Buyer Guides · 3 min read
How much does it cost to buy property in Dubai? (fees explained)
The EQT Private Office · RERA-registered brokerage · Published August 3, 2026 · Updated September 24, 2026
On top of the purchase price, buying property in Dubai costs about 6-8% of the property value in one-off fees. The biggest is the 4% Dubai Land Department (DLD) transfer fee. Agency commission adds about 2%, then come registration and trustee fees, plus mortgage fees if you borrow. Dubai has no annual property tax and no stamp duty beyond the DLD fee. The breakdown below ends with a worked example on a AED 2,000,000 apartment.
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 about 2% plus VAT; a registration trustee fee (~AED 4,000) also applies.
- •If you use a mortgage, add about 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
You pay these one-off costs to complete the purchase. As the buyer, you cover the DLD transfer fee, your agency commission and the trustee fee. The seller pays their own agency commission and, in most cases, the 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): AED 500-5,000, normally paid by the seller.
Extra costs if you use a mortgage
A mortgage adds a few bank and registration costs. Non-residents can borrow up to about 50-60% loan-to-value and residents up to 80%, so your deposit will be the largest cheque you write.
- •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 yearly running costs. The main one is the service charge. It is set per square foot, regulated by RERA through the Mollak system, and pays for maintenance and amenities.
Dubai charges no annual property or council tax on residential real estate, and individuals pay no tax on rental income.
- •Service charges: an annual rate per square foot, set building by building.
- •Utilities (DEWA): water and electricity, billed monthly.
- •Housing fee: 5% of the property's annual rental value, charged through DEWA bills (mainly relevant to occupied homes).
- •Property management: 5-10% of rent if you let the property out.
A worked example
Say you buy a ready apartment 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 comes to about AED 4,200.
Your total is roughly AED 126,000, or about 6.3% of the price. Buy the same flat with a mortgage and the bank fee, valuation and 0.25% mortgage registration take the all-in cost closer to 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 you borrow, a mortgage arrangement fee, a valuation and 0.25% mortgage registration.
How much is the Dubai Land Department fee?+
The DLD transfer fee is 4% of the purchase price, plus a small administrative charge. DLD's schedule splits the fee 2% buyer and 2% seller, though in practice buyers commonly pay the full 4% by agreement. It is the largest single transaction cost when you buy property in Dubai.
Do you pay stamp duty or property tax in Dubai?+
No. Dubai has no separate stamp duty beyond the 4% DLD transfer fee and no annual property tax on residential real estate. Owners pay annual service charges for maintenance instead.
Who pays the agency commission in Dubai?+
The buyer pays their agent around 2% plus VAT, and the seller pays their own agent a similar amount. Agree the commission in writing before you proceed.
