Buying costs for property in Dubai: what you need to budget for
On top of the purchase price, Dubai charges fixed fees: for the Dubai Land Department, the Registration Trustee, the documents and the agent. The good news: every item is clearly regulated and can be calculated precisely in advance. Here you get them all at a glance – with a worked example and official sources.
In short: For a ready apartment, around 6.5% comes on top of the purchase price, slightly more for smaller apartments. At AED 1.5 million, that is around AED 96,000. To be safe, budget 7% – from your own funds, because these costs cannot be financed.
The four items at a glance
Many countries charge a property transfer tax or stamp duty on purchases. Dubai doesn’t. Instead, four items are due on purchase: three to the authorities, one to the agent.
1. Dubai Land Department registration fee: 4%
This is the biggest item. The Dubai Land Department (DLD) is Dubai’s land registry and charges 4% of the purchase price for registration. Officially, buyer and seller each pay 2%. In practice, the buyer usually pays the full 4%.
2. Registration Trustee fee
The transfer is registered at a DLD Registration Trustee Office. For prices from AED 500,000 this costs AED 4,000 plus 5% VAT; below that, AED 2,000 plus VAT.
3. Documents and fees
The title deed costs AED 250, the site plan another AED 250. On top come AED 10 each in Knowledge and Innovation fees. AED 520 in total – hardly worth mentioning, but included for completeness.
4. Agent commission
The amount isn’t fixed by law. 2% plus 5% VAT is customary. At REAL DUBAI, it is exactly that 2% plus VAT for ready properties – set out in the brokerage agreement before we show you the first apartment. For off-plan, you pay us nothing; the developer pays the commission. More on our page Real Estate Agent in Dubai.
Worked example for two prices
This is what it looks like in practice – for a smaller and a mid-sized apartment, both ready:
| Item | AED 800,000 | AED 1.5 million |
|---|---|---|
| DLD registration fee (4%) | AED 32,000 | AED 60,000 |
| Registration Trustee (incl. VAT) | AED 4,200 | AED 4,200 |
| Title deed, site plan, fees | AED 520 | AED 520 |
| Agent commission (2% + 5% VAT) | AED 16,800 | AED 31,500 |
| Total | AED 53,520 (≈ 6.7%) | AED 96,220 (≈ 6.4%) |
For smaller apartments the percentage is slightly higher, because the fixed Trustee and document fees weigh more. The more expensive the property, the closer you get to 6%.
Buying costs for off-plan
The 4% registration fee also applies when buying from a developer – and not at handover, but as soon as the purchase is registered in the interim register, known as Oqood. There is no agent commission, because the developer pays it. So budget around 4% plus smaller administration fees.
Which fees apply in your case is set out in the contract with the developer (Sale and Purchase Agreement). Ask for a complete list before you sign.
More about the process and how your money is protected in our guide Buying off-plan in Dubai.
What financing adds
If you finance through a bank, the mortgage is also registered with the DLD. That costs 0.25% of the loan amount plus fees.
How much a bank in Dubai will finance at all depends on whether you live in the UAE and whether it is your first home. You’ll find the limits in our FAQ on financing.
Running costs as an owner
After the purchase, you pay annual service charges for common areas and maintenance. The regulator RERA must approve them in advance, and they are allocated according to the size of your unit. You can find the approved rates for each project in the DLD Service Charge Index.
There is no annual property tax. Instead, Dubai charges a housing fee of 5% of the annual rental value, paid monthly via the electricity and water bill. It is paid by whoever lives in the property: the tenant if you rent it out, you if you live there yourself.
If you rent out, every tenancy contract must be registered in the Ejari system. Via the Dubai REST app this costs AED 177.75.
Budget checklist
To avoid surprises when you buy, plan like this:
- purchase price of the property
- plus 4% registration fee for the Dubai Land Department
- plus around AED 4,700 for the Trustee, title deed and fees
- plus agent commission for ready properties (usually 2% plus VAT)
- with financing, plus 0.25% of the loan amount for the mortgage registration
- a reserve for furnishing and the first service charges
Rule of thumb: budget around 7% of the purchase price on top, from your own funds. If you end up at 6.5%, you have room for the first furniture.
We’ll calculate it for you
Send us the apartment you’re interested in or your price range. You’ll get a complete breakdown of all buying costs before you commit.
FAQ
Who pays the 4% registration fee?
Officially, buyer and seller split the fee equally. In practice, the buyer usually pays the full 4%.
Can I finance the buying costs?
No. Since February 2025, banks may no longer finance the DLD fee and the agent commission. You pay these costs from your own funds.
How high are the buying costs for off-plan?
Around 4% for the Dubai Land Department plus smaller administration fees. With us, you pay no agent commission; the developer covers it.
Is there a property tax in Dubai?
No. But there is a housing fee of 5% of the annual rental value. If you rent out, the tenant pays it; if you live there yourself, you do.
Sources
- DLD: Property Sale Registration
- DLD: Request to Register the Initial Sale
- DLD: Mortgage Registration
- Brokers Bylaw No. 85 of 2006, Article 27
- Property Finder: DLD fees (July 2026)
- The National, 25 January 2025
- Law No. 6 of 2019 on jointly owned property, Article 27
- DLD: Service Charge Index
- PwC Tax Summaries: UAE, Other taxes
- DLD: Ejari registration
Updated: October 2026. This guide summarises the legal position in general terms and does not replace legal or tax advice in individual cases.
