Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack
Everything you need to know before buying real estate is included in our United Arab Emirates Property Pack
Buying property in the UAE as a foreigner in 2026 means navigating a fee structure that looks very different from most Western markets, with no annual property tax but significant upfront transaction costs.
We constantly update this blog post with the latest regulations, pricing data, and market insights so you always have fresh information.
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 the UAE.
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
Overall, how much extra should I budget on top of the purchase price in the UAE in 2026?
How much are total buyer closing costs in the UAE in 2026?
As of early 2026, the estimated total buyer closing costs in the UAE typically range from 6% to 10% of the purchase price for cash buyers, which translates to AED 60,000 to AED 100,000 (approximately USD 16,000 to USD 27,000 or EUR 15,000 to EUR 25,000) on a one million dirham property.
The minimum extra budget possible in the UAE when keeping expenses to the bare legal minimum is around 4% to 5%, which would be roughly AED 40,000 to AED 50,000 (USD 11,000 to USD 14,000 or EUR 10,000 to EUR 12,500) on a one million dirham property, but this assumes you buy off-plan with no agent commission and pay cash.
The maximum extra budget buyers should realistically plan for closing costs in the UAE is 12% to 13%, reaching AED 120,000 to AED 130,000 (USD 33,000 to USD 35,000 or EUR 30,000 to EUR 32,500) on a one million dirham property, especially when using a mortgage and paying full agent fees.
The main factors that determine whether your closing costs fall at the low end or high end in the UAE include: whether you buy in Dubai (4% transfer fee) or Abu Dhabi (2% transfer fee), whether you purchase off-plan (often 0% buyer agent fee) or resale (typically 2% agent commission), and whether you finance with a mortgage (adding 0.1% to 0.25% mortgage registration plus bank fees).
What's the usual total % of fees and taxes over the purchase price in the UAE?
The estimated usual total percentage of fees and taxes over the purchase price in the UAE in 2026 is around 7% to 9% for a typical cash purchase and 9% to 12% for a typical mortgage purchase.
The realistic low-to-high percentage range that covers most standard property transactions in the UAE spans from 4% (minimal off-plan cash purchase in Abu Dhabi) to 13% (full-service resale mortgage purchase in Dubai).
Of that total percentage in the UAE, the government transfer and registration fees typically account for 4% to 5% in Dubai or 2% to 3% in Abu Dhabi, while professional service fees such as agent commission, legal review, and mortgage processing make up the remaining 2% to 7%.
By the way, you will find much more detailed data in our property pack covering the real estate market in the UAE.
What costs are always mandatory when buying in the UAE in 2026?
As of early 2026, the costs that are always mandatory when buying property in the UAE include: the land department transfer or registration fee (4% in Dubai, 2% in Abu Dhabi), the title deed issuance fee (around AED 580 in Dubai), administrative charges (AED 430 to AED 580 depending on property type), and the developer's No Objection Certificate fee for resale properties (AED 500 to AED 5,000).
Costs that are optional but highly recommended for buyers in the UAE include independent conveyancing or legal review (especially for off-plan contracts or power of attorney situations), professional property snagging or inspection for completed units, and translation services if you are not comfortable with Arabic documentation.
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What taxes do I pay when buying a property in the UAE in 2026?
What is the property transfer tax rate in the UAE in 2026?
As of early 2026, the property transfer tax rate in the UAE (known as the land department transfer or registration fee) is 4% of the purchase price in Dubai and 2% of the purchase price in Abu Dhabi, with other emirates having similar structures.
There are no extra transfer taxes specifically for foreigners buying property in the UAE, as non-residents and residents pay the same published transfer and registration fees in designated freehold areas.
Buyers in the UAE generally do not pay VAT on most residential property purchases because subsequent supplies of residential buildings are VAT-exempt, though the first supply of a new residential building within three years of completion can be zero-rated (0% VAT) under Federal Tax Authority rules.
The UAE does not have a UK-style stamp duty, so buyers instead pay the land department transfer and registration fees at the time of ownership transfer, calculated as a flat percentage of the purchase price rather than a tiered rate.
Are there tax exemptions or reduced rates for first-time buyers in the UAE?
There is no universal first-time buyer tax exemption or reduced rate in the UAE, as any discounts tend to be emirate-specific policy promotions, developer incentives, or limited-time offers rather than a broad federal relief program.
If you buy property through a company instead of as an individual in the UAE, you may be subject to the 9% Corporate Tax on profits depending on your business structure and activity, whereas individual buyers typically have no income tax on personal property holdings.
There is a tax difference between buying a new-build property versus a resale property in the UAE, mainly through VAT treatment where the first supply of new residential properties within three years may be zero-rated while resale properties are generally VAT-exempt.
Since first-time buyer exemptions are not a standard feature in the UAE, there are no universal documentation requirements, but buyers should always verify any promotional offers directly with developers or through official emirate channels.
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 the UAE in 2026?
How much does a notary or conveyancing lawyer cost in the UAE in 2026?
As of early 2026, the estimated cost for a conveyancing lawyer or legal review in the UAE ranges from AED 7,500 to AED 25,000 (approximately USD 2,000 to USD 6,800 or EUR 1,900 to EUR 6,250), depending on the complexity of your transaction.
Legal fees in the UAE are typically charged as a flat rate rather than a percentage of the property price, though more complex transactions involving off-plan contracts, powers of attorney, or cross-border documentation may command higher fees.
Translation or interpreter services for foreign buyers in the UAE typically cost AED 500 to AED 2,500 (approximately USD 135 to USD 680 or EUR 125 to EUR 625) for session-based interpretation or document translation, with certified or legalized translations costing more.
A tax advisor is not always necessary for simple purchases in the UAE, but if you plan to rent out your property or buy through a company, budgeting AED 2,500 to AED 10,000 (USD 680 to USD 2,700 or EUR 625 to EUR 2,500) for targeted tax guidance can help you navigate Corporate Tax thresholds.
We have a whole part dedicated to these topics in our our real estate pack about the UAE.
What's the typical real estate agent fee in the UAE in 2026?
As of early 2026, the typical real estate agent fee in the UAE is 2% of the purchase price plus 5% VAT on the commission, which works out to roughly 2.1% total, so on a AED 1 million property that would be around AED 21,000 (approximately USD 5,700 or EUR 5,250).
In the UAE, who pays the agent fee depends on the transaction type: for resale purchases, the buyer typically pays their agent (and the seller pays theirs if separate), while for off-plan purchases from developers, the buyer often pays no agent commission directly because developers compensate brokers.
The realistic low-to-high range for agent fees in the UAE spans from 0% (off-plan purchases where the developer pays) to 3% plus VAT (luxury or exclusive listings requiring extra marketing effort), with 2% being the standard regulated rate in Abu Dhabi per the Official Gazette.
How much do legal checks cost (title, liens, permits) in the UAE?
The estimated cost for legal checks including title search, liens verification, and permits review in the UAE is typically AED 1,000 to AED 5,000 (approximately USD 270 to USD 1,360 or EUR 250 to EUR 1,250) when itemized separately, though these are often bundled into your lawyer's fee.
The property valuation fee in the UAE, required if you are using a mortgage, typically costs AED 2,500 to AED 3,500 (approximately USD 680 to USD 950 or EUR 625 to EUR 875) plus 5% VAT, paid to the bank's approved valuer.
The most critical legal check that should never be skipped in the UAE is verifying that all service charges and community fees are fully paid by the seller before transfer, as buyers can inherit unpaid dues that become their legal responsibility.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in the UAE.
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What hidden or surprise costs should I watch for in the UAE right now?
What are the most common unexpected fees buyers discover in the UAE?
The most common unexpected fees buyers discover in the UAE include: trustee or service partner fees at transfer (around AED 4,000 to AED 4,500 in Dubai), developer NOC or admin fees (AED 500 to AED 5,000), mortgage extras like bank processing fees (0.5% to 1% of loan amount), and service charges that vary dramatically by building.
Buyers in the UAE can inherit unpaid service charges or community dues if these are not settled by the seller before transfer, so always request a current statement of account from the building management and make clearance a condition of sale.
Buyers in the UAE do get scammed with fake listings or invented fees, most commonly through non-registered agents requesting deposits to personal accounts or fake "government fees" that do not match official land department receipts, so always verify broker registration and insist on official receipts.
Fees that are usually not disclosed upfront by sellers or agents in the UAE include: the actual service charge level and any upcoming increases, sinking fund contributions, NOC processing timelines and costs, and mortgage-related expenses like valuation and life insurance requirements.
In our property pack covering the property buying process in the UAE, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in the UAE?
The estimated extra fees or costs buyers face if the property has a tenant in the UAE include tenancy transfer coordination costs, potential security deposit transfer administration, and sometimes additional Ejari (Dubai) or Tawtheeq (Abu Dhabi) registration steps, which can add AED 500 to AED 2,000 (approximately USD 135 to USD 545 or EUR 125 to EUR 500).
The legal obligations a buyer inherits when purchasing a tenanted property in the UAE include honoring the existing lease agreement until its expiry, maintaining the same rental terms, and taking over the landlord's responsibilities under the emirate's tenancy laws.
Terminating an existing lease immediately after purchase in the UAE is generally not possible unless specific conditions in the tenancy law are met (such as personal use after proper notice periods), so buyers should plan to honor the lease term or negotiate tenant buyout arrangements.
A sitting tenant in the UAE can affect the property's market value positively (guaranteed rental income for investors) or negatively (less flexibility for owner-occupiers), and it can strengthen a buyer's negotiating position if the seller is motivated to close before dealing with tenant complications.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in the UAE.
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 the UAE?
Which closing costs are negotiable in the UAE right now?
The closing costs that are generally negotiable in the UAE include: agent commission (especially on resale or dual representation), lawyer or conveyancing fees, developer admin or NOC fees (sometimes negotiable on who pays), and who covers service charge arrears.
The closing costs that are fixed by law or regulation and cannot be negotiated in the UAE are: the Dubai Land Department's 4% transfer fee, Abu Dhabi's 2% registration fee, mortgage registration fees (0.25% in Dubai, 0.1% in Abu Dhabi), and title deed issuance fees.
The typical discount or reduction buyers can realistically achieve on negotiable fees in the UAE ranges from 0.25% to 0.5% off agent commission in competitive situations, plus potential savings of AED 2,000 to AED 5,000 by negotiating who pays NOC and admin fees.
Can I ask the seller to cover some closing costs in the UAE?
The estimated likelihood that a seller will agree to cover some closing costs in the UAE depends on market conditions, but in softer market segments or with motivated sellers, there is a reasonable chance of negotiating cost-sharing on items like NOC fees or service charge arrears.
The specific closing costs sellers are most commonly willing to cover in the UAE include: their share of the agent commission, developer NOC or admin fees, outstanding service charges, and sometimes a credit toward the buyer's transfer fee in competitive situations.
Market conditions in the UAE where sellers are more likely to accept covering closing costs include: properties that have been listed for extended periods, distressed sales, off-plan resales where the original buyer wants a quick exit, and periods of oversupply in specific communities.
Is price bargaining common in the UAE in 2026?
As of early 2026, price bargaining is common in the UAE real estate market, though the degree of negotiation varies significantly by micro-market, property condition, seller motivation, and whether you are buying off-plan (less room) or resale (more room).
Buyers in the UAE typically negotiate anywhere from 2% to 5% below the asking price on most resale transactions, which on a AED 2 million property would mean savings of AED 40,000 to AED 100,000 (approximately USD 11,000 to USD 27,000 or EUR 10,000 to EUR 25,000), with motivated sellers sometimes accepting larger reductions.
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What monthly, quarterly or annual costs will I pay as an owner in the UAE?
What's the realistic monthly owner budget in the UAE right now?
The estimated realistic monthly owner budget in the UAE for a typical apartment ranges from AED 1,500 to AED 5,000 (approximately USD 410 to USD 1,360 or EUR 375 to EUR 1,250) depending on location and building quality, covering service charges, utilities, and basic maintenance reserves.
The main recurring expense categories that make up this monthly budget in the UAE include: building or community service charges (often the largest item), DEWA or ADDC utilities (electricity and water), district cooling fees if applicable, home insurance, and a maintenance reserve for appliances and repairs.
The realistic low-to-high range for monthly owner costs in the UAE spans from AED 800 to AED 1,500 (USD 220 to USD 410 or EUR 200 to EUR 375) for a modest apartment in a budget community to AED 5,000 to AED 15,000 (USD 1,360 to USD 4,080 or EUR 1,250 to EUR 3,750) for premium villas in high-end developments.
The monthly cost that tends to vary the most in the UAE is service charges, which can range from AED 7 per square foot annually in budget areas like International City to AED 40 per square foot in premium towers in Downtown Dubai, making location choice a significant ongoing cost factor.
You can see how this budget affect your gross and rental yields in the UAE here.
What is the annual property tax amount in the UAE in 2026?
As of early 2026, there is no annual property tax in the UAE in the traditional sense, which is one of the major attractions for foreign investors compared to countries where annual property taxes can represent 1% to 3% of property value each year.
While there is no annual property tax, the realistic range for annual ongoing costs in the UAE includes service charges of AED 5,000 to AED 50,000 (approximately USD 1,360 to USD 13,600 or EUR 1,250 to EUR 12,500) depending on property size and community, plus municipality-style fees that may appear on utility bills.
Since there is no traditional property tax, there is no cadastral or market value calculation for annual tax purposes in the UAE, with recurring costs instead determined by your building's approved service charge rate per square foot as published in the DLD Service Charge Index for Dubai properties.
Some reductions or exemptions on ongoing costs in the UAE may exist for Emirati nationals in certain programs, but for foreign owners, the standard service charges and utility fees apply equally regardless of residency status or number of properties owned.
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 the UAE in 2026?
What tax rate applies to rental income in the UAE in 2026?
As of early 2026, most individual foreign landlords in the UAE pay no income tax on rental earnings because the UAE does not have a personal income tax, though rental activity can trigger Corporate Tax (9%) if it crosses into business territory under Federal Tax Authority guidelines.
Landlords in the UAE can deduct expenses from rental income if they fall within Corporate Tax scope, with qualifying deductions including maintenance costs, service charges, agent fees, and depreciation, though most amateur landlords with a few properties typically remain outside this threshold.
The realistic effective tax rate for typical individual landlords in the UAE is 0% because most personal rental activity does not meet the criteria for Corporate Tax, but landlords operating at scale or through corporate structures may face the 9% rate on profits exceeding AED 375,000.
Foreign property owners in the UAE do not pay a different rental income tax rate than residents because there is no personal income tax for either group, with the key distinction being whether the activity qualifies as a business under Corporate Tax rules rather than the owner's nationality.
Do I pay tax on short-term rentals in the UAE in 2026?
As of early 2026, short-term rentals in the UAE trigger permit and licensing requirements with associated fees, plus a Tourism Dirham levy of AED 10 to AED 15 per bedroom per night (up to 30 nights per stay) in Dubai, though the rental income itself remains untaxed for most individual owners.
Short-term rental income in the UAE is treated differently than long-term rental income primarily through compliance costs, as holiday home operators must pay annual license fees of AED 1,500 to AED 5,000, collect and remit the Tourism Dirham, and potentially register for VAT if turnover exceeds AED 375,000.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in the UAE.
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If I sell later, what taxes and fees will I pay in the UAE in 2026?
What's the total cost of selling as a % of price in the UAE in 2026?
As of early 2026, the estimated total cost of selling a property in the UAE is typically 2% to 5% of the sale price, depending on who pays the agent commission and whether you have mortgage release fees.
The realistic low-to-high percentage range for total selling costs in the UAE spans from 2% (if the buyer pays their own agent and you have no mortgage) to 5% or more (if you cover both agent commissions plus mortgage early settlement penalties).
The specific cost categories that typically make up seller expenses in the UAE include: agent commission (2% if seller-paid), mortgage release or early settlement fees (up to 1% of remaining balance, capped at AED 10,000), NOC coordination costs, and any outstanding service charge settlements.
The single largest contributor to selling expenses in the UAE is typically the agent commission at 2% of the sale price, which on a AED 2 million property would be AED 40,000 plus VAT, making it worthwhile to negotiate terms or consider selling without an agent if you have a ready buyer.
What capital gains tax applies when selling in the UAE in 2026?
As of early 2026, there is no standalone capital gains tax for individual property sellers in the UAE, which means most foreign investors can retain 100% of their profit when selling residential real estate.
Exemptions to capital gains tax in the UAE are not applicable in the traditional sense because there is no CGT regime for individuals, though sellers whose activity qualifies as a business under Corporate Tax rules could see gains taxed at 9% on profits exceeding AED 375,000.
Foreigners in the UAE do not pay extra taxes or a different capital gains rate when selling property because the absence of personal capital gains tax applies equally to residents and non-residents selling in designated freehold areas.
Since there is no capital gains tax for individuals in the UAE, there is no official calculation methodology, but sellers operating at scale or through corporate structures would calculate gains as sale price minus purchase price and allowable expenses under Corporate Tax rules.
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 the UAE, 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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Dubai Land Department (DLD) | Official government registry for Dubai property transactions. | We used DLD to anchor the 4% transfer fee rate and verify mandatory transaction costs. We also referenced their Service Charge Index for ongoing ownership costs. |
| Federal Tax Authority (FTA) | UAE's official authority for VAT and Corporate Tax rules. | We used FTA guidance to clarify when residential sales are VAT-exempt versus zero-rated. We also used their real estate investment guide for Corporate Tax thresholds. |
| Abu Dhabi Department of Municipalities and Transport | Official registration authority for Abu Dhabi property transfers. | We used DMT to confirm Abu Dhabi's 2% transfer fee and registration processes. We verified that the fee structure applies equally to foreigners and residents. |
| Abu Dhabi Official Gazette | Published legal text for Abu Dhabi real estate fee regulations. | We used Resolution No. 183 of 2017 to confirm the regulated 2% broker commission rate. We also verified developer admin fee caps in Abu Dhabi. |
| Engel & Völkers UAE | Established international brokerage with detailed cost breakdowns. | We used their trustee fee guides to build realistic closing cost ranges. We cross-referenced their buyer cost estimates with official DLD data. |
| Property Finder UAE | Largest property portal in the UAE with market-facing fee guides. | We used their DLD fee breakdowns to verify buyer-facing transaction costs. We also referenced their Abu Dhabi property tax guide for emirate comparisons. |
| KPMG UAE | Major global audit firm with UAE tax expertise. | We used their Corporate Tax analysis to explain when individuals may face taxation. We cross-checked FTA guidance with their practical interpretations. |
| Global Property Guide | International property investment research platform. | We used their UAE buying guide for round-trip transaction cost estimates. We verified their data against official sources for accuracy. |
| Mortgage Finder UAE | Specialist mortgage broker with detailed bank fee data. | We used their fee breakdowns to estimate mortgage-related closing costs. We verified bank processing fees and valuation costs through their guides. |
| Dubai Department of Economy and Tourism | Official regulator for short-term rental licensing in Dubai. | We used their holiday home regulations to explain short-term rental fees. We confirmed Tourism Dirham rates and permit requirements from their official portal. |
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