The True Cost of Buying Property in Dubai: Every Fee Between the Asking Price and Your Keys
The headline price is only the beginning. Between DLD transfer fees, agency commission, trustee charges, mortgage registration and the first year of service charges, budget roughly 7–8% on top of the price for a cash purchase and more with a loan. Here is the full list.
Dubai markets itself as a tax-free property market, and in the sense that matters most, it is: no annual property tax, no capital gains tax, no stamp duty in the British sense. But "no tax" is not "no cost". A buyer who budgets only for the price will be short by the equivalent of several months' rent at the transfer appointment. Below is every line item, in the order you will meet it.
One-off costs at purchase
Dubai Land Department transfer fee: 4%
The largest single charge. It is calculated on the purchase price (or the DLD's valuation if higher) and paid at the trustee office on transfer day, usually by manager's cheque. There is also a small fixed admin fee of a few hundred dirhams. For off-plan purchases the equivalent is the Oqood registration fee, also 4%, paid when the sale contract is registered.
Agency commission: 2% plus VAT
The standard buyer-side commission for a ready property is 2% of the price, with 5% VAT on top, making it 2.1% in effect. Developers pay the agent on new launches, so buyers of off-plan do not normally pay commission. Commission is negotiable in principle; in a soft market it is sometimes shared with the seller.
Registration trustee fee
Transfers happen at licensed trustee offices, not at the DLD itself. The office charges a fixed fee: around AED 4,000 plus VAT for properties above AED 500,000 and about half that below. Mortgage-backed transfers may carry a slightly higher fee.
Developer No Objection Certificate
Before a resale can transfer, the developer confirms there are no outstanding service charges or dues and issues an NOC. Fees range from about AED 500 to AED 5,000 depending on the developer, and in some communities the seller pays it. Agree this in the Memorandum of Understanding (Form F) so it does not become a dispute on the day.
Conveyancing (optional but recommended)
Dubai does not require a lawyer for a transfer, and many buyers rely on the agent. A conveyancer who reviews the MOU, checks the title and manages the cheques typically charges a flat fee in the low thousands of dirhams. For a first purchase it is money well spent.
Extra costs with a mortgage
- Mortgage registration fee: 0.25% of the loan amount plus a small admin fee, paid to the DLD at transfer.
- Bank arrangement fee: commonly up to 1% of the loan, sometimes waived in promotions.
- Valuation fee: a few thousand dirhams for the bank's independent valuation.
- Life and property insurance: required by lenders for the term of the loan, usually paid monthly.
- Early settlement fee: capped by the Central Bank at 1% of the outstanding balance or AED 10,000, whichever is lower, if you repay early.
For a non-resident buyer the bank may also require a larger deposit than for a resident, which changes the cash needed but not the fee structure. Our separate guide to mortgages in Dubai covers the loan-to-value rules.
Recurring costs after you own it
Service charges
Paid to the owners' association for maintenance of common areas, security, pools, gyms and the sinking fund. Quoted per square foot per year and approved by RERA, they range widely: a low-rise community might be under AED 10 per square foot, a Downtown tower with extensive amenities several times that. Always ask for the current approved service charge and the last two years' history, because they are the single biggest factor in your net rental yield.
Chiller and district cooling
In many towers air conditioning is supplied by a district cooling company. Owners pay a capacity charge whether or not the unit is occupied, plus consumption. Check whether the quoted service charge includes cooling or whether it is billed separately.
DEWA and connection deposits
Electricity and water require a refundable deposit of a few thousand dirhams depending on unit type, plus connection fees. Tenants pay the 5% housing fee through DEWA; owner-occupiers pay it too.
A worked example
A ready two-bedroom apartment at AED 2,000,000 bought with cash:
| Item | Approximate cost |
|---|---|
| DLD transfer fee (4%) | AED 80,000 |
| Agency commission (2% + VAT) | AED 42,000 |
| Trustee office fee | AED 4,200 |
| Developer NOC | AED 1,000–5,000 |
| Conveyancer | AED 5,000 |
| Total one-off | ≈ AED 135,000 (about 6.8%) |
Add a 75% mortgage and the loan registration, bank fee and valuation push the total toward 8%. Then budget the first year's service charges and deposits before any rent arrives.
The takeaway
Dubai's acquisition costs are moderate by international standards and refreshingly simple to calculate because almost all of them are percentages of the price. The mistake is not that they are hidden; it is that buyers see "no tax" and stop reading. Build the full list into your offer price and the transfer appointment holds no surprises.
Figures are indicative as of October 2026 and change periodically. Confirm current fees with the Dubai Land Department, your lender and your trustee office.
Questions, answered
- How much are closing costs in Dubai?
- For a cash purchase of a ready home, plan on about 7–8% of the price: 4% DLD transfer fee, 2% agency commission plus VAT, a fixed trustee fee and the developer's NOC. A mortgage adds roughly another 1% in bank and registration charges.
- Who pays the DLD fee, buyer or seller?
- Legally the 4% is split, but in practice the buyer pays the whole amount in almost every Dubai transaction. Negotiating a split is possible but unusual.
- Is there property tax in Dubai?
- There is no annual property tax or capital gains tax. The recurring costs are service charges to the owners' association and, for tenants, a housing fee of 5% of annual rent added to the DEWA bill.
