The main cost of buying property in Dubai is the Dubai Land Department (DLD) transfer fee of 4% of the price, which the buyer usually pays in full. On top come a trustee office fee of AED 2,000 or AED 4,000 plus VAT, small title deed charges and, if you use one, an agent's commission of typically 2% plus VAT. Foreigners can buy freehold in designated areas and pay the same fees as UAE nationals.
Key points
- DLD fee: 4% of the price, officially split 2% buyer and 2% seller but usually paid in full by the buyer.
- Trustee office fee: AED 4,000 + VAT from AED 500,000, or AED 2,000 + VAT below that.
- Title deed: AED 250, plus AED 10 knowledge and AED 10 innovation fees.
- Mortgage registration: 0.25% of the loan.
- Foreigners can own freehold in designated areas. Dubai has no yearly property tax, but service charges apply.
Dubai property buying costs at a glance
| Cost | Amount | Paid to |
|---|---|---|
| DLD transfer fee | 4% of the price | Dubai Land Department |
| Trustee office fee | AED 4,000 + VAT (price AED 500,000 or more); AED 2,000 + VAT (under AED 500,000) | Registration trustee |
| Title deed issue | AED 250 | DLD |
| Knowledge and innovation fees | AED 10 + AED 10 | DLD |
| Mortgage registration (if borrowing) | 0.25% of the loan | DLD |
| Agent's commission | Typically 2% + 5% VAT | Your agent |
| Developer NOC (resale) | Varies by developer | Developer, usually paid by the seller |
Figures for DLD fees come from DLD's own service pages. Agent commission and NOC charges are typical figures and aren't set by law.
Every cost for your price and situation in Dubai, including taxes for buyers from abroad.
The DLD fee: Dubai's property transfer fee
The DLD fee is a one-off registration fee charged when ownership is transferred. It's 4% of the sale price. DLD's fee list shows 2% from the buyer and 2% from the seller, but standard Dubai practice is for the buyer to pay the whole 4%. It's agreed in the sale contract, so check who pays before you sign.
| Price | DLD fee at 4% |
|---|---|
| AED 750,000 | AED 30,000 |
| AED 1,500,000 | AED 60,000 |
| AED 3,000,000 | AED 120,000 |
For off-plan homes bought from a developer, the purchase is registered on DLD's Oqood system, and the 4% fee is normally due when you register the contract, not at handover. Some developers run offers where they pay part of it.
Trustee office and title deed fees
Transfers are processed at a registration trustee office (a DLD-approved service centre). DLD's sale registration page lists the service partner fee as:
- AED 4,000 + VAT if the sale price is AED 500,000 or more.
- AED 2,000 + VAT if it's under AED 500,000.
You also pay AED 250 for the title deed and AED 10 each for the knowledge and innovation fees. A map fee can apply too. These fixed charges are small next to the DLD fee, but put them in your budget.
Mortgage registration
If you borrow, the mortgage must be registered with DLD. The fee is 0.25% of the loan amount, plus the AED 250 title deed and AED 10 knowledge and innovation fees, and a trustee fee for the mortgage registration. Banks add their own arrangement fees and need an independent report on what the property is worth. Non-residents can usually borrow less, relative to the price, than UAE residents.
Worked examples
A AED 1,500,000 resale apartment, cash purchase, buyer pays the full DLD fee
| Cost | Amount |
|---|---|
| DLD fee (4%) | AED 60,000 |
| Trustee office fee (AED 4,000 + 5% VAT) | AED 4,200 |
| Title deed, knowledge and innovation fees | AED 270 |
| Agent's commission (typical 2% + 5% VAT) | AED 31,500 |
That's roughly AED 96,000 on top of the price, or about 6.4%.
A AED 450,000 studio, cash purchase
The DLD fee is AED 18,000. As the price is under AED 500,000, the trustee office fee is AED 2,000 + VAT, so AED 2,100. Add the AED 270 title deed charges and any agent's fee.
A AED 2,000,000 villa with an AED 1,200,000 mortgage
The DLD fee is AED 80,000. Mortgage registration adds 0.25% of AED 1,200,000, which is AED 3,000, plus the fixed fees and your bank's charges.
Buying property in Dubai as a foreigner
Freehold areas. Dubai's real property registration law lets non-UAE nationals own property in areas designated by the Ruler. Regulation No. 3 of 2006 set out the original areas, including Dubai Marina, Palm Jumeirah, Emirates Hills, Jebel Ali and The World islands, where foreigners can own freehold with no time limit. Many newer master communities have been designated since. Outside freehold areas, foreigners can generally hold only usufruct or lease rights of up to 99 years. Your agent or the developer can confirm the status of a specific building.
No residence needed. You don't need to live in the UAE to buy. You'll need your passport, and for a mortgage, proof of income. A UAE bank account helps with service charges and utilities.
Service charges. Owners pay yearly service charges for maintenance, security and shared facilities, usually priced per square foot. Ask for the last few years' charges before you buy, as they vary a lot between buildings.
Tax at home. Dubai has no annual property tax on homes, but your home country may tax rental income or gains. UK, Irish and US buyers should check their own tax rules.
Common mistakes
- Assuming the seller pays half the DLD fee. Unless the contract says so, expect to pay all 4%.
- Forgetting VAT on fees. Trustee and agent fees carry 5% VAT.
- Not checking service charges. High charges can wipe out rental returns.
- Skipping the NOC. On a resale, the developer must issue a no-objection certificate confirming there are no unpaid service charges before transfer.
Tax back home
Buying abroad can create tax to pay and forms to file where you live, not just where you buy.
- UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
- US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
- Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.
Plan this before you buy, ideally with a tax adviser who knows both countries.
Work out your own figures
Enter the price and the calculator adds up the DLD fee, title deed and trustee office charges. You can add a mortgage and an agent's fee to see the full amount you'll need on top of the price.
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