What's in this guide
Most buyers budget for the property and stop there. Then the transfer appointment arrives and there is a second bill nobody mentioned.
Dubai is actually one of the more predictable markets in the world for this: there is no annual property tax, no capital gains tax and no tax on rental income. But the costs you do pay are concentrated at purchase, and they are large enough that they change your real entry price.
Budget roughly 6% to 8% on top of the purchase price for a cash purchase, and up to 10% with a mortgage. Below is where every dirham of that goes.
1. The 4% DLD transfer fee
This is the single largest cost after the property itself. The Dubai Land Department charges 4% of the sale price on every registered transaction, without exception.
A detail worth knowing: the fee is legally a matter for the sale contract, not a rule that the buyer must pay it all. In practice, Dubai market convention puts the full 4% on the buyer, and that is what almost every contract reflects.
Where this genuinely moves: off-plan launches. Developers frequently absorb 50% or 100% of the DLD fee as a sales incentive. That is a real saving of tens of thousands of dirhams and it is one of the first things worth asking about on any new launch.
2. Registration, trustee and title deed fees
These are fixed administrative charges, and they are small relative to the 4% — but they are not zero.
| Charge | Amount |
|---|---|
| Trustee / registration office fee (property AED 500,000 and above) | AED 4,000 + 5% VAT |
| Trustee / registration office fee (property below AED 500,000) | AED 2,000 + 5% VAT |
| Title deed issuance (apartments and offices) | around AED 580 |
| Off-plan contract registration (Oqood) | around AED 40 |
| Miscellaneous admin / knowledge and innovation fees | a few hundred dirhams |
Off-plan works slightly differently: you register an Oqood (interim sale contract) rather than a title deed, and the title deed is issued at handover. The DLD 4% still applies, and on off-plan it is normally collected up front through Oqood registration.
3. Agency commission
On a resale (secondary market) purchase, standard agency commission is 2% of the price plus 5% VAT.
On off-plan bought directly from the developer, there is usually no buyer-side commission at all — the developer pays the brokerage. This surprises a lot of first-time buyers, and it is one of the quieter arguments for going off-plan: you get professional representation without paying for it.
Worth saying plainly: an agent being paid by the developer has an obvious incentive. Ask your broker directly which projects they would put their own money into, and why they would rule the others out. The answer tells you a great deal.
4. If you are using a mortgage
Financing adds its own layer:
- DLD mortgage registration: 0.25% of the loan amount, plus a small admin charge.
- Bank arrangement / processing fee: typically up to around 1% of the loan, often negotiable.
- Property valuation: usually in the AED 2,500–3,500 range.
- Life and property insurance: required by most lenders, priced annually.
Together these are why a mortgaged purchase lands nearer 8–10% in total costs rather than 6–8%.
5. Ongoing costs after you own it
Purchase costs are one-off. These are not, and they are what actually determines your net yield:
- Service charges — billed per square foot per year, and they vary enormously by building. RERA publishes a service charge index, and checking a specific building against it before you buy is one of the highest-value ten minutes in the whole process.
- Chiller / cooling charges — in some buildings these are separate from service charges and can be significant.
- DEWA deposit and connection — refundable deposit plus activation.
- Property management — if you are letting the unit, typically a percentage of annual rent.
The rule of thumb worth internalising: after service charges, management and maintenance, net yield usually lands 1 to 1.5 percentage points below the gross figure you were quoted. Any broker showing you gross yield without mentioning that is selling, not advising.
6. A worked example: AED 1,500,000 apartment, cash
| Line item | Amount |
|---|---|
| Property price | AED 1,500,000 |
| DLD transfer fee (4%) | AED 60,000 |
| Trustee office fee (incl. VAT) | AED 4,200 |
| Title deed issuance | ≈ AED 580 |
| Admin / knowledge fees | ≈ AED 300 |
| Agency commission (2% + VAT, resale) | AED 31,500 |
| Total on top of price | ≈ AED 96,580 (≈ 6.4%) |
Buy the same unit off-plan from a developer who absorbs the DLD fee and pays the brokerage, and that number can fall to a few thousand dirhams. That gap — not the headline price per square foot — is often where the real difference between two similar deals sits.
7. Frequently asked questions
Who pays the 4% DLD fee in Dubai, the buyer or the seller?
It is a contractual matter, not a fixed legal split. In practice, Dubai market convention is that the buyer pays the full 4%. On off-plan launches, developers often absorb 50% or 100% of it as an incentive.
Is there property tax in Dubai?
No. Dubai has no annual property tax, no capital gains tax and no tax on rental income. Costs are concentrated at the point of purchase instead. You may still have obligations in your home country — check with a tax adviser there.
How much are total closing costs in Dubai?
Budget roughly 6–8% of the purchase price for a cash purchase, and 8–10% with a mortgage. The 4% DLD transfer fee is more than half of it.
What is Oqood?
Oqood is the interim registration of an off-plan sale contract with the Dubai Land Department, before a title deed exists. The title deed is issued once the property is handed over.
Do I pay commission when buying off-plan?
Usually not. On off-plan bought directly from a developer, the developer pays the brokerage, so there is normally no buyer-side commission. On resale purchases, expect 2% plus 5% VAT.
What are service charges and how much are they?
Service charges are an annual per-square-foot charge covering building maintenance, security and shared facilities. They vary widely by building. RERA publishes a service charge index — check the specific building before buying, not the community average.
Want the real number on a specific unit?
Send Ali the property you are looking at and he will come back with the full costed position — purchase fees, service charges, expected net yield and the exit maths — before you commit to anything.
Sources & verification. Fee structure verified against the Dubai Land Department published schedules and RERA guidance. Figures reflect the position as at 2 August 2026 and can change — always confirm current rules with the relevant authority before you commit.