Authored by the expert who managed and guided the team behind the UAE Property Pack
Yes, the analysis of Dubai's property market is included in our pack
Buying property in Dubai involves multiple fees and taxes that can add up to 8-10% of your purchase price. Understanding these costs upfront helps you budget accurately and avoid surprises during the transaction process.
If you want to go deeper, you can check our pack of documents related to the real estate market in Dubai, based on reliable facts and data, not opinions or rumors.
Dubai property transactions involve mandatory Dubai Land Department fees of 4% plus registration costs around AED 5,000, agent commissions of 2% plus VAT, and various utility setup charges.
For a typical AED 1.5 million apartment purchase, expect total upfront costs between AED 100,000-120,000 excluding mortgage fees, plus annual service charges of AED 10-35 per square foot.
| Fee Category | Rate/Amount | Example Cost (AED 1.5M) |
|---|---|---|
| DLD Transfer Fee | 4% of purchase price | AED 60,000 |
| Registration & Admin Fees | Fixed amounts | AED 5,010 |
| Agent Commission + VAT | 2% + 5% VAT | AED 31,500 |
| Developer NOC Fee | AED 2,500-5,000 | AED 3,750 |
| Utility Setup | Various charges | AED 6,250 |
| Annual Service Charges | AED 10-35/sq ft | AED 18,000/year |
| Total Upfront Costs | Approximately 7-8% | AED 106,510 |
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
What specific property details should we use for calculating all fees and taxes?
For this complete breakdown, we're using a typical Dubai apartment purchase scenario that represents most foreign investor transactions.
The example property costs AED 1,500,000, which is standard for a new-build apartment between 900-1,200 square feet in popular areas like Dubai Marina or Business Bay. This property is intended as a buy-to-let investment rather than owner occupation.
We're assuming you're a non-UAE resident, meaning you don't hold an Emirates ID or residency visa tied to property ownership. This status affects certain fee structures and mortgage terms. The calculations also assume you're purchasing as an individual rather than through a company structure.
It's something we develop in our Dubai property pack.
How much is the Dubai Land Department transfer fee and who pays it?
The Dubai Land Department (DLD) transfer fee is exactly 4% of your purchase price, which is mandatory for all property transactions in Dubai.
On your AED 1,500,000 apartment, this fee equals exactly AED 60,000. This represents the single largest cost in your transaction after the down payment. The buyer almost always pays this fee, though technically it can be negotiated with the seller in rare circumstances.
This 4% rate applies regardless of whether you're buying ready property or off-plan units. The fee must be paid to complete the title deed transfer and officially register you as the property owner. As of September 2025, this rate remains unchanged from previous years.
What are all the Dubai Land Department registration and administrative fees?
Beyond the 4% transfer fee, several smaller DLD fees apply to complete your property registration.
The title deed issuance fee costs AED 250, which covers the physical title deed document. The DLD administrative fee ranges from AED 540-580 for ready properties or AED 430 for off-plan purchases, depending on the specific transaction type.
You'll also pay a registration trustee fee of AED 4,000 plus 5% VAT (total AED 4,200) for properties above AED 500,000, which covers third-party verification services. Finally, there's a knowledge and innovation fee of AED 20 that supports DLD's technology initiatives.
The total of these miscellaneous fees equals approximately AED 5,010 for ready properties (AED 250 + AED 580 + AED 4,200 + AED 20).
What additional fees apply for off-plan property purchases?
Off-plan purchases require Oqood registration, which adds specific costs to your transaction.
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The Oqood registration fee equals 4% of your purchase price, the same rate as the regular DLD transfer fee. For your AED 1,500,000 apartment, this means another AED 60,000. However, this amount often gets credited toward your final DLD transfer fee when the property completes.
You'll also pay an Oqood administrative fee of AED 1,050, though some developers cover this cost as part of promotional offers. Both fees are typically due shortly after signing your sales and purchase agreement, usually within the first payment installment.
How much do real estate agents charge, including VAT?
Real estate agent commissions in Dubai follow a standard structure across the market.
Agents charge 2% of the purchase price as their base commission. On your AED 1,500,000 apartment, this equals AED 30,000. However, UAE law requires agents to add 5% VAT on top of their commission, bringing the total to AED 31,500.
This VAT applies because real estate services are subject to UAE's value-added tax system. Some buyers attempt to negotiate lower commissions, but 2% plus VAT remains the market standard. The agent's fee is typically paid upon completion of the sale and title deed transfer.
What is the developer's NOC fee and who covers this cost?
The No Objection Certificate (NOC) fee is charged by developers when you transfer property ownership.
This fee ranges from AED 500 to AED 5,000 depending on the specific developer and property project, with most charging between AED 2,500-5,000. The NOC confirms that all service charges and community fees are paid up to date before ownership transfer.
Buyers typically pay this fee, though you can sometimes negotiate with sellers to cover it as part of the purchase agreement. The exact amount varies significantly between developers, so confirm the specific fee with your developer before completing the transaction.
What mortgage-related fees apply if you're financing the purchase?
Dubai property financing involves both government registration fees and lender-specific costs.
| Mortgage Fee Type | Rate/Amount | Example Cost |
|---|---|---|
| DLD Mortgage Registration | 0.25% of loan + AED 290 | AED 3,103 |
| Bank Processing Fee | 0.5-1% of loan (capped) | AED 2,500-5,000 |
| Property Valuation | Fixed fee | AED 2,500-3,000 |
| Life Insurance | 0.3-0.5% annually | AED 3,375-5,625/year |
| Home Insurance | Annual premium | AED 1,000-2,000/year |
| Early Settlement Fee | Up to 1% or AED 10,000 | Variable |
The DLD mortgage registration fee costs 0.25% of your loan amount plus a fixed AED 290 administrative charge. For a 75% loan-to-value mortgage on your AED 1,500,000 property (AED 1,125,000 loan), this equals AED 3,103 total.
Banks charge their own processing fees, typically 0.5-1% of the loan amount but usually capped at AED 2,500-5,000. Property valuations cost AED 2,500-3,000, and mandatory life insurance runs 0.3-0.5% of the loan amount annually.
What utility setup and move-in costs should you budget for?
Setting up utilities and moving into your Dubai property involves several one-time connection charges.
DEWA (Dubai Electricity and Water Authority) charges AED 2,000-4,000 for initial connection, plus requires a refundable deposit of AED 2,000-3,000 based on your estimated usage. If your building uses a chiller system for air conditioning, expect an additional AED 1,000-2,000 deposit.
Telecommunications setup through providers like Etisalat or du costs AED 250-500 for basic internet and cable services. The total one-time utility and connection charges typically range from AED 4,500-8,000, with AED 6,250 being a reasonable budgeting estimate.
These deposits are generally refundable when you terminate services, though DEWA may retain portions to cover final bills.
How much are annual service charges and community fees?
Dubai properties charge annual service and maintenance fees that vary significantly by location and building quality.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Service charges range from AED 10-35 per square foot annually, depending on the building's amenities, location, and management company. Basic apartment buildings charge around AED 10-15 per square foot, while luxury developments with extensive facilities can reach AED 25-35 per square foot.
For your 1,000 square foot apartment, annual service charges would typically cost AED 18,000 (at AED 18 per square foot, which is average for mid-range Dubai properties). These fees cover building maintenance, security, common area utilities, and amenity upkeep.
Master community fees may apply separately in developments like Dubai Marina or Downtown Dubai, adding another AED 3-8 per square foot annually.
What recurring costs apply if you rent out the property?
Rental properties in Dubai require several registrations and ongoing fees that affect your investment returns.
Ejari registration with Dubai Municipality costs AED 100-250 annually and is mandatory for all rental agreements. This system registers your lease contract and provides legal protection for both landlords and tenants.
Dubai Municipality charges a 5% fee on annual rent for long-term leases, which you can typically pass to tenants. For short-term rentals through platforms like Airbnb, tourism fees can reach AED 15 per night depending on the area and property type.
Professional property management companies charge 5-8% of annual rent if you hire them to handle tenant relations, maintenance, and rent collection. You should also budget 5-10% of annual rent for ongoing maintenance and repairs not covered by service charges.
It's something we develop in our Dubai property pack.
What costs and taxes apply when you sell the property?
Selling your Dubai property involves several exit costs that reduce your final proceeds.
Real estate agent commission for sales follows the same 2% plus 5% VAT structure as purchases, meaning AED 31,500 on a AED 1,500,000 resale. The developer NOC fee applies again, typically AED 500-5,000 depending on the specific development.
If you have an outstanding mortgage, banks charge early settlement fees up to 1% of the remaining loan balance or AED 10,000 maximum, whichever is lower. The buyer of your property will pay the new 4% DLD transfer fee, not you as the seller.
Dubai has no capital gains tax for individual property owners, making it attractive for investors. However, if you own property through a corporate structure, UAE corporate tax rules may apply to any gains, so consult a tax advisor for company-owned properties.
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.
Dubai property investment requires careful budgeting for multiple fees beyond the purchase price.
Understanding these costs upfront helps you calculate true investment returns and avoid financial surprises during transactions.
Sources
- Grovy - Property Service Charges in Dubai DLD Fees 2025
- Homeland - Dubai Property Ownership Transfer Fee Full Guide 2025
- Home Dubai - DLD Transfer Fee
- Dubizzle - DLD Registration Fees Payment Methods
- Injaz RT - Registration Trustee Fee in Dubai
- Next Level Real Estate - Conveyance Fees in Dubai 2025
- Engel & Völkers - Oqood Dubai
- Property Solvers - Hidden Costs of Off-Plan Properties