Budget roughly 6–8% of the purchase price on top of the price itself. The largest item is the Dubai Land Department (DLD) transfer fee of 4% + AED 580, followed by 2% agency commission + 5% VAT, a trustee registration fee of about AED 4,200, and an AED 250 title deed. If you take a mortgage, add roughly another 1.25% of the loan.
Dubai has no annual property tax, no stamp duty in the European sense, and no capital gains tax — but the one-off transaction costs at purchase are real and often underestimated by overseas buyers. Below is every line item you will actually pay in 2026, who collects it, and a full worked example so there are no surprises at the registration trustee's desk.
The complete fee list (cash buyer)
| Fee | Amount (2026) | Paid to |
|---|---|---|
| DLD transfer fee | 4% of price + AED 580 admin | Dubai Land Department |
| Property registration trustee fee | AED 4,200 + 5% VAT (price ≥ AED 500k) | Registration Trustee office |
| Title deed issuance | AED 250 | Dubai Land Department |
| Agency commission | 2% of price + 5% VAT | Your brokerage |
| NOC fee (resale only) | AED 500 – 5,000+ | Developer |
| Oqood registration (off-plan only) | 4% (collected as DLD registration) | Dubai Land Department |
Source: Dubai Land Department fee schedule, RERA, Q2 2026.
If you take a mortgage, add these
- DLD mortgage registration: 0.25% of the loan amount + AED 290.
- Bank arrangement / processing fee: typically 0.5%–1% of the loan + 5% VAT.
- Property valuation: AED 2,500–3,500 + VAT.
Conveyancing is optional in Dubai but recommended for remote or first-time buyers — expect AED 6,000–10,000 for a firm to manage NOC, transfer, and DLD paperwork end to end.
Worked example: an AED 3,450,000 apartment (cash)
| Item | Calculation | AED |
|---|---|---|
| DLD transfer fee | 4% × 3,450,000 + 580 | 138,580 |
| Agency commission | 2% + 5% VAT | 72,450 |
| Trustee registration | 4,200 + VAT | 4,410 |
| Title deed | fixed | 250 |
| Total fees | ≈ 6.25% of price | 215,690 |
Illustrative. Excludes mortgage costs and developer NOC (resale). Source: Sofia Sands Realty transaction modelling, Q2 2026.
Who actually pays the 4%?
By DLD regulation the 4% transfer fee is technically split 2%/2% between buyer and seller, but market practice in Dubai is that the buyer pays the full 4% unless negotiated otherwise. On off-plan purchases the developer sometimes absorbs the DLD fee as an incentive — always confirm this in writing in the SPA, because "DLD waiver" offers vary by launch.
What buyers most often miss
Three costs catch people out. First, the 5% VAT on the agency commission (not the property — residential resale is VAT-exempt). Second, ongoing service charges of roughly AED 12–25 per sqft per year, billed after handover. Third, on resale, the developer NOC fee, which for some master developers runs to several thousand dirhams. We itemise all of these in writing before you sign — request a full cost sheet from any broker before committing.
Frequently Asked Questions
How much are total fees when buying property in Dubai?
Expect roughly 6–8% of the purchase price in one-off fees for a cash purchase: a 4% DLD transfer fee, 2% agency commission plus 5% VAT, around AED 4,200 trustee registration, and AED 250 title deed. A mortgage adds approximately another 1.25% of the loan. Source: DLD, Q2 2026.
What is the DLD fee in Dubai?
The Dubai Land Department transfer fee is 4% of the property purchase price plus an AED 580 administrative fee. It is the single largest transaction cost. Source: Dubai Land Department, Q2 2026.
Does the buyer or seller pay the 4% DLD fee?
By regulation it is split 2%/2%, but standard Dubai market practice is that the buyer pays the full 4%. On some off-plan launches the developer absorbs it as an incentive — confirm in the SPA. Source: DLD, Q2 2026.
Is there VAT on buying a home in Dubai?
Residential resale property is exempt from VAT. However, 5% VAT applies to the agency commission and to certain professional services such as conveyancing and mortgage arrangement. Source: Federal Tax Authority, Q2 2026.
Are there annual property taxes in Dubai?
No. Dubai has no annual property tax, no capital gains tax, and no income tax on rent. Owners pay annual service charges (roughly AED 12–25 per sqft) and, for end-users, a 5% housing fee on Dubai rentals via the DEWA bill. Source: DLD, Dubai Municipality, Q2 2026.
What extra fees apply when buying off-plan?
Off-plan purchases register through the Oqood system rather than a title deed at first, and the 4% DLD registration still applies. There is no resale NOC fee at first purchase, but developers may charge admin fees. Source: DLD, Q2 2026.
Do I need a lawyer to buy property in Dubai?
It is not legally required, but conveyancing (AED 6,000–10,000) is sensible for remote or first-time buyers to manage the NOC, transfer, and DLD paperwork. Source: Sofia Sands Realty, Q2 2026.
Figures cited reflect Dubai Land Department (DLD), RERA and RAK Properties published schedules and Sofia Sands Realty transaction data as of Q2 2026. Government fees and developer policies change — confirm the current figure for your specific transaction before committing. This page is general information, not individual financial or legal advice.