AED 1,600,000.
Excludes the bank's arrangement fee, which varies by lender. A cash buyer skips the last two lines: AED 126,780, or 6.3% of the price.
The fee schedule is fixed. What catches buyers out is timing: almost everything is due in cleared funds on transfer day.
When each cost is paid
Signing the MOU
Buyer and seller sign the RERA standard contract (Form F). The buyer usually provides a 10% deposit, held until transfer.
Before transfer
The seller obtains the developer NOC. With a mortgage, the bank values the property and issues its final offer.
Transfer day
At the trustee office the buyer hands over manager's cheques for the price (or the bank does), the 4% DLD fee and the trustee fee. The new title deed is issued the same day.
Order manager's cheques a few working days early. The DLD fee is paid by manager's cheque from a UAE bank, and a missing cheque is one of the most common reasons a transfer slips.
Ask for the service charge history before you make an offer. Service charges are the main ongoing cost of owning in Dubai and vary widely between buildings. The DLD publishes approved rates.
Off-plan is cheaper to enter, not cheaper overall. You still pay the 4% at signing, but there is usually no agency fee or trustee transfer fee.
What you won't pay
There is no annual property tax and no capital gains tax for individual owners in Dubai. The ongoing costs are service charges, utilities and a municipality housing fee collected through the DEWA bill.
Property held through a company can fall within the UAE corporate tax regime, so take tax advice before you decide how to hold it.
Common questions
Who pays the 4% DLD fee in Dubai?
By law it is split between buyer and seller, but in practice the buyer usually pays the full 4%. Agree it in writing in the MOU.
How much should I budget in total?
About 6 to 7% of the price for a resale home, a little more with a mortgage. Off-plan bought direct from the developer usually comes to just over 4%.
Can I pay the DLD fee by card?
The 4% transfer fee is paid by manager's cheque at the trustee office. Some smaller administrative charges can be paid by card.
Is there an annual property tax in Dubai?
No. Individual owners pay no annual property tax and no capital gains tax. Budget instead for service charges and utilities.
Law No. 7 of 2006 on Real Property Registration in the Emirate of Dubai
General information, correct as of November 2026. Fees and rules change, so confirm current figures before you commit. AHR Real Estate does not give legal or tax advice.
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