The real cost of buying property in Dubai
Total transaction costs when buying Dubai property are typically 7–10% of the purchase price. The biggest line is the 4% Dubai Land Department transfer fee, followed by ~2% agency commission (+5% VAT) and trustee, title-deed and registration charges.
of the purchase price, on top of the price itself.
Buying at AED 2,000,000, line by line
This is a cash purchase (no mortgage). With financing, add mortgage registration of 0.25% of the loan plus an ~AED 290 admin fee.
| Fee | Basis | Amount (AED) |
|---|---|---|
| DLD transfer fee | 4% of price | 80,000 |
| Agency commission | 2% of price | 40,000 |
| VAT on commission | 5% of commission | 2,000 |
| Trustee registration | Property ≥ AED 500,000 | 4,000 |
| VAT on trustee fee | 5% of trustee fee | 200 |
| Title deed admin | Fixed DLD charge | 580 |
| Total transaction cost≈ 6.3% of price | 126,780 | |
Source: PropertyFinder DLD fees; Engel & Völkers; DLD. Why the example lands at about 6.3% while the headline says 7–10%: the example is a cash purchase with only the mandatory lines (DLD transfer, agency commission with VAT, trustee and admin). Financed purchases add mortgage registration (0.25% of the loan) plus bank arrangement and valuation fees; many buyers also pay for a conveyancer, an NOC from the developer on resales, and, on off-plan, the Oqood registration. With those, the all-in figure typically ends between 7 and 10%. Run your own case in the fee calculator and ask for every line in writing before you sign.
Officially split, in practice the buyer pays
The 4% Dubai Land Department transfer fee is nominally split 2% / 2% between buyer and seller. In practice, the buyer almost always pays the full 4%. Budget for it as a buyer-side cost.
What you'll pay after the purchase
Annual service charges
Owners pay yearly service and maintenance charges, billed per square foot and varying by community and building amenities. They cover shared facilities, security and upkeep.
General running costs
Expect utilities (DEWA), cooling and, if you let the property, management or agency fees. Dubai levies no annual property tax on individual owners.
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Data as of: 2025 full-year, verified 2026-06-16. Yields are gross unless stated otherwise. Figures are corrected when the source changes; changes are logged in the Market Watch.
Frequently asked questions
How much does it cost to buy property in Dubai?+
Total transaction costs are typically 7–10% of the purchase price. On a cash AED 2,000,000 purchase that works out to roughly AED 126,780 (about 6.3%), made up of the DLD fee, agency commission plus VAT, trustee fee and title-deed admin.
Who pays the DLD transfer fee?+
Officially the 4% DLD transfer fee is split 2% / 2% between buyer and seller, but in practice the buyer almost always pays the full 4%.
Is there VAT on buying residential property in Dubai?+
There is no VAT on the residential property price itself, but 5% VAT applies to service fees such as the agency commission and the trustee registration fee.
What extra fees apply if I use a mortgage?+
If you finance the purchase, add mortgage registration of 0.25% of the loan amount plus an ~AED 290 admin fee on top of the standard transaction costs.
Are there ongoing taxes on Dubai property?+
Dubai levies no annual property tax on individual owners. Ongoing costs are mainly annual service charges (per square foot), utilities and cooling, plus management fees if you let the property.