Question 1

How much are the total costs of buying a property in Dubai?

Accepted Answer

Budget roughly 6-8% of the purchase price on top of the price itself. A cash resale runs about 6-7% (4% DLD fee, ~2% agency commission plus VAT, and a few thousand dirhams in trustee, title-deed and NOC fees). Add a mortgage and it rises to about 7-8% once bank and registration charges are included.

Question 2

What is the DLD transfer fee in Dubai and who actually pays it?

Accepted Answer

The Dubai Land Department charges a transfer fee of 4% of the declared purchase price. Legally it is split 2% buyer / 2% seller under Executive Council Resolution No. 30 of 2013, but by near-universal market convention the buyer pays the full 4%. It is due on the transfer day and is the single largest cost of buying.

Question 3

What is the AED 580 DLD admin fee and other small registration charges?

Accepted Answer

On top of the 4%, the DLD charges a title-deed issuance fee of AED 580 for a ready property (only AED 40 for off-plan), plus minor knowledge and innovation fees of around AED 10 each. These are fixed government charges paid at transfer, unrelated to the property's value, and are separate from the trustee office service fee.

Question 4

How much commission does a real estate agent charge in Dubai?

Accepted Answer

Standard agency commission is 2% of the purchase price plus 5% VAT (about 2.1% effectively). Unlike many countries where only the seller pays, in Dubai the buyer customarily pays the agent's commission on a resale. On off-plan launches the developer usually pays the agent, so buyers often pay nothing. Always confirm the commission in writing before signing.

Question 5

What is the Oqood fee when buying off-plan property in Dubai?

Accepted Answer

Oqood is the interim registration of an off-plan unit on the DLD system via the developer. The 4% DLD registration fee buyers hear about IS paid at this Oqood stage, calculated on the off-plan price. Developers may add an admin fee of roughly AED 1,000-5,000. No second 4% is charged when it converts to a title deed at handover.

Question 6

Is the DLD fee only 2% for off-plan property?

Accepted Answer

No, this is a common myth. The DLD registration fee is 4% for both ready and off-plan purchases. What happens is developers sometimes run time-limited 'DLD waiver' promotions covering 50-100% of the 4% as a sales incentive at selected launches. That is the developer absorbing the fee, not a lower government rate, so read the offer terms carefully.

Question 7

What is the mortgage registration fee in Dubai?

Accepted Answer

If you buy with a home loan, the DLD charges a mortgage registration fee of 0.25% of the loan amount plus about AED 290. On a AED 1 million mortgage that is roughly AED 2,790. It is separate from the 4% transfer fee and is paid to the DLD when the mortgage is registered against the title deed.

Question 8

What other costs come with taking a Dubai mortgage?

Accepted Answer

Beyond the 0.25% registration fee, banks charge a property valuation fee of about AED 2,500-3,500 and an arrangement/processing fee of up to 1% of the loan plus 5% VAT. Life and property insurance may also apply. Resident expats typically need a 20% down payment on homes up to AED 5 million, so plan for that cash too.

Question 9

What is a trustee office fee when transferring property in Dubai?

Accepted Answer

The transfer is completed at a DLD-approved registration trustee office, which charges a service fee of AED 2,000 for properties under AED 500,000 or AED 4,000 for those above, plus 5% VAT (about AED 2,100 or AED 4,200). It is a one-time cost paid on the transfer day, separate from the 4% DLD fee.

Question 10

What is an NOC fee and how much does it cost?

Accepted Answer

A No Objection Certificate (NOC) is issued by the developer confirming the seller has no outstanding service charges before a resale can transfer. The developer sets the price, typically AED 500-5,000 plus VAT depending on the community. By convention it is often the seller's cost, but who pays should be agreed in the sale contract.

Question 11

Is there an annual property tax in Dubai?

Accepted Answer

No. Dubai has no annual property tax and no council tax. The main government charge is the one-time 4% DLD transfer fee at purchase. On an ongoing basis, owners pay building service charges and utilities rather than a recurring property tax. This zero-property-tax status is one of the main reasons Dubai attracts international real-estate investors.

Question 12

Do I pay capital gains tax when I sell property in Dubai?

Accepted Answer

For individuals, no. Dubai has 0% capital gains tax on personal property sales, so a resident selling their own home or investment flat keeps the full gain. Since 2023, UAE companies that hold property may pay 9% corporate tax on net profit above AED 375,000, so the answer differs if you own through a company (verify with a tax adviser).

Question 13

Is rental income taxed in Dubai?

Accepted Answer

Individuals pay no personal income tax on rental income in Dubai, so rent from a flat or villa you own personally is tax-free. Companies that own property fall under the UAE's 9% corporate tax on net profit above AED 375,000. There is no withholding tax on rent, though tenants separately pay a 5% municipality housing fee via DEWA.

Question 14

What are service charges in Dubai and how much are they per sq ft?

Accepted Answer

Service charges are annual fees for maintaining shared areas (security, cleaning, lifts, pools, landscaping), set per square foot and collected by the developer or owners' association. In 2026 they typically run AED 3-30+ per sq ft: villas around AED 2-6, mid-market apartments in the low-to-mid teens, and prime towers like Downtown roughly AED 15-40. Branded residences can exceed AED 50.

Question 15

Do property owners pay the 5% Dubai housing fee?

Accepted Answer

The Dubai Municipality housing fee is 5% of a property's annual rental value, billed monthly through the DEWA account. Tenants clearly pay it on their rent. For owner-occupiers the practice is inconsistent: many report not being charged, though the municipality can assess a notional rental value (verify for your specific property). A landlord who rents out does not pay it, the tenant does.

Question 16

How much cash do I need upfront to buy a AED 1.5 million flat?

Accepted Answer

With a mortgage, budget roughly AED 400,000-430,000. That is a 20% deposit (AED 300,000), the 4% DLD fee (AED 60,000), ~2% agency plus VAT (~AED 31,500), mortgage registration (~AED 3,300), valuation (~AED 3,000), a bank arrangement fee, trustee (AED 4,200) and title/NOC fees. Paying cash removes the deposit and loan costs but you still fund the full price plus ~6-7% in fees.

Question 17

What hidden costs do buyers forget when buying in Dubai?

Accepted Answer

Common surprises: annual service charges (tens of thousands on a large or prime unit), the mortgage arrangement fee (up to 1% + VAT), valuation, conveyancing or legal fees (roughly AED 5,000-10,000 if you use a firm), developer NOC and admin charges, DEWA and chiller/district-cooling connection deposits, Ejari registration and moving costs. Keep a buffer above the headline 4%.

Question 18

Is there VAT when buying a home in Dubai?

Accepted Answer

Residential property is largely VAT-free for buyers: the first sale of a new home within three years of completion is zero-rated, and later resales are VAT-exempt. You do pay 5% VAT on related services such as agency commission, trustee and some developer fees. Commercial property (offices, shops) is different and carries 5% VAT on the sale price.

💰 Costs, Fees & Taxes