Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack
Yes, the analysis of Dubai's property market is included in our pack
Buying property in Dubai as a foreigner comes with a specific set of costs, taxes, and fees that you need to understand before signing anything.
This guide breaks down every expense you will face when purchasing residential real estate in Dubai in 2026, from mandatory government fees to optional professional services.
We constantly update this blog post to reflect the latest official rates and market practices in Dubai's property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Dubai.
Fact-checked and reviewed by our local expert
Ines Benaddi 🇲🇦🇫🇷
Real Estate Agent, Dubai Real Estate
Overall, how much extra should I budget on top of the purchase price in Dubai in 2026?
How much are total buyer closing costs in Dubai in 2026?
As of early 2026, total buyer closing costs in Dubai typically range from 5% to 9% of the purchase price, which means on a 2 million AED property (around 545,000 USD or 500,000 EUR) you should expect to pay between 100,000 and 180,000 AED (27,000 to 49,000 USD or 25,000 to 45,000 EUR) in additional costs.
The minimum extra budget possible in Dubai is around 2.5% to 3.5% of the purchase price if you pay cash, negotiate a 2% DLD fee split with the seller, and skip using a buyer agent, which translates to roughly 50,000 to 70,000 AED (14,000 to 19,000 USD or 12,500 to 17,500 EUR) on a 2 million AED purchase.
The maximum extra budget you should plan for in Dubai reaches 7% to 10% of the purchase price when you factor in paying the full 4% DLD registration fee, a 2% buyer agent commission plus VAT, mortgage registration fees, and conveyancing costs, meaning you could pay up to 200,000 AED (55,000 USD or 50,000 EUR) on that same 2 million AED property.
Whether your Dubai closing costs land at the low or high end depends mainly on four factors: whether you negotiate the DLD fee split with the seller, whether you use financing (mortgages add 0.25% plus bank fees), whether you hire a buyer agent (typically 2% plus VAT), and whether you buy off-plan (where developers often cover commission) or resale.
What's the usual total % of fees and taxes over the purchase price in Dubai?
The usual total percentage of fees and taxes over the purchase price in Dubai is around 6% to 8% for a typical buyer in 2026, making it relatively predictable compared to many other global property markets.
The realistic range that covers most standard property transactions in Dubai spans from about 4.5% on the low end (cash purchase with fee splitting) to about 9.5% on the high end (mortgage purchase with full buyer-paid fees), so most buyers fall somewhere in the middle.
Government fees make up the largest portion of this total in Dubai, with the 4% DLD registration fee alone representing more than half of typical closing costs, while professional services like agent commission (around 2%) and conveyancing (0.25% to 0.75%) account for the rest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Dubai.
What costs are always mandatory when buying in Dubai in 2026?
As of early 2026, the mandatory costs when buying property in Dubai include the 4% DLD sale registration fee (often paid by buyer in practice), the title deed issuance fee of 250 AED (70 USD or 65 EUR), the property map fee of 250 AED, knowledge and innovation fees of around 580 AED (160 USD or 145 EUR) combined, and trustee or service partner processing fees that typically run between 4,000 and 5,000 AED (1,100 to 1,400 USD or 1,000 to 1,250 EUR) plus VAT.
Optional but highly recommended costs in Dubai include conveyancing or legal support (5,000 to 15,000 AED or 1,400 to 4,100 USD or 1,250 to 3,750 EUR), certified document translation if needed (1,000 to 3,000 AED or 275 to 820 USD or 250 to 750 EUR), and a property valuation for cash buyers who want peace of mind about the price they are paying.
Don't lose money on your property in Dubai
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What taxes do I pay when buying a property in Dubai in 2026?
What is the property transfer tax rate in Dubai in 2026?
As of early 2026, the property transfer tax equivalent in Dubai is the DLD registration fee of 4% of the sale value, which the official DLD website shows as a 2% seller and 2% buyer split, though in practice the full 4% is often paid by the buyer depending on what you negotiate in your contract.
There are no extra transfer taxes for foreigners buying property in Dubai, meaning you pay the same 4% DLD registration fee whether you are a UAE resident, a GCC national, or a foreign investor from anywhere else in the world.
Buyers typically do not pay VAT on residential property purchases in Dubai because resale residential properties are VAT-exempt, while new residential properties sold within three years of completion by a developer qualify for zero-rated VAT (0%) under UAE federal tax rules.
Dubai does not have a separate stamp duty like the UK or Australia, so the main purchase levy you pay is the 4% DLD registration fee at transfer, which covers the function that stamp duty serves in other countries.
Are there tax exemptions or reduced rates for first-time buyers in Dubai?
There is no general first-time buyer tax discount or exemption on the core 4% DLD registration fee in Dubai in 2026, meaning first-time buyers pay the same rates as repeat investors unless a specific developer promotion or government initiative happens to apply at the time of purchase.
If you buy property through a company instead of as an individual in Dubai, you still pay the standard 4% DLD transfer fee at registration, but your ongoing tax situation becomes more complex because UAE corporate tax rules may apply to rental income or gains depending on your structure and activity level.
The main tax difference between new-build and resale property in Dubai relates to VAT rather than transfer fees: new residential units (first supply within three years) can be zero-rated for VAT purposes, while subsequent sales of residential property are generally VAT-exempt, though the 4% DLD fee applies equally to both.
Since there is no first-time buyer exemption program in Dubai's standard fee structure, there are no specific documentation requirements to meet, though you should always verify with DLD or a licensed conveyancer whether any targeted initiatives exist at your time of purchase.
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.
Which professional fees will I pay as a buyer in Dubai in 2026?
How much does a notary or conveyancing lawyer cost in Dubai in 2026?
As of early 2026, conveyancing or legal support for a residential property purchase in Dubai typically costs between 5,000 and 15,000 AED (1,400 to 4,100 USD or 1,250 to 3,750 EUR), with the exact amount depending on the complexity of your transaction, whether you need NOC coordination, and which provider you choose.
Conveyancing fees in Dubai are usually charged as a flat rate rather than a percentage of the property price, though some providers offer tiered pricing based on transaction value or bundled services that include document handling, NOC coordination, and transfer attendance.
Translation and interpreter services for foreign buyers in Dubai typically cost between 200 and 600 AED (55 to 165 USD or 50 to 150 EUR) per simple document, while more complex items like powers of attorney packages can run 800 to 2,000 AED (220 to 545 USD or 200 to 500 EUR) or more depending on urgency and certification requirements.
Most individual buyers purchasing residential property personally in Dubai do not need a tax advisor, but if you are buying through a company structure or planning short-term rental operations, you should budget 1,500 to 5,000 AED (410 to 1,400 USD or 375 to 1,250 EUR) or more for basic tax advisory depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Dubai.
What's the typical real estate agent fee in Dubai in 2026?
As of early 2026, the typical real estate agent commission in Dubai for resale properties is around 2% of the purchase price plus 5% VAT on the commission, which on a 2 million AED property works out to roughly 42,000 AED (11,500 USD or 10,500 EUR) including VAT.
In Dubai's resale market, the buyer typically pays the agent commission rather than the seller, though for off-plan purchases from developers, the developer usually pays the commission directly, meaning buyers often face no separate agent fee on new projects.
The realistic range for agent fees in Dubai spans from 0% (off-plan or direct deals) to about 2.5% on the high end for premium brokerage services, with the standard 2% being most common for resale transactions in areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah.
How much do legal checks cost (title, liens, permits) in Dubai?
Legal checks for title verification, liens, and permits in Dubai are largely integrated into the DLD trustee transfer process, but buyers who want extra peace of mind typically pay 5,000 to 15,000 AED (1,400 to 4,100 USD or 1,250 to 3,750 EUR) for comprehensive conveyancing support that includes these verifications.
Property valuation fees in Dubai vary depending on the provider, but for mortgage buyers the bank typically mandates a valuation through their approved panel at costs ranging from 2,500 to 3,500 AED (680 to 950 USD or 625 to 875 EUR), while cash buyers can optionally commission independent valuations at similar rates.
The most critical legal check you should never skip in Dubai is verifying that the seller has a valid No Objection Certificate (NOC) from the developer or building management, because without this clearance the DLD cannot process the transfer and you could face costly delays or disputes.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Dubai.
Get the full checklist for your due diligence in Dubai
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What hidden or surprise costs should I watch for in Dubai right now?
What are the most common unexpected fees buyers discover in Dubai?
The most common unexpected fees buyers discover in Dubai include annual service charges (which vary enormously by building and can reach 15 to 30 AED per square foot in premium towers), developer or building management NOC fees (often 500 to 5,000 AED), utility deposits and move-in charges for DEWA and chiller services, and access card or parking registration fees that buildings charge separately.
You generally cannot inherit unpaid property taxes in Dubai because the emirate does not have annual property taxes in the traditional sense, but you can inherit problems like unpaid service charges, unresolved developer NOCs, outstanding maintenance fees, or disputes with existing tenants that the seller did not disclose.
Scams involving fake listings or fake fees do occur in Dubai, and you can avoid them by only dealing with RERA-registered agents, never paying reservation deposits to personal bank accounts, always verifying property ownership through DLD's official systems, and confirming that any administrative fees match the official DLD fee schedule.
The fees usually not disclosed upfront by sellers or agents in Dubai include the exact service charge level for the building, any pending special assessments or major maintenance projects, NOC or admin fees charged at transfer time, and the full scope of mortgage-related costs if you are financing the purchase.
In our property pack covering the property buying process in Dubai, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Dubai?
Extra fees when buying a tenanted property in Dubai can include Ejari registration transfer costs (around 220 AED or 60 USD or 55 EUR), potential settlement payments if you negotiate early tenant departure, and legal or admin fees if the tenancy situation is complicated or disputed.
When you buy a tenanted property in Dubai, you legally inherit the existing tenancy contract under UAE rental law, which means you must honor the lease terms, cannot raise rent outside the RERA rental index guidelines, and must respect the tenant's rights until the contract expires.
Terminating an existing lease immediately after purchase is generally not possible in Dubai unless the tenant agrees, the lease has a break clause, or you meet specific legal grounds for eviction (such as personal use with 12 months notice), so you should factor this timeline into your investment plans.
A sitting tenant typically affects the property's market value in Dubai by making it more attractive to investors seeking immediate rental income but less attractive to buyers who want to move in themselves, which can give you negotiating leverage if you are an investor while potentially limiting your buyer pool if you plan to resell quickly.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Dubai.
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Dubai?
Which closing costs are negotiable in Dubai right now?
The negotiable closing costs in Dubai include who pays the 4% DLD registration fee (the official split is 2% each but contracts often shift this), the buyer agent commission rate and structure, and the scope and pricing of conveyancing services.
The closing costs that are fixed by law and cannot be negotiated in Dubai include the 4% total DLD registration fee rate itself (you can negotiate who pays but not the amount), the title deed issuance fee of 250 AED, the property map fee of 250 AED, and the knowledge and innovation fees that DLD charges on every transfer.
Buyers in Dubai can realistically achieve discounts of 1% to 2% of the property price by successfully negotiating a 2%/2% DLD fee split with the seller, reducing agent commission by 0.25% to 0.5%, or securing bundled conveyancing services at a lower flat rate.
Can I ask the seller to cover some closing costs in Dubai?
The likelihood of a seller agreeing to cover some closing costs in Dubai is moderate and depends heavily on market conditions, with sellers being more flexible in slower markets or when a property has been listed for a long time.
The specific closing costs sellers are most commonly willing to cover in Dubai include their official 2% share of the DLD registration fee (which many buyers end up paying by default), NOC fees from the developer, and sometimes a portion of the agent commission if they are motivated to close quickly.
Sellers in Dubai are more likely to accept covering closing costs when the market is softer, when the property has been listed for over 90 days without offers, when you are making a strong cash offer with a quick closing timeline, or when comparable units in the same building are priced lower.
Is price bargaining common in Dubai in 2026?
As of early 2026, price bargaining is common and expected in Dubai's resale property market, with most sellers pricing their properties with some negotiation room built in, especially in established communities like Jumeirah Lake Towers, Business Bay, and Dubai Silicon Oasis.
Buyers in Dubai typically negotiate between 4% and 7% below the asking price on resale properties, which on a 2 million AED listing could mean savings of 80,000 to 140,000 AED (22,000 to 38,000 USD or 20,000 to 35,000 EUR), though off-plan discounts usually come as payment plan incentives or fee waivers rather than headline price cuts.
Don't sign a document you don't understand in Dubai
Buying a property over there? We have reviewed all the documents you need to know. Stay out of trouble - grab our comprehensive guide.
What monthly, quarterly or annual costs will I pay as an owner in Dubai?
What's the realistic monthly owner budget in Dubai right now?
A realistic monthly owner budget for a typical apartment in Dubai ranges from 1,500 to 4,000 AED (410 to 1,090 USD or 375 to 1,000 EUR) depending on the building, size, and location, covering service charges, utilities, and the housing fee that appears on your DEWA bill.
The main recurring expense categories that make up this monthly budget in Dubai are service charges (paid annually but often budgeted monthly), DEWA utilities (electricity and water), district cooling or chiller fees if applicable, and the municipal housing fee collected through your DEWA bill.
The realistic low-to-high range for monthly owner costs in Dubai spans from about 1,000 AED (275 USD or 250 EUR) for a small studio in an older building with minimal amenities to 8,000 AED (2,180 USD or 2,000 EUR) or more for a large villa or premium tower apartment with extensive facilities and high cooling costs.
The monthly cost that varies the most in Dubai is service charges, because they depend entirely on the building's amenities, age, management efficiency, and any special assessments for major repairs, with premium buildings in areas like Palm Jumeirah or Downtown Dubai charging significantly more per square foot than mid-range buildings in Jumeirah Village Circle or Dubai Sports City.
You can see how this budget affect your gross and rental yields in Dubai here.
What is the annual property tax amount in Dubai in 2026?
As of early 2026, Dubai does not have an annual property tax in the traditional Western sense, but property owners do pay a municipal housing fee that is collected through their monthly DEWA electricity bill, calculated as approximately 5% of the annual rental value for owner-occupiers.
Since there is no separate annual property tax bill in Dubai, the realistic range depends on the housing fee which varies based on your property's deemed rental value, typically amounting to 2,000 to 8,000 AED (545 to 2,180 USD or 500 to 2,000 EUR) annually for a typical apartment, spread across your monthly DEWA bills.
The housing fee in Dubai is calculated based on the property's annual rental value (as determined by RERA guidelines) rather than a cadastral or market value, with the rate set at 5% of annual rent for residential properties, collected in monthly installments through DEWA.
There are no general exemptions or reductions to the housing fee available for certain property owners in Dubai, as it applies uniformly to all residential properties, though the amount naturally scales with the property's rental value so smaller or less premium units pay less.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UAE. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Dubai in 2026?
What tax rate applies to rental income in Dubai in 2026?
As of early 2026, there is no personal income tax on residential rental income for individual landlords in Dubai, which means if you own an apartment in Downtown Dubai or a villa in Arabian Ranches and rent it out, you keep the rental income without paying income tax to the UAE government.
Since there is no income tax on rental income for individuals in Dubai, the concept of deducting expenses from rental income taxes does not apply in the traditional sense, though you should still track expenses for your own financial management and in case corporate tax rules ever become relevant to your situation.
The effective tax rate on rental income for typical individual landlords in Dubai is 0%, making it one of the most tax-efficient places in the world to own investment property, though corporate tax could apply if your rental activity is structured as a business exceeding certain thresholds.
Foreign property owners pay the same rental income tax rate as UAE residents in Dubai, which is to say they pay nothing on normal residential rental income, though you should check your home country's tax rules as many countries tax their residents on worldwide income including foreign rental earnings.
Do I pay tax on short-term rentals in Dubai in 2026?
As of early 2026, short-term rentals in Dubai involve additional costs beyond the zero income tax that long-term landlords enjoy, including mandatory holiday home permit fees through the Department of Economy and Tourism (DET), Tourism Dirham charges that you collect from guests and remit to authorities, and potentially higher municipal housing fees if assessed on short-term rental income.
Short-term rental income is not taxed differently than long-term rental income at the personal income level in Dubai (both are zero for individuals), but the compliance costs are higher because you must register your property, obtain permits, and handle Tourism Dirham collection, which effectively adds to your operating expenses compared to traditional long-term leasing.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dubai.
Get to know the market before you buy a property in Dubai
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
If I sell later, what taxes and fees will I pay in Dubai in 2026?
What's the total cost of selling as a % of price in Dubai in 2026?
As of early 2026, the total cost of selling a property in Dubai typically ranges from 2.5% to 4.5% of the sale price, which on a 3 million AED property means selling costs of 75,000 to 135,000 AED (20,000 to 37,000 USD or 19,000 to 34,000 EUR).
The realistic low-to-high percentage range for total selling costs in Dubai spans from about 2% (if you sell without an agent and the buyer pays the full DLD fee) to about 5% (if you pay agent commission plus your share of DLD plus NOC and admin costs).
The specific cost categories that make up the total selling cost in Dubai include agent commission (typically around 2% if you use one), your share of the DLD registration fee (officially 2% but often negotiated), NOC fees from the developer, any mortgage early settlement charges if applicable, and minor admin or conveyancing costs.
The single largest contributor to selling expenses in Dubai is usually the agent commission if you use a listing agent, followed closely by the DLD registration fee share, with these two items together often representing 3% to 4% of the sale price.
What capital gains tax applies when selling in Dubai in 2026?
As of early 2026, there is no separate capital gains tax for individual sellers of residential property in Dubai, which means if you bought an apartment in Dubai Marina for 1.5 million AED and sold it for 2.5 million AED, you would not owe the UAE government any tax on your 1 million AED profit.
Since there is no capital gains tax for individuals selling residential property in Dubai, exemptions based on primary residence status or holding period are not applicable, as the entire gain is already untaxed regardless of how long you owned the property or whether you lived in it.
Foreigners do not pay extra taxes or a different capital gains rate when selling property in Dubai because there is no capital gains tax to pay in the first place, making Dubai equally tax-efficient for UAE residents, GCC nationals, and international investors alike.
Capital gain calculation is not relevant for UAE tax purposes when selling residential property in Dubai as an individual, though you may need to calculate and report your gain for tax purposes in your home country if it taxes worldwide capital gains, using your actual purchase price, selling price, and documented improvement costs.
We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Dubai, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Dubai Land Department - Property Sale Registration | Official Dubai government fee schedule for registering property sales. | We used it as the primary source for the 4% DLD registration fee and the 2%/2% buyer-seller split. We also used it to identify all fixed admin, title deed, and map fees. |
| Dubai Land Department - Mortgage Registration | Official DLD page showing mortgage registration fees and trustee charges. | We used it to confirm the 0.25% mortgage registration fee and partner service fees. We used it to build the cost scenarios for buyers using financing. |
| UAE Federal Tax Authority - Real Estate VAT Guide | Official UAE guidance on VAT treatment for residential property. | We used it to explain when residential sales are zero-rated versus exempt. We used it to answer VAT questions with federal-level accuracy. |
| UAE FTA - Real Estate Investment for Natural Persons | Official tax authority guidance on how individuals are taxed on property income. | We used it to explain why individual landlords generally pay no income tax on residential rents. We used it to clarify when corporate tax might apply. |
| Dubai Municipality - Housing Fees Manual | Official Dubai Municipality document on the housing fee mechanism. | We used it to explain that housing fees are collected through DEWA billing. We used it to support the ongoing owner costs section. |
| Dubai Land Department - Service Charge Index | Official DLD tool for checking building service charge rates. | We used it to show that service charges are officially tracked and verifiable. We used it to justify budgeting for this significant ongoing cost. |
| Bayut - Real Estate Commissions Guide | Major UAE property portal with transparent commission market data. | We used it to estimate the typical 2% buyer-side commission on resale transactions. We used it for market practice information, not government fees. |
| Property Finder - Conveyancing Fees | Major UAE property portal providing consistent market cost ranges. | We used it to estimate typical conveyancing costs of 5,000 to 15,000 AED. We used it to separate mandatory government fees from professional services. |
| Engel & Volkers - Conveyancing Fees Dubai | Established global brokerage with reliable Dubai market references. | We used it as an independent check on conveyancing cost ranges. We used it to triangulate estimates rather than relying on a single source. |
| Airbnb - Responsible Hosting in Dubai | Platform guidance that reflects actual DET compliance requirements. | We used it to confirm short-term rental permit and Tourism Dirham requirements. We used it to support the short-term rental section. |
| Dubai DET - Holiday Homes Customer Journey | Official Dubai Department of Economy and Tourism permit documentation. | We used it to estimate holiday home permit fees and compliance costs. We used it as the official reference for short-term rental workflows. |
Get fresh and reliable information about the market in Dubai
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Related blog posts