Key takeaways
- The biggest cost is the Dubai Land Department (DLD) fee: 4 percent of the price, usually paid by the buyer.
- For a ready home bought in cash, budget roughly 6 to 8 percent on top of the price.
- A mortgage adds around 1 to 1.5 percent more in bank and registration fees.
- Off-plan is cheaper upfront: no trustee fee at booking, and you never pay agent commission (the developer pays it).
- No annual property tax, and no tax on rental income or capital gains for individuals.
Knowing your Dubai property buying costs before you make an offer is the easiest way to avoid a nasty surprise at transfer. The good news: the fees are standard, published and predictable.
Below is every fee in one place, a worked example on an AED 2 million home, and how the picture changes if you buy off-plan or take a mortgage.
The short answer
On a ready property bought in cash, your total extra costs usually land between 6 and 8 percent of the price. More than half of that is the 4 percent DLD fee. The rest is the agent's commission, the trustee office fee and small government charges.
Off-plan works differently. You pay the 4 percent DLD fee plus a developer admin fee, and the agent's commission is always paid by the developer, never by you. That usually brings your upfront costs closer to 4 to 5 percent.
Every fee, in one table
| Fee | Typical amount | Who pays |
|---|---|---|
| DLD transfer fee | 4% of the price | Buyer (by market practice) |
| DLD admin fee | AED 580 (apartments and villas) | Buyer |
| Trustee office fee (ready property) | AED 4,000 + 5% VAT above AED 500k; AED 2,000 + VAT below | Buyer |
| Agent commission (ready property) | 2% + 5% VAT | Buyer |
| Agent commission (off-plan) | AED 0 for the buyer | Always the developer |
| Developer NOC (ready resale) | AED 500 to 5,000 + VAT | Usually seller |
| Oqood / developer admin (off-plan) | About AED 1,000 to 6,000 | Buyer |
| Snagging inspection (optional) | About AED 800 to 2,500 | Buyer |
Typical market figures as of September 2026. Exact amounts vary by developer, bank and property.
Worked example: AED 2M ready apartment, cash
Here is what a AED 2,000,000 ready apartment bought in cash really costs on transfer day.
| Item | Amount |
|---|---|
| Property price | AED 2,000,000 |
| DLD transfer fee (4%) | AED 80,000 |
| DLD admin fee | AED 580 |
| Trustee office fee (AED 4,000 + VAT) | AED 4,200 |
| Agent commission (2% + VAT) | AED 42,000 |
| Total extra costs | About AED 126,800 (about 6.3%) |
The NOC is normally paid by the seller, so it is not included here.
Extra costs with a mortgage
If you finance the purchase, three bank-related costs are added on top:
- Mortgage registration: 0.25 percent of the loan plus about AED 290, paid to the DLD.
- Property valuation: about AED 2,500 to 3,500 plus VAT, required by the bank.
- Bank arrangement fee: up to 1 percent of the loan plus VAT (some banks waive or reduce it).
On a AED 1.2 million loan, that is roughly AED 3,300 in registration, about AED 3,000 for the valuation and up to around AED 12,600 in arrangement fees. In total, a mortgage usually adds around 1 to 1.5 percent to your buying costs.
Off-plan is cheaper upfront
Buying off-plan changes the picture in your favour:
- The 4 percent DLD fee is paid once, at Oqood registration (the official register for off-plan sales). There is no second 4 percent at handover.
- There is no trustee office fee at booking.
- You never pay agent commission on off-plan. The developer always pays the agent, not the buyer.
- Some developers run promotions that cover part or all of the DLD fee.
If you want the full off-plan process, step by step, read how foreign investors can buy off-plan in Dubai.
Costs after you buy
Once you own the property, the running costs are simple:
- Service charges: roughly AED 3 to 30 per square foot per year, depending on the building and its amenities. Always ask for the latest figure before you buy.
- DEWA (water and electricity): a refundable deposit of about AED 2,000 for an apartment or AED 4,000 for a villa, plus a small activation fee.
- District cooling: in some buildings, a separate deposit and monthly charge for air conditioning.
And what you will not pay: Dubai has no annual property tax, and individuals pay no tax on rental income or capital gains from property.
How to keep your costs down
- Look for launch incentives. On new projects, developers sometimes cover part or all of the 4 percent DLD fee. That can be worth tens of thousands of dirhams.
- Compare banks, not just rates. Arrangement fees range from zero to 1 percent of the loan. On a large mortgage, that difference matters as much as the interest rate.
- Check the service charge before you fall in love. Two similar apartments can have very different yearly charges. Over ten years, that adds up to a real number.
- Keep cash aside for the extras. Transfers go smoothly when the fees are ready on the day. Plan your budget as price plus 8 percent for a ready home, and you will rarely be caught short.
The fees are fixed. What really moves your total cost is what you negotiate and what you buy.
I always check three things with clients: whether the developer is covering any fees on a launch, what the building's service charge will really be once it is complete, and whether a ready unit's price already reflects the agent and transfer costs you will pay on top.
Stefano Iannotti
Frequently asked questions
How much are buying costs in Dubai in total?
For a ready property bought in cash, budget roughly 6 to 8 percent on top of the price. With a mortgage, add around 1 to 1.5 percent more. Most off-plan purchases cost less upfront, usually around 4 to 5 percent.
Who pays the 4% DLD fee, buyer or seller?
By market practice the buyer pays the full 4 percent Dubai Land Department fee, even though it can legally be split. On some new launches the developer offers to cover part or all of it as a promotion.
Is there VAT on residential property in Dubai?
There is no VAT on the price of a residential property. VAT at 5 percent applies to some service fees, such as the agent's commission on ready properties, the trustee office fee and bank charges.
Do I pay the 4% again when my off-plan unit is handed over?
No. The 4 percent paid at Oqood registration covers the purchase. At handover you only pay small admin charges to convert your registration into a title deed.
Are there annual property taxes in Dubai?
No. Dubai has no annual property tax, and individuals pay no tax on capital gains or rental income from property. The main yearly cost is the building's service charge.
Want the exact costs for your purchase?
Send me the property or budget you have in mind and I'll give you a line-by-line cost breakdown before you commit.
Stefano Iannotti
Real estate advisor in Dubai and Abu Dhabi, specialising in off-plan property for local and international buyers. RERA Broker Card No. 84308. Speaks Italian, English and Spanish.