Budget 6 to 8% for cash buyers and 7.5 to 10% with a mortgage. This guide breaks down every Dubai property buying fee in 2026, including DLD, agency, trustee, NOC, mortgage, and ongoing ownership costs.
Updated May 2026 · DLD 4% Transfer Fee · CBUAE February 2025 Directive · 2026 LTV Bands
This is the cost companion to our main guide on how to pay for property in Dubai. That page covers the payment methods. This one covers what every method actually costs you.
Legally split 2 percent buyer and 2 percent seller, but in real Dubai practice the buyer pays the full 4 percent unless the MOU says otherwise. It is paid by manager's cheque made out to the Dubai Land Department on transfer day. It cannot be paid in cash, cannot be deferred, and since February 2025 cannot be financed.
That is an effective 2.1 percent of the price, paid by the buyer. On off-plan bought directly from a developer, the developer pays the commission and you pay nothing for agency services.
The registration trustee office charges AED 4,200 (AED 4,000 plus VAT) on any sale at or above AED 500,000, plus around AED 580 for the title deed and maps.
DLD mortgage registration of 0.25 percent of the loan, a bank arrangement fee around 1 percent plus VAT, a valuation of AED 2,500 to 3,500, plus mandatory life and property insurance.
The one-off transaction cost is the trade-off. There is no recurring property tax to plan for.
Developers routinely waive the DLD fee and pay the commission as launch incentives, which can drop your day-one outlay below 2 percent of the price plus your first staged payment.
Here is every cost category on a Dubai purchase, who normally pays it, and what it runs. Detailed breakdowns follow below.
The Dubai Land Department transfer fee is the largest cost in any purchase, and the one buyers underestimate most. It is set under Dubai Law No. 2 of 2013 and has not changed since. There is no announced change for 2026.
The fee is charged on the price recorded in the Sale and Purchase Agreement, not on any independent bank valuation. On a AED 2 million home, that is AED 80,000.
The DLD structures it as 2 percent seller and 2 percent buyer. Market convention in Dubai puts the entire 4 percent on the buyer unless the parties agree otherwise in the MOU (Form F). In a softer or balanced market this is genuinely negotiable, and securing a 50/50 split on a AED 2 million purchase saves the buyer AED 40,000.
On new launches, developers frequently offer a full or partial DLD fee waiver as a sales incentive. Always get the waiver written into the SPA, not the brochure.
Beyond the 4 percent, a fixed set of administrative charges applies to every transfer. These are small but real, and you should see them itemised on your quote.
The DLD's published schedule lists a AED 250 title deed certificate, a AED 250 property map, and the AED 10 plus AED 10 knowledge and innovation fees. Trustee centres often bundle these into a single quoted figure of around AED 580 for an apartment or office (AED 430 for land, AED 40 for off-plan). The total payable is similar either way.
Every transfer is processed through a DLD-authorised Real Estate Registration Trustee centre. The fee is AED 4,000 plus 5 percent VAT (AED 4,200) on any sale valued at or above AED 500,000, and AED 2,000 plus VAT (AED 2,100) below that threshold. This is a buyer cost.
If you are financing, there is an additional service partner fee for registering the mortgage. It is AED 4,000 plus VAT on a standard mortgage and AED 5,000 plus VAT for an off-plan mortgage registered through Oqood. Register the sale and mortgage on the same day and the registrar fee on the mortgage side is waived.
There is no statutory rate, but the RERA-recognised market standard for a secondary residential sale is 2 percent of the price plus VAT on the commission, an effective 2.1 percent. On a AED 2 million apartment that is AED 40,000 plus AED 2,000 VAT, so AED 42,000. The brokerage must be VAT-registered and give you a tax invoice with its TRN. On rentals, the tenant pays 5 percent of annual rent (or AED 5,000, whichever is higher) plus VAT.
On the secondary market the buyer almost always pays, unless the seller signed an exclusive listing. On off-plan bought directly from the developer, the developer pays and the buyer pays nothing. On an off-plan resale (assignment), the buyer pays 2 percent plus VAT to the broker on top of any developer transfer fee.
Before a resale transfer can complete, the master developer must issue an NOC confirming all service charges are settled. Most developers charge AED 1,000 to AED 3,000, with luxury and branded developments running as high as AED 10,000 to AED 15,000. The NOC is usually paid by the seller, but it is negotiable, so state who pays in the MOU. The certificate is valid for 90 days.
Selling an off-plan unit before handover triggers a developer transfer or assignment fee, separate from the NOC, typically 2 to 4 percent of the original purchase price. Most SPAs lock assignments until you have paid 30 to 40 percent of the price.
Paid to the DLD, plus a widely-quoted AED 290 trustee admin charge. On a AED 1.6 million loan that is AED 4,000 plus AED 290, so AED 4,290. Note the AED 290 is a trustee-bundled charge quoted by every bank and broker but not listed as a separate DLD line item, so treat it as standard market practice.
Most lenders charge around 1 percent of the loan, though many waive it during promotions. Always negotiate this. The early settlement penalty is capped by the Central Bank at 1 percent of the outstanding balance or AED 10,000, whichever is lower.
Required by the bank before approval, paid to its panel valuer.
Life cover assigned to the bank runs roughly 0.4 to 0.7 percent of the outstanding balance per year, falling as the loan amortises. Property (building) insurance runs AED 1,000 to 3,000 a year. Source both independently if the bank's bundled product is more expensive.
Brokers are normally paid a referral fee by the lender, not by you. Always ask whether the broker charges a separate retainer.
| Buyer | Property Value | Max LTV |
|---|---|---|
| UAE national, first home | ≤ AED 5M | 85% |
| UAE national, first home | > AED 5M | 75% |
| UAE national, second property | Any | 65% |
| Expat resident, first home | ≤ AED 5M | 80% |
| Expat resident, first home | > AED 5M | 70% |
| Expat resident, second property | Any | 60% |
| Any buyer, off-plan | Any | 50% |
| Non-resident (in practice) | Any | 50 to 65% |
Not legally required, but strongly recommended for first-time, international and mortgaged purchases. Complex deals can reach AED 15,000, and commercial conveyancing up to AED 25,000. VAT at 5 percent applies on top.
Plus notarisation and certified Arabic translation, another AED 1,000 to 3,000 if your documents are not in English or Arabic.
These are not buying costs, but every buyer must budget for them from day one of ownership.
Charged annually under Dubai Law No. 6 of 2019, calculated as unit area times the RERA-approved rate. Budgets must clear the Mollak system before owners are billed. Verify the exact approved rate for your building on the DLD Service Charge Index before you sign the MOU. Typical 2026 ranges: budget apartment communities AED 8 to 16 per sq ft, mid-market (Marina, JLT, Business Bay) AED 15 to 22, prime (Downtown, Palm towers, DIFC) AED 22 to 35, ultra-prime and branded residences AED 40 to nearly 70, standard villa communities AED 2 to 5.
Most modern buildings use district cooling from Empower, Emicool or Tabreed. The capacity (demand) charge is around AED 750 per refrigeration ton per year, billed monthly in advance, so a typical one to two-bedroom apartment runs roughly AED 3,000 to 6,000 a year, payable by the owner whether occupied or not. The consumption charge (around 0.56 fils per RT-hour) is usually paid by the occupant. "Chiller free" listings fold cooling into rent or service charge.
A refundable security deposit of AED 2,000 (AED 4,000 for a villa) plus a AED 100 activation fee (AED 300 for villas) and the AED 10 plus AED 10 fees. A 5 percent municipality housing fee is then added to every DEWA bill based on the property's rental value (UAE nationals exempt).
The fee schedule is almost identical, but what you actually pay up front is very different.
4 percent DLD fee at Oqood registration, an AED 1,000 developer self-registration fee, plus the AED 10 and AED 10 fees. Maps and the title deed (AED 250 each) apply at handover when Oqood converts to a title deed.
What you feel: the developer usually pays the broker commission (you save 2.1 percent), DLD fee waivers are common launch incentives, and payment plans (60/40, 70/30, or post-handover plans deferring up to three years at zero interest) spread the cost. Off-plan mortgages are capped at 50 percent LTV, so most off-plan is funded through the developer plan rather than a bank.
Day-one outlay, structured well: under 2 percent of price plus your first staged payment.
The full 4 percent DLD fee, the 2.1 percent agency commission, the AED 4,200 trustee fee, the NOC and conveyancing, all settled in a single transaction at the trustee office. Title deed issued the same day.
Day-one outlay: 6.5 to 7 percent of price in cash, plus your down payment if mortgaged.
Cash Buyer
Mortgage Buyer (AED 1.6M loan, 80% LTV)
| Cost | Amount |
|---|---|
| DLD transfer fee (4%) | AED 80,000 |
| Trustee office fee | AED 4,200 |
| Title deed and admin | AED 580 |
| Developer NOC (mid-range) | AED 1,500 |
| Agency commission (2% + VAT) | AED 42,000 |
| Conveyancing | AED 7,500 |
| DEWA connection | AED 2,130 |
| Total transaction cost | AED 137,910 |
| As % of price | ~6.9% |
| Cost | Amount |
|---|---|
| Down payment (20% equity) | AED 400,000 |
| All cash-buyer costs above | AED 137,910 |
| Mortgage registration (0.25% + AED 290) | AED 4,290 |
| Mortgage trustee fee | AED 4,200 |
| Bank arrangement (~1% + VAT) | AED 16,800 |
| Property valuation | AED 3,000 |
| Year-one life insurance (~0.5%) | AED 8,000 |
| Year-one property insurance | AED 2,000 |
| Total day-one cash | AED 576,200 |
| Of which fees and insurance | ~AED 176,200 (8.8%) |
Dubai charges no annual property tax, no capital gains tax, no inheritance tax and no personal income tax on rental income for individual owners. The 9 percent federal corporate tax only applies if you hold the property through a licensed company with profits above AED 375,000.
The first sale of a new home within three years of completion is zero-rated, and all subsequent residential sales and leases are VAT-exempt. Commercial property, by contrast, carries 5 percent VAT, paid by the buyer directly to the FTA before transfer. Services attached to a residential purchase (agency, conveyancing, management) do carry 5 percent VAT.
Budget 6 to 8 percent of the purchase price for a cash purchase of a ready property, and 7.5 to 10 percent if you take a mortgage, on top of any down payment. The largest single item is the DLD 4 percent transfer fee.
Legally it is split 2 percent each, but Dubai market convention is that the buyer pays the full 4 percent unless the MOU states otherwise. The split is negotiable, and on off-plan launches developers often waive it entirely.
On the price recorded in the Sale and Purchase Agreement, not on any independent bank valuation.
No. Since the Central Bank directive of February 2025, banks can no longer finance the DLD fee, the agency commission or the mortgage registration cost. These must all be paid in cash, in addition to your down payment.
2 percent of the purchase price plus 5 percent VAT on the commission, an effective 2.1 percent. On the secondary market the buyer pays it; on off-plan bought directly from a developer, the developer pays it.
A fixed AED 4,000 plus VAT (AED 4,200) on any sale at or above AED 500,000, and AED 2,000 plus VAT (AED 2,100) below that. It is paid by the buyer at transfer.
A DLD mortgage registration of 0.25 percent of the loan plus around AED 290, a mortgage trustee fee of about AED 4,200, a bank arrangement fee up to 1 percent plus VAT, a valuation of AED 2,500 to 3,500, and mandatory annual life and property insurance.
No. There is no annual property tax, no capital gains tax and no income tax on rental income for individuals. The ongoing costs to budget for are service charges, cooling and DEWA, not taxes.
Up front, usually yes. Developers commonly waive the DLD fee and pay the commission, and payment plans spread the cost, so day-one outlay can fall below 2 percent of the price plus your first instalment. The total fee schedule itself is almost identical.
No. DLD and trustee fees are identical for nationals, residents and non-residents. The only real difference is mortgage access: non-residents are typically capped at 50 to 65 percent LTV and pay slightly higher interest rates.
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