Buying in Dubai
What are the costs of buying property in Dubai?
Roughly 7% on top of the price.Paid in cash on transfer day, on top of the deposit — and then no property tax.
The short answer
Roughly 7% on top of the price. In McCone Properties’ worked example, a cash buyer of a AED 2,000,000 home pays AED 126,720, 6.3% of the price: the Dubai Land Department’s 4% transfer fee (AED 80,000), 2.1% agency commission, VAT included (AED 42,000) and AED 4,720 for the trustee office and the title deed. With a mortgage it comes to about AED 150,940, 7.5%, adding 0.25% of the loan to register it and the bank’s valuation and arrangement fees. None of it can be borrowed: it is paid in cash on transfer day, on top of the deposit. After that there is no annual property tax — owning costs the building’s service charge and, if you live in the home, a housing fee on the DEWA bill.
By Sam McCone, Managing Partner · Fees as the Land Department’s service pages listed them on 15 Sept 2026
Where the money goes
Every fee on transfer day, at your price
Move the price, or switch to a mortgage. Point at a part to pick it out.
Cash needed on the day: AED 2,126,720 — the price and the fees.
- DLD transfer feeAED 80,000
4% of the price to the Dubai Land Department. Every sale contract puts it on the buyer.
Regulation · 4.00% of the price
- Agency commissionAED 42,000
2.1% of the price, VAT included: 2% to your agent, plus 5% VAT on the commission.
Convention · 2.10% of the price
- Trustee office and title deedAED 4,720
The office that does the transfer, and the new deed in your name. Fixed fees, the same at every office.
Regulation · 0.24% of the price
The Land Department’s fees as its service pages listed them on 15 Sept 2026; commission is the market’s convention, and the bank’s fees vary by lender. For a price of your own, the seller’s side or an off-plan home, the DLD fee calculator itemises every line.
After the keys
What owning costs each year
- Service charge
- AED 10 to 30 a square foot a year for most apartments: set for each building, approved by RERA, paid through Mollak. Service charges →
- Housing fee
- 5% of the home’s yearly rental value, on the DEWA bill, if you live in it. If you let it, your tenant pays it on theirs. The housing fee →
- Insurance
- The building’s own cover is in the service charge; contents are yours to insure. A mortgage adds the life cover the bank requires.
- No property tax
- No annual tax on the home’s value, no tax on the gain when you sell, and no tax on rent an individual earns from it.
Know the figure before you offer.
Questions
Common questions
Who pays the 4% DLD fee — the buyer or the seller?
The buyer. The Land Department’s schedule splits it 2% and 2%, but every sale contract in the Dubai market puts the whole 4% on the buyer, paid at the trustee office on transfer day.
Can I add the buying costs to my mortgage?
No. Banks lend against the price only, so the fees are paid in cash on top of the deposit. On a AED 2,000,000 home with an 80% loan, McCone Properties’ worked example comes to AED 550,940 in cash on the day: the AED 400,000 deposit and AED 150,940 in fees.
What does it cost to buy off-plan in Dubai?
The same 4% to the Land Department, registered on Oqood when you sign with the developer, plus AED 20 in fees — but no trustee office, no title deed until handover, and usually no commission, because the developer pays the agent. Some developers pay the 4% as an incentive; some add an administration fee at booking. A bank lends on off-plan against a 50% deposit.
What does the seller pay when selling property in Dubai?
Far less than the buyer: the developer’s no-objection certificate (set by the developer, commonly AED 500 to AED 5,000), their own agent’s commission if they have one, and AED 1,605 to release a mortgage from the title. The transfer fee is the buyer’s.
The purchase itself, from who can buy where to the deed, is in buying as a foreigner; the same morning from the seller’s chair is selling property in Dubai.
