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The Dubai Land Department (DLD) fee is a mandatory 4% charge on property purchases that every buyer must pay when acquiring real estate in Dubai.
Understanding these fees is crucial since they represent a significant cost that can range from AED 40,000 on a AED 1 million property to AED 200,000 on a AED 5 million investment, plus additional administrative charges that can add several thousand dirhams to your total transaction costs.
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The DLD fee in Dubai is 4% of the property purchase price, paid by the buyer before property transfer registration.
Additional costs include administrative fees ranging from AED 430-580, registration fees of AED 2,000-4,000 plus VAT, and various other charges that can total AED 10,000-15,000 beyond the main 4% fee.
| Fee Type | Amount | Who Pays |
|---|---|---|
| DLD Transfer Fee | 4% of property price | Buyer (usually) |
| Administrative Fee | AED 430-580 | Buyer |
| Registration Fee | AED 2,000-4,000 + VAT | Buyer |
| Title Deed Issuance | AED 250 | Buyer |
| Trustee Office Fee | AED 4,000-5,250 | Buyer |
| NOC Fee | AED 500-5,000 | Buyer |
| Mortgage Registration | 0.25% of loan + AED 290 | Buyer (if applicable) |
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
How much is the standard DLD fee in Dubai when buying a property?
The standard DLD fee in Dubai is exactly 4% of the property purchase price.
This fee applies to all residential property purchases in Dubai, whether you're buying an apartment in Dubai Marina, a villa in Emirates Hills, or a townhouse in Arabian Ranches. The 4% rate has remained consistent across the Dubai real estate market as of September 2025.
For example, if you purchase a property worth AED 2 million, you will pay AED 80,000 as the DLD transfer fee. On a AED 5 million villa, the DLD fee amounts to AED 200,000. This represents a significant cost that buyers must factor into their total investment budget.
The fee is calculated based on the final agreed purchase price, not the original listing price or any initial asking price. This means if you negotiate the property price down from AED 3 million to AED 2.8 million, the DLD fee will be 4% of AED 2.8 million (AED 112,000).
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Is the DLD fee calculated as a percentage of the property price or is it a fixed amount?
The DLD fee is calculated as a percentage of the property purchase price, not as a fixed amount.
This percentage-based structure means that more expensive properties will have proportionally higher DLD fees. The Dubai Land Department uses this approach to ensure the fee scales with the property value, making it proportional to the transaction size.
Unlike some countries that charge fixed registration fees regardless of property value, Dubai's system ensures that the government revenue from property transfers increases with higher-value transactions. This percentage-based calculation applies to all property types within the residential sector.
The percentage calculation means there is no cap on the DLD fee amount. Whether you buy a studio apartment worth AED 500,000 (DLD fee: AED 20,000) or a luxury penthouse worth AED 50 million (DLD fee: AED 2 million), the 4% rate remains consistent.
What exact percentage does the DLD charge on property purchases in Dubai?
The Dubai Land Department charges exactly 4% of the property purchase price as the transfer fee.
This 4% rate is split legally between the buyer and seller (2% each), but in practice, the buyer pays the full 4% unless specifically negotiated otherwise in the sales agreement. Real estate agents and developers in Dubai typically structure deals assuming the buyer will cover the entire DLD fee.
The 4% rate has been stable in the Dubai property market and applies uniformly across all residential property types, locations, and price ranges. There are no different percentage rates for different areas like Downtown Dubai versus Dubai South, or for different property types like apartments versus villas.
As of September 2025, this percentage has not changed, and the Dubai government has not announced any planned adjustments to the DLD fee structure. The consistency of this rate provides predictability for property investors and buyers planning their purchase budgets.
Are there any additional admin or registration charges on top of the DLD fee?
Yes, there are several additional administrative and registration charges beyond the 4% DLD fee that buyers must pay.
The main additional charges include administrative fees ranging from AED 430 to AED 580 depending on the property type, with apartments and offices charged AED 580, land parcels charged AED 430, and off-plan properties charged AED 40. Property registration fees vary based on property value, with properties under AED 500,000 charged AED 2,000 plus 5% VAT, and properties above this threshold charged AED 4,000 plus 5% VAT.
Title deed issuance costs AED 250 for all property types. The trustee office fee is AED 4,000 for completed properties and AED 5,250 for off-plan properties. Developers typically charge a No Objection Certificate (NOC) fee ranging from AED 500 to AED 5,000, depending on the specific developer and project.
If you're financing the purchase with a mortgage, you'll also pay mortgage registration fees of 0.25% of the loan amount plus AED 290. These additional costs can total between AED 10,000 to AED 15,000 beyond the main 4% DLD fee, depending on your specific transaction details.
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Does the DLD fee apply equally to both off-plan and ready properties in Dubai?
Yes, the 4% DLD fee applies equally to both off-plan and ready properties in Dubai.
Whether you purchase a completed apartment in Dubai Marina or an off-plan development in Dubai South, you will pay the same 4% DLD transfer fee. The Dubai Land Department does not differentiate between property completion status when calculating the main transfer fee.
However, there are some differences in the additional administrative charges. Off-plan properties have a lower administrative fee of AED 40 compared to AED 580 for completed apartments and offices. The trustee office fee is higher for off-plan properties at AED 5,250 versus AED 4,000 for completed properties.
Some developers occasionally offer DLD fee waivers or discounts as promotional incentives, particularly for off-plan launches or during special sales campaigns. These promotions are temporary and developer-specific, not standard regulatory exemptions. The developer typically absorbs the DLD fee cost as a marketing strategy to attract buyers.
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Who is responsible for paying the DLD fee, the buyer or the seller?
The buyer is almost always responsible for paying the full DLD fee in Dubai property transactions.
While the legal framework technically splits the 4% fee between buyer and seller (2% each), market practice dictates that buyers pay the entire 4% amount. This has become the standard expectation across all Dubai property transactions, from luxury villas in Palm Jumeirah to affordable apartments in International City.
Real estate purchase agreements in Dubai typically include clauses stating that the buyer will cover all DLD fees and related registration costs. Sellers generally price their properties with the expectation that they will not be responsible for these transfer costs.
In rare cases, buyers might negotiate for the seller to cover part or all of the DLD fee, but this would need to be explicitly stated in the sales agreement and would likely result in a higher property price to compensate the seller. Such arrangements are uncommon and typically only occur in buyer's market conditions or for high-value transactions where significant negotiation leverage exists.
At what stage of the purchase process does the buyer need to pay the DLD fee?
The DLD fee must be paid before the property transfer registration can be completed, typically during the final transfer appointment at the Dubai Land Department.
The payment timing follows a specific sequence: first, the sales agreement is signed and initial deposits are made, then all financing arrangements are finalized, and finally, the DLD fees and administrative charges are paid immediately before or during the property transfer registration process. The Dubai Land Department will not complete the property transfer without receiving the full DLD fee payment.
Buyers have up to 60 days from the sales agreement date to complete the transfer registration and pay the DLD fees. If this deadline is missed, the purchase agreement may be cancelled, and buyers could lose their deposits. This timeline provides some flexibility for arranging financing and completing due diligence.
For off-plan properties, the process differs slightly as the final transfer occurs upon project completion and issuance of the completion certificate. However, the DLD fee payment still occurs at the final transfer stage, not during the initial off-plan purchase or interim payment stages.
How is the DLD fee paid—bank transfer, manager's cheque, or online payment?
The DLD fee can be paid through several accepted methods including manager's cheque, bank transfer, and online payment via official DLD e-services.
Manager's cheques remain the most commonly used payment method, as they provide immediate verification of funds and are widely accepted by the Dubai Land Department. The cheque must be drawn from a UAE bank and made payable to the Dubai Land Department.
Bank transfers are also accepted and are increasingly popular for larger transactions, as they provide a clear electronic trail and eliminate the need to carry large cheques. The transfer must be made to the official DLD bank account, and confirmation receipts must be presented during the registration appointment.
Online payments through the official DLD e-services portal are available for certain transaction types and offer the convenience of completing payments remotely. However, not all property transfers are eligible for online payment processing, particularly complex transactions involving multiple parties or special circumstances. Cash payments are not accepted for DLD fees due to the large amounts involved and regulatory requirements.
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Can the DLD fee be financed through a mortgage, or must it be paid in cash upfront?
The DLD fee cannot be financed through a mortgage and must be paid in cash upfront as part of the closing costs.
UAE banks and financial institutions do not include DLD fees in their mortgage lending calculations. The mortgage typically covers only the property purchase price, while all transfer fees, administrative charges, and registration costs must be paid separately by the buyer from their own funds.
This requirement means buyers must budget for the DLD fee as part of their cash requirements, separate from any mortgage financing. For a property worth AED 3 million with an 80% mortgage, the buyer needs AED 600,000 for the down payment plus an additional AED 120,000 for the DLD fee, totaling AED 720,000 in cash requirements before considering other closing costs.
The cash requirement for DLD fees is one reason why property investors in Dubai need substantial liquid funds beyond their mortgage down payment. International buyers should ensure these funds are available in UAE dirham or easily convertible currencies before initiating the purchase process.
Are there any exemptions or discounts on the DLD fee for certain buyers or property types?
There are no standard exemptions or discounts on the DLD fee based on buyer nationality, property type, or purchase purpose, but developers occasionally offer promotional waivers.
The Dubai government does not provide DLD fee reductions for first-time buyers, UAE nationals versus foreign buyers, or based on property location within Dubai. The 4% rate applies uniformly regardless of whether you're buying for investment purposes or personal residence.
Developer promotions represent the main exception to standard DLD fee payments. Some developers, particularly during project launches or sales campaigns, offer to pay the DLD fees on behalf of buyers as a marketing incentive. These offers are temporary, project-specific, and typically available only during limited promotional periods.
Such waivers are more common for off-plan properties where developers are competing for early sales commitments. However, buyers should note that promotional DLD fee waivers often coincide with higher property prices, so the effective discount may be less than the full 4% fee amount. These promotions should be evaluated as part of the overall property pricing and value proposition.
It's something we develop in our Dubai property pack.
Does the DLD fee differ between freehold and leasehold properties in Dubai?
No, the DLD fee does not differ between freehold and leasehold properties in Dubai—both property ownership types are charged the same 4% transfer fee.
Whether you purchase a freehold apartment in Dubai Marina where you own the property outright, or a leasehold property where you have long-term usage rights, the DLD calculation and payment requirements remain identical. The Dubai Land Department applies the same fee structure regardless of the ownership structure.
The 4% rate applies to the transaction value in both cases, calculated on the agreed purchase price stated in the sales agreement. Administrative fees and registration charges also remain the same between freehold and leasehold properties, with no differentiation in the fee schedule.
This uniform fee structure simplifies the purchase process and ensures predictable costs for buyers regardless of which ownership type they choose. The main differences between freehold and leasehold properties relate to ownership rights and resale restrictions, not to the initial transfer costs and DLD fees.
If the property price is negotiated, does the DLD fee always reflect the final agreed purchase price?
Yes, the DLD fee is always calculated based on the final agreed purchase price as declared in the official sales agreement and transfer documents.
The Dubai Land Department calculates the 4% fee using the actual transaction price stated in the property transfer registration, not the original listing price or any preliminary price discussions. This means if you negotiate a property price down from AED 4 million to AED 3.5 million, your DLD fee will be AED 140,000 (4% of AED 3.5 million), not AED 160,000 based on the original asking price.
All parties involved in the transaction—buyer, seller, and real estate agent—must declare the true transaction price to the Dubai Land Department. Attempting to declare a lower price than actually paid to reduce DLD fees is illegal and can result in transaction cancellation and legal penalties.
The transparent pricing requirement ensures that the Dubai property market maintains accurate transaction records and that the government receives appropriate transfer fees based on actual market values. This system also provides reliable data for property valuation and market analysis purposes.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding DLD fees is crucial for budgeting your Dubai property purchase, as the 4% transfer fee plus additional administrative costs can add AED 50,000-300,000 to your transaction depending on property value.
As of September 2025, these fees remain unchanged from previous years, providing predictable closing costs for property investors and homebuyers in the Dubai real estate market.
Sources
- Driven Properties - Property Service Charges Dubai
- Grovy - Property Service Charges in Dubai DLD Fees 2025
- DSX Real Estate - What is a DLD Fee
- Banke Real Estate - DLD Waiver and How to Use It
- HJ Real Estates - DLD Fees and Property Charges
- Noble Horizon - Dubai Property Registration Fees
- Keltand & Co Realty - Property Service Charges DLD Fees 2025
- Mortgage Finder - Dubai Property Fees