What taxes and fees should I expect when buying a property in Dubai?
Here are the main taxes and fees you should expect when buying a property in Dubai as of 2025:
Mandatory Government & Land Department Fees
- DLD Transfer Fee: 4% of the property’s sale price charged by the Dubai Land Department (DLD) for transferring ownership. Registration/Admin Fee (Title Deed): Fixed fee for issuing a new title deed typically around AED 580.
- Mortgage Registration Fee: If you’re using finance, there’s 0.25% of the mortgage amount plus an admin fee of about AED 290.
- Property Registration Fee: For properties below AED 500,000: ~AED 2,000 + VAT; above AED 500,000: ~AED 4,000 + VAT.
Broker / Agent Fees
- Commission for buying property: Generally 2% of the purchase price plus 5% VAT. This is common but may be negotiable depending on the property, developer, or market.
- Off-plan properties: Often developers pay the agents’ commissions themselves, so buyers may not need to pay this fee.
Other Fees & Costs to Budget For
- No Objection Certificate (NOC) from Developer: Needed for resales, sometimes for transfers; fees vary by developer.
- Trustee or Registration Office Fees: Depending on location or use of a trustee office, could be AED 2,000–AED 4,000.
- Valuation & Mortgage Setup Fees: If financing, bank valuation (few thousand AED) + processing / administration fees.
- Service & Maintenance Charges: Ongoing charges (annual) for building maintenance, common area upkeep, amenities; depends on location, developer quality, project type.
Example Breakdown
| Fee / Charge | Typical Amount |
|---|---|
| DLD Transfer Fee | 4% of sale price |
| Title Deed Issue (Admin Fee) | ≈ AED 580 |
| Mortgage Registration Fee | 0.25% of mortgage + AED 290 |
| Agent Commission | ≈ 2% of price + VAT (unless developer covers it for off-plan) |
| Property Registration Fee | AED 2,000-4,000 + VAT (depending on property value) |
If you plan to buy off-plan, check whether any of these fees are waived or included by the developer (especially the agent commission or DLD fees).
In summary, the main fees are the 4% DLD transfer, agent commission ~2%, plus admin, registration, mortgage-related fees, and annual maintenance. Always build a buffer of ~5-7% above the purchase price to cover all such costs.