Buyer Guides · 7 min read
How much does it cost to buy property in Dubai? (fees explained)
The EQT Private Office · RERA-registered brokerage · Published August 1, 2026 · Updated August 3, 2026
Beyond the purchase price, the cost of buying property in Dubai is roughly 6-8% of the property value in one-off fees. The largest is the 4% Dubai Land Department (DLD) transfer fee, followed by around 2% agency commission, plus registration, trustee and (if financing) mortgage fees. There is no annual property tax and no stamp duty beyond the DLD fee. Here is the full breakdown, including a worked example.
Key takeaways
- •Total upfront cost is about 6-8% of the price, on top of the purchase price itself.
- •The largest single fee is the 4% Dubai Land Department (DLD) transfer fee.
- •Agency commission is typically 2% plus VAT; a registration trustee fee (~AED 4,000) also applies.
- •If you use a mortgage, add roughly 1% bank arrangement, a valuation (~AED 3,000) and 0.25% mortgage registration.
- •There is no property tax and no stamp duty beyond the DLD fee, you pay annual service charges instead.
The upfront fees, line by line
These are the one-off costs you pay to complete a purchase. The buyer typically covers the DLD transfer fee, agency commission and trustee fee; the seller usually pays their own agency commission and any developer NOC charge.
- •DLD transfer fee: 4% of the purchase price (plus a small admin charge).
- •Agency commission: about 2% of the price, plus 5% VAT on the commission.
- •Registration trustee fee: around AED 4,000 for properties above AED 500,000, plus VAT.
- •Title deed issuance: a few hundred dirhams.
- •Developer NOC (No Objection Certificate): typically AED 500-5,000, usually paid by the seller.
Extra costs if you use a mortgage
Financing adds a handful of bank and registration costs. Non-residents can usually borrow up to about 50-60% loan-to-value and residents up to 80%, so the deposit is your largest single outlay.
- •Bank arrangement fee: around 1% of the loan amount.
- •Property valuation: roughly AED 2,500-3,500.
- •Mortgage registration at the DLD: 0.25% of the loan amount, plus a small admin fee.
- •Life and property insurance: modest annual premiums required by most lenders.
Ongoing costs of ownership
Once you own, budget for annual running costs. The main one is the service charge, set per square foot and regulated by RERA through the Mollak system, which funds maintenance and amenities.
Crucially, there is no annual property or council tax on residential real estate in Dubai, and no tax on rental income for individuals.
- •Service charges: an annual rate per square foot, varying by building and community.
- •Utilities (DEWA): water and electricity, billed monthly.
- •Housing fee: 5% of the property's annual rental value, applied via DEWA bills (mainly relevant to occupied homes).
- •Property management: typically 5-10% of rent if you let the property out.
A worked example
Take a ready apartment bought for AED 2,000,000 in cash. The DLD fee is AED 80,000 (4%), agency commission is AED 40,000 (2%) plus AED 2,000 VAT, and the trustee fee is about AED 4,200.
That totals roughly AED 126,000, or about 6.3% of the price. With a mortgage, add the bank, valuation and 0.25% mortgage-registration fees, pushing the all-in cost nearer 7-8%.
Frequently asked
What are the total fees when buying property in Dubai?+
Expect around 6-8% of the price in one-off fees: a 4% Dubai Land Department transfer fee, about 2% agency commission plus VAT, registration and trustee fees, and, if financing, mortgage arrangement, valuation and 0.25% mortgage-registration fees.
How much is the Dubai Land Department fee?+
The DLD transfer fee is 4% of the purchase price, plus a small administrative charge. It is the largest single transaction cost when buying property in Dubai.
Do you pay stamp duty or property tax in Dubai?+
There is no separate stamp duty beyond the 4% DLD transfer fee, and no annual property tax on residential real estate in Dubai. Owners pay annual service charges for maintenance instead.
Who pays the agency commission in Dubai?+
Typically the buyer pays around 2% commission plus VAT to their agent, and the seller pays their own agent a similar amount. This should be agreed clearly in writing before proceeding.
