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Everything you need to know before buying real estate is included in our United Arab Emirates Property Pack
Understanding all the property taxes and fees in the United Arab Emirates is crucial for making informed real estate investment decisions. The UAE property market involves various costs beyond the purchase price, including transfer fees, registration charges, and ongoing expenses that vary by emirate and property type.
If you want to go deeper, you can check our pack of documents related to the real estate market in the United Arab Emirates, based on reliable facts and data, not opinions or rumors.
Property buyers in the UAE face a 4% Dubai Land Department (DLD) transfer fee, plus various admin charges, broker commissions of 2%, and ongoing service charges of AED 10-30 per sq ft annually.
Additional costs include mortgage registration fees of 0.25% of loan amount, utility connection deposits of AED 2,000-4,000, and annual housing fees of 5% of rental value.
| Fee Type | Amount/Rate | Who Pays |
|---|---|---|
| DLD Transfer Fee | 4% of purchase price | Buyer (negotiable) |
| Broker Commission | 2% + 5% VAT | Buyer |
| Trustee Office Fee | AED 2,100-4,200 | Buyer |
| Mortgage Registration | 0.25% of loan amount | Buyer |
| Annual Service Charge | AED 10-30 per sq ft | Owner |
| Housing Fee | 5% of annual rent | Tenant/Owner |
| DEWA Connection | AED 140 + deposit | Owner/Tenant |
Which emirate are you buying in and what type of property ownership?
The emirate where you purchase your property significantly affects the fees and taxes you'll pay.
Dubai dominates the UAE property market with the most comprehensive fee structure. As of September 2025, Dubai requires a 4% Dubai Land Department (DLD) transfer fee regardless of whether you're buying residential freehold, leasehold, or commercial property. Abu Dhabi follows similar patterns but may have different municipal charges.
Freehold properties allow full ownership for foreigners in designated areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah. Leasehold properties typically involve 99-year agreements with annual ground rent obligations. Commercial properties attract the same 4% DLD fee but include 5% VAT on new units and rental agreements.
Sharjah, Ajman, and other northern emirates have their own land department fees, usually ranging from 2% to 4% of the purchase price. Each emirate's trustee office charges vary, so confirm specific rates with local authorities before proceeding.
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What is your agreed purchase price in AED?
Your purchase price in AED determines all percentage-based fees throughout the transaction.
For a property priced at AED 2,000,000, you'll pay AED 80,000 in DLD transfer fees (4%) plus AED 40,000 in broker commission (2%). A AED 1,000,000 property costs AED 40,000 in transfer fees and AED 20,000 in commission.
The agreed price must be stated clearly in your Sales and Purchase Agreement (SPA) as this becomes the basis for all calculations. The DLD uses this amount for their 4% fee calculation, regardless of any side agreements or furniture packages included separately.
Properties under AED 500,000 pay AED 2,100 in trustee office fees (including VAT), while properties above this threshold pay AED 4,200. Mortgage registration fees equal 0.25% of your loan amount, so a 70% mortgage on a AED 2,000,000 property costs AED 3,500 plus AED 290 admin fee.
What are the exact property transfer and registration fees?
Dubai's property transfer fees are standardized across all property types as of September 2025.
| Fee Type | Amount | Who Pays |
|---|---|---|
| DLD Transfer Fee | 4% of purchase price | Buyer (negotiable) |
| DLD Admin Fee | AED 540 fixed | Buyer |
| Trustee Office Fee (under AED 500K) | AED 2,100 (incl. VAT) | Buyer |
| Trustee Office Fee (over AED 500K) | AED 4,200 (incl. VAT) | Buyer |
| Knowledge Fee | AED 10 | Buyer |
| Innovation Fee | AED 10 | Buyer |
The 4% DLD fee applies uniformly whether you're purchasing residential freehold, leasehold, or commercial property. Your Sales and Purchase Agreement should specify who pays these fees, though buyers typically bear the full cost. Some sellers may agree to split the 4% transfer fee, but this requires explicit mention in the contract.
These fees are payable at the time of title transfer at the Dubai Land Department or designated trustee offices. Payment methods include certified cheques, bank transfers, or the DLD's online portal for smaller amounts.
What are the land department and trustee office fees for title registration?
Title deed issuance and off-plan registration involve specific charges beyond the standard transfer fees.
For completed properties, the trustee office fee covers title deed processing and ranges from AED 2,100 to AED 4,200 depending on your property value. Properties below AED 500,000 pay the lower amount, while higher-value properties pay AED 4,200 including 5% VAT.
Off-plan properties require Oqood registration, which costs AED 1,040 as a standard fee. However, some developers may charge up to 4% of the purchase price for Oqood, so verify this amount in your reservation agreement. The Oqood serves as your interim title document until project completion and final title deed issuance.
Knowledge and innovation fees of AED 10 each support Dubai's smart city initiatives and apply to all property transactions. These minimal charges fund technology development and digital transformation projects within the DLD system.
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What developer charges apply to off-plan purchases?
Off-plan properties involve additional developer charges beyond standard government fees.
At booking, you'll typically pay a reservation fee (usually 10% of purchase price) plus the AED 1,040 Oqood registration fee. Some developers charge their own Oqood fee of up to 4% of the purchase price, which should be clearly stated in your reservation agreement.
Upon handover, expect to pay a No Objection Certificate (NOC) fee ranging from AED 500 to AED 5,000 depending on the developer and project type. This certificate is essential for future transfers or sales and confirms all developer obligations are met.
Handover charges may include final inspection fees, snagging correction costs, and administrative charges. Premium developments often charge AED 2,000 to AED 10,000 for comprehensive handover services. Utility connection fees for DEWA, telecommunications, and gas are typically collected at handover, ranging from AED 500 to AED 1,500 total.
Some developers impose annual service charge deposits equivalent to 6-12 months of estimated charges, refundable against actual usage. Verify all charges in your SPA to avoid surprise costs at handover.
What are the broker and agent commission rates?
Real estate agent commissions in the UAE follow standardized market practices as of September 2025.
The standard commission rate is 2% of the property purchase price, typically paid by the buyer. On a AED 2,000,000 property, this equals AED 40,000 in commission. Most agencies don't impose minimum commission amounts, but luxury specialists may require minimums of AED 25,000 to AED 50,000.
5% VAT applies to all real estate commission payments, so the total cost becomes 2.1% of the purchase price. For the AED 2,000,000 example, you'd pay AED 42,000 including VAT. This VAT is collected by the agent and remitted to the Federal Tax Authority.
Some buyers negotiate commission-sharing arrangements where the seller contributes 1% and the buyer pays 1%, but this requires agreement from all parties. International buyers often face higher effective rates due to currency conversion fees and international transfer charges.
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What mortgage-related costs should you expect?
Mortgage financing involves several fees beyond your monthly payments.
Mortgage registration with the Dubai Land Department costs 0.25% of your loan amount plus AED 290 in administrative fees. For a AED 1,400,000 mortgage (70% of AED 2,000,000), you'll pay AED 3,500 plus AED 290, totaling AED 3,790.
Bank processing fees typically range from 0.5% to 1% of the loan amount, varying by lender and your credit profile. Emirates NBD, ADCB, and FAB commonly charge 0.75% to 1% as processing fees. Property valuation costs AED 2,500 to AED 4,000, usually paid upfront to the bank's approved valuers.
Early settlement penalties often equal 1% of the outstanding loan balance, though some banks cap this at AED 10,000 to AED 25,000. Review your loan agreement carefully as prepayment terms vary significantly between lenders.
Mortgage life insurance premiums may be mandatory, typically costing 0.5% to 0.8% of the loan amount annually. Property insurance is required by all lenders, adding AED 1,000 to AED 3,000 annually depending on property value and coverage.
What are the annual service charges and community fees?
Ongoing property ownership costs vary significantly by location and property type.
Community service charges range from AED 10 to AED 30 per square foot annually. A 1,000 sq ft apartment might cost AED 15,000 to AED 25,000 per year for basic services including security, cleaning, landscaping, and common area maintenance. Luxury developments in Palm Jumeirah or Downtown Dubai typically charge AED 25 to AED 35 per sq ft.
Master community fees apply to developments with multiple sub-communities, adding AED 2 to AED 8 per sq ft annually. Areas like Arabian Ranches, Dubai Marina, and JLT impose these additional charges for shared amenities and infrastructure maintenance.
District cooling charges for air conditioning vary by provider and usage but typically cost AED 8 to AED 15 per sq ft annually in communities using centralized cooling systems. This charge is separate from your DEWA electricity bill and covers chilled water supply to your unit.
Building insurance is usually included in service charges but may be billed separately at AED 500 to AED 2,000 annually depending on property value and coverage limits. Leasehold properties may include annual ground rent of AED 1,000 to AED 5,000.
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What municipal and government recurring charges apply?
Municipal charges are emirate-specific and depend on whether you occupy or rent your property.
Dubai's housing fee equals 5% of annual rent for tenants or 5% of estimated rental value for owner-occupiers. This fee is collected monthly through your DEWA bill and funds municipal services. For a property with AED 100,000 annual rental value, you'll pay AED 5,000 yearly or about AED 417 monthly.
Ejari registration costs AED 120 to AED 215 annually if you rent out your property. This mandatory tenancy contract registration legitimizes your lease agreement and is required for tenant visa applications. The fee varies based on contract value and duration.
Tawtheeq registration in Abu Dhabi serves the same purpose as Ejari and costs similar amounts. Other emirates have their own tenancy registration systems with fees ranging from AED 100 to AED 300 annually.
Waste collection fees are typically included in municipal charges collected via utility bills. Some private communities may impose separate waste management fees of AED 200 to AED 500 annually for enhanced services like recycling programs.
What utility connection fees and deposits are required?
Utility connections involve both one-time setup fees and refundable security deposits.
DEWA connection costs AED 140 total, comprising AED 100 for electricity, AED 10 for water, AED 10 for administration, and AED 20 for knowledge and innovation fees. Security deposits range from AED 2,000 for apartments to AED 4,000 for villas, refundable when you terminate service.
Telecommunications setup with Du or Etisalat costs approximately AED 200 for basic internet and landline services. Premium packages or fiber connections may cost AED 300 to AED 500 including installation. Most providers don't require deposits for individual customers.
Gas connection fees vary by supplier but typically cost AED 200 to AED 300 for initial setup. If using gas cylinders, expect to pay AED 100 to AED 150 deposits per cylinder. Piped gas connections may require higher deposits of AED 500 to AED 1,000.
Monthly utility charges depend on usage but expect AED 300 to AED 800 for electricity and water in a typical apartment, plus AED 100 to AED 400 for telecommunications depending on your package selection.
What fees apply when selling or transferring property later?
Exit costs mirror many purchase expenses but with some variations.
The Dubai Land Department charges the same 4% transfer fee on your sale price, creating significant transaction costs. Selling a property for AED 2,500,000 incurs AED 100,000 in DLD fees. Administrative and trustee office fees remain constant at AED 540 and AED 2,100 to AED 4,200 respectively.
Real estate agent commission for sales typically equals 2% plus 5% VAT, identical to purchase transactions. Most sellers pay this commission, though it's negotiable. NOC fees from developers range from AED 500 to AED 5,000 depending on the project and any outstanding obligations.
Mortgage release costs approximately AED 1,290 to deregister your loan from the DLD records. Banks may impose additional discharge fees of AED 500 to AED 2,000 for loan closure administrative work.
Individual property owners face no capital gains tax in the UAE. However, properties held through companies may be subject to corporate tax at 9% on profits above AED 375,000 annually. Consult tax advisors for company ownership implications.
What exemptions and special rules might affect you?
Several categories of buyers benefit from reduced fees or special arrangements.
UAE nationals may qualify for reduced mortgage down payment requirements (as low as 20% versus 25% for expatriates) and preferential interest rates from local banks. However, the 4% DLD transfer fee applies universally regardless of nationality.
First-time buyer programs occasionally offer reduced processing fees or government-backed financing options, but these vary by emirate and are subject to availability. Monitor announcements from local governments for temporary incentives.
Gift transfers between close relatives may qualify for reduced DLD fees, typically 2% instead of 4%, subject to approval and proof of relationship. This applies to spouse-to-spouse transfers and parent-to-child transactions.
Commercial property purchases incur 5% VAT on new units and rental agreements. Free zone property ownership may allow 100% foreign ownership with additional compliance requirements and potential service charges.
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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 all property taxes and fees in the UAE helps you make informed investment decisions and budget accurately for your purchase.
The total cost of buying property typically adds 8-10% to your purchase price when including all fees, commissions, and initial setup costs.
Sources
- Homeland Real Estate - Dubai Property Transfer Fee Guide 2025
- Driven Properties - Property Service Charges Dubai
- Million Plus - UAE Mortgage Registration Fee
- Grovy - Property Service Charges Dubai DLD Fees 2025
- MAK Developers - Dubai Municipality Housing Fee Guide
- Provident Estate - Set Up Utilities in Dubai
- Dubizzle - DLD Registration Fees Payment Methods
- Keltand Co Realty - What is Oqood in Dubai
- FP Property - Hidden Costs of Buying Property in Dubai
- Seven Lands - Buying Property Dubai Fees Off-Plan Projects