Fees and Costs · Dubai Property Payment Guide
Dubai Property Buying Costs
Every Fee From the DLD Transfer to Your First DEWA Bill
Budget 6 to 8% of the price for a ready cash purchase and 7.5 to 10% with a mortgage. This guide breaks down DLD, agency, trustee, NOC, mortgage, legal, and ongoing ownership costs.
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Costs at a Glance
Your Total Buying Costs in Brief
Every route in the guide to how to pay for property in Dubai ends at the same fee schedule. On a ready purchase the fees arrive together on transfer day; off-plan, several of them are waived or spread out. Six facts shape the budget.
DLD Transfer Fee: 4%
Charged on the SPA price. Legally split 2% buyer and 2% seller, but in Dubai practice the buyer pays the full 4% unless the MOU says otherwise. It is paid by manager's cheque to the Dubai Land Department on transfer day, cannot be deferred, and since February 2025 cannot be financed.
Agency Commission: 2%
On the secondary market, 2% plus VAT, an effective 2.1% of the price, paid by the buyer. On off-plan bought directly from a developer, the developer pays the commission.
Trustee, Title, and Admin
Roughly AED 4,800 ≈ USD 1,307 fixed: AED 4,200 ≈ USD 1,144 at the registration trustee office on any sale at or above AED 500,000 ≈ USD 136,147, plus around AED 580 ≈ USD 158 for the title deed and maps.
A Mortgage Adds 2 to 3%
DLD mortgage registration of 0.25% of the loan, a bank arrangement fee around 1% plus VAT, a valuation, and mandatory life and property insurance.
No Annual Property Tax
No annual property tax, no capital gains tax, and no income tax on rental income for individuals. The one-off transaction cost is the trade-off, with no recurring property tax to plan for.
Off-Plan Costs Less Up Front
Developers routinely waive the DLD fee and pay the commission as launch incentives, which can bring the day-one outlay below 2% of the price plus your first staged payment.
The Full Cost Stack
DLD Transfer Fee
Amount: 4% of the price. Paid by: buyer, in full by convention. When: transfer day.
DLD Admin, Title Deed, Maps
Amount: about AED 580 ≈ USD 158. Paid by: buyer. When: transfer day.
Knowledge and Innovation Fees
Amount: AED 10 ≈ USD 3 each. Paid by: buyer. When: transfer day.
Registration Trustee Fee
Amount: AED 4,200 ≈ USD 1,144 at or above AED 500K ≈ USD 136K. Paid by: buyer. When: transfer day.
Agency Commission
Amount: 2%. Paid by: buyer on the secondary market. When: at MOU or transfer.
Developer NOC
Amount: AED 500 to 5,000 ≈ USD 136 to 1,361. Paid by: seller, negotiable. When: before transfer.
Conveyancing, Optional
Amount: AED 5,000 to 10,000 ≈ USD 1,361 to 2,723. Paid by: buyer. When: before transfer.
Mortgage Registration
Amount: 0.25% of the loan plus about AED 290 ≈ USD 79. Paid by: buyer. When: transfer day.
Mortgage Trustee Fee
Amount: AED 4,200 ≈ USD 1,144. Paid by: buyer. When: transfer day.
Bank Arrangement Fee
Amount: 0 to 1% plus VAT. Paid by: buyer. When: on approval.
Property Valuation
Amount: AED 2,500 to 3,500 ≈ USD 681 to 953. Paid by: buyer. When: before approval.
Life Insurance
Amount: about 0.4 to 0.7% a year. Paid by: buyer. When: annually.
Property Insurance
Amount: AED 1,000 to 3,000 ≈ USD 272 to 817 a year. Paid by: buyer. When: annually.
DEWA Connection
Amount: about AED 2,130 ≈ USD 580 for an apartment. Paid by: buyer. When: at move-in.
DLD Fees
The Big One: The DLD 4% Transfer Fee
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, has not changed since, and has no announced change.
Charged on the SPA Price
The fee applies to the price recorded in the Sale and Purchase Agreement, not to an independent bank valuation. On an AED 2M ≈ USD 545K home, that is AED 80,000 ≈ USD 21,784.
Legally Split, Practically Buyer-Paid
The DLD structures it as 2% seller and 2% buyer, but Dubai convention puts all 4% on the buyer unless the MOU (Form F) says otherwise. In a softer or balanced market it is negotiable, and a 50/50 split on an AED 2M ≈ USD 545K purchase saves the buyer AED 40,000 ≈ USD 10,892.
Often Absorbed Off-Plan
On new launches, developers frequently offer a full or partial DLD fee waiver as a sales incentive. Get the waiver written into the SPA, not just the brochure.
DLD Admin, Title Deed, and Trustee Office Fees
Beyond the 4%, a fixed set of administrative charges applies to every transfer. They are small but real, and your quote should itemise each one.
Title Deed and Map Fees
Roughly AED 580 ≈ USD 158. The DLD schedule lists an AED 250 ≈ USD 68 title deed certificate, an AED 250 ≈ USD 68 property map, and the AED 10 ≈ USD 3 knowledge and innovation fees. Trustee centres often quote one bundled figure: around AED 580 ≈ USD 158 for an apartment or office, AED 430 ≈ USD 117 for land, and AED 40 ≈ USD 11 for off-plan.
Registration Trustee Fee
Every transfer runs through a DLD-authorised Real Estate Registration Trustee centre: AED 4,000 ≈ USD 1,089 plus 5% VAT, so AED 4,200 ≈ USD 1,144, on any sale at or above AED 500,000 ≈ USD 136,147, and AED 2,000 ≈ USD 545 plus VAT, so AED 2,100 ≈ USD 572, below that. A buyer cost.
Mortgage Trustee Service Fee
AED 4,000 ≈ USD 1,089 plus VAT on a standard mortgage, and AED 5,000 ≈ USD 1,361 plus VAT, so AED 5,250 ≈ USD 1,430, on an off-plan mortgage registered through Oqood. Register the sale and the mortgage on the same day and the registrar fee on the mortgage side is waived.
Check the live trustee schedule at the centre on the day, because the DLD can update these rates without long notice.
Commission and Mortgage
Agency Commission, the NOC, and Mortgage Costs
Two cost groups depend on how you buy: commission and the NOC on the secondary market, and a further layer of 2 to 3% of the price if you finance through a UAE bank.
Agency Commission: 2%
There is no statutory rate, but the recognised market standard for a secondary residential sale is 2% plus VAT on the commission, an effective 2.1%. On an AED 2M ≈ USD 545K apartment that is AED 40,000 ≈ USD 10,892 plus AED 2,000 ≈ USD 545 VAT, so AED 42,000 ≈ USD 11,436. The brokerage must be VAT-registered and issue a tax invoice with its TRN.
Who Pays the Commission
Secondary market: almost always the buyer, unless the seller signed an exclusive listing. Off-plan direct from the developer: the developer, and the buyer pays nothing. Off-plan resale (assignment): the buyer pays 2% plus VAT to the broker on top of any developer transfer fee.
Developer NOC
Before a resale completes, the master developer issues an NOC confirming service charges are settled: AED 500 to 5,000 ≈ USD 136 to 1,361, most often AED 1,000 to 3,000 ≈ USD 272 to 817, and as high as AED 10,000 to 15,000 ≈ USD 2,723 to 4,084 at luxury and branded developments. Usually seller-paid but negotiable, so state the payer in the MOU. It is valid for 90 days.
Off-Plan Assignment Fee
Selling an off-plan unit before handover triggers a developer transfer or assignment fee, separate from the NOC, typically 2 to 4% of the original price. Most SPAs lock assignment until 30 to 40% of the price is paid.
Mortgage Costs
DLD Mortgage Registration
0.25% of the loan plus a widely quoted AED 290 ≈ USD 79 trustee admin charge. On an AED 1.6M ≈ USD 436K loan, that is AED 4,000 ≈ USD 1,089 plus AED 290 ≈ USD 79, so AED 4,290 ≈ USD 1,168. The AED 290 ≈ USD 79 is bundled by trustees rather than listed as a separate DLD item, so treat it as standard market practice.
Bank Arrangement Fee
0 to 1% plus VAT, usually around 1% of the loan and often waived during promotions, so negotiate it. The early settlement penalty is capped by the Central Bank at 1% of the outstanding balance or AED 10,000 ≈ USD 2,723, whichever is lower.
Property Valuation
AED 2,500 to 3,500 ≈ USD 681 to 953, paid to the bank's panel valuer before approval.
Life and Property Insurance
Mandatory. Life cover assigned to the bank runs about 0.4 to 0.7% of the outstanding balance a year, falling as the loan amortises; building insurance runs AED 1,000 to 3,000 ≈ USD 272 to 817 a year. Source both independently if the bank's bundle costs more.
Mortgage Broker Fees
Usually paid by the lender as a referral fee, not by you. Ask whether the broker charges a separate retainer.
Loan-to-Value Limits by Buyer
UAE National, First Home
Up to AED 5M ≈ USD 1.36M: 85% LTV. Above AED 5M ≈ USD 1.36M: 75%.
UAE National, Second Property
Any value: 65% LTV.
Expat Resident, First Home
Up to AED 5M ≈ USD 1.36M: 80% LTV. Above AED 5M ≈ USD 1.36M: 70%.
Expat Resident, Second Property
Any value: 60% LTV.
Any Buyer, Off-Plan
Any value: 50% LTV.
Non-Resident, in Practice
Any value: 50 to 65% LTV.
Maximum tenor is 25 years, the debt burden ratio is capped at 50% of gross monthly income, and maximum financing is 7 times annual income for expats and 8 times for UAE nationals.
Since February 2025, banks can no longer finance the DLD fee, the commission, or the registration costs as part of the loan. A buyer who once financed roughly 5% of the property value in fees now has to find it in cash on closing day. If that money comes from abroad, the guides to international bank transfers for Dubai property and buying Dubai property with cryptocurrency show how not to lose more to FX spreads than you save on fees.
Legal and Ongoing
Conveyancing, Legal Fees, and Ongoing Ownership Costs
Conveyancing is not legally required, but it is strongly recommended for first-time, international, and mortgaged purchases: AED 5,000 to 10,000 ≈ USD 1,361 to 2,723 for a residential deal, up to AED 15,000 ≈ USD 4,084 for complex ones and AED 25,000 ≈ USD 6,807 for commercial conveyancing, with 5% VAT on top.
Remote buyers add a power of attorney at AED 1,000 to 3,000 ≈ USD 272 to 817, plus another AED 1,000 to 3,000 ≈ USD 272 to 817 for notarisation and certified Arabic translation if the documents are not in English or Arabic.
Ongoing Costs to Budget From Day One
Service Charges
Charged annually under Dubai Law No. 6 of 2019 as unit area times the approved rate, with budgets cleared through the Mollak system before owners are billed. Check your building's exact rate on the DLD Service Charge Index before the MOU. Typical ranges per sq ft: AED 8 to 16 ≈ USD 2.2 to 4.4 in budget communities, AED 15 to 22 ≈ USD 4.1 to 6.0 mid-market, AED 22 to 35 ≈ USD 6.0 to 9.5 prime, AED 40 to 70 ≈ USD 10.9 to 19.1 ultra-prime and branded, and AED 2 to 5 ≈ USD 0.5 to 1.4 in standard villa communities.
Cooling and Chiller Fees
Most modern buildings use district cooling from Empower, Emicool, or Tabreed. The capacity charge is around AED 750 ≈ USD 204 per refrigeration ton a year, billed monthly in advance, so a one or two-bedroom apartment runs about AED 3,000 to 6,000 ≈ USD 817 to 1,634 a year, payable by the owner whether occupied or not. Consumption, around 0.56 fils per RT-hour, is usually paid by the occupant.
DEWA Connection
About AED 2,130 ≈ USD 580 for an apartment: a refundable AED 2,000 ≈ USD 545 deposit (AED 4,000 ≈ USD 1,089 for a villa), an AED 100 ≈ USD 27 activation fee (AED 300 ≈ USD 82 for villas), and the two AED 10 ≈ USD 3 fees. A 5% municipality housing fee is then added to every DEWA bill based on the property's rental value, with UAE nationals exempt.
Want an itemised cost breakdown for a specific property before you sign? Ask me about your buying costs on WhatsApp
Off-Plan, Ready, and Tax
Off-Plan, Ready, and the Taxes You Will Not Pay
Dubai charges no annual property tax, no capital gains tax, no inheritance tax, and no personal income tax on rent for individual owners. The 9% federal corporate tax applies only if you hold the property through a licensed company with profits above AED 375,000 ≈ USD 102,110.
Residential property is VAT-free for the buyer: the first sale of a new home within three years of completion is zero-rated, and later residential sales and leases are exempt. Commercial property carries 5% VAT, paid by the buyer to the FTA before transfer, and services attached to a residential purchase, such as agency, conveyancing, and management, carry 5% VAT.
Off-Plan or Ready: Two Cost Pictures
Off-Plan, Oqood Registration
The 4% DLD fee at Oqood registration, an AED 1,000 ≈ USD 272 developer self-registration fee, and the two AED 10 ≈ USD 3 fees, with maps and the title deed at AED 250 ≈ USD 68 each when Oqood converts at handover. The developer usually pays the commission, saving you 2.1%, DLD waivers are common at launch, and 60/40, 70/30, or post-handover plans deferring up to three years at zero interest spread the rest. Off-plan mortgages are capped at 50% LTV, so most off-plan is funded through the developer plan. Day-one outlay, structured well: under 2% of the price plus the first staged payment.
Ready, Secondary Market
The full 4% DLD fee, the 2.1% commission, the AED 4,200 ≈ USD 1,144 trustee fee, the NOC, and conveyancing, all settled in one transaction at the trustee office, with the Title Deed issued the same day. Day-one outlay: 6.5 to 7% of the price in cash, plus your down payment if mortgaged.
The fee schedule itself is almost identical either way; what changes is when you pay it. Every other stage of the purchase is mapped in my Dubai real estate guide library.
Worked Example
Worked Example: An AED 2M ≈ USD 545K Apartment
A ready secondary apartment at AED 2M ≈ USD 545K, bought by an expat resident at the higher trustee tier, first in cash and then with an AED 1.6M ≈ USD 436K loan at 80% LTV.
Cash Buyer
DLD Transfer Fee, 4%
AED 80,000 ≈ USD 21,784
Trustee Office Fee
AED 4,200 ≈ USD 1,144
Title Deed and Admin
AED 580 ≈ USD 158
Developer NOC, Mid-Range
AED 1,500 ≈ USD 408
Agency Commission, 2% Plus VAT
AED 42,000 ≈ USD 11,436
Conveyancing
AED 7,500 ≈ USD 2,042
DEWA Connection
AED 2,130 ≈ USD 580
Total Transaction Cost
AED 137,910 ≈ USD 37,552, about 6.9% of the price.
Mortgage Buyer
Down Payment, 20% Equity
AED 400,000 ≈ USD 108,918
All Cash-Buyer Costs Above
AED 137,910 ≈ USD 37,552
Mortgage Registration
AED 4,290 ≈ USD 1,168: 0.25% of the loan plus AED 290 ≈ USD 79.
Mortgage Trustee Fee
AED 4,200 ≈ USD 1,144
Bank Arrangement, About 1% Plus VAT
AED 16,800 ≈ USD 4,575
Property Valuation
AED 3,000 ≈ USD 817
Year-One Life Insurance, About 0.5%
AED 8,000 ≈ USD 2,178
Year-One Property Insurance
AED 2,000 ≈ USD 545
Total Day-One Cash
AED 576,200 ≈ USD 156,896, of which about AED 176,200 ≈ USD 47,978, or 8.8%, is fees and insurance.
Before February 2025, this buyer could have financed roughly AED 126,000 ≈ USD 34,309 of those fees through the loan. That option is closed, which makes it the most important budgeting change for Dubai buyers today: build the full fee layer into your day-one liquidity.
FAQs
Dubai Property Buying Costs Frequently Asked Questions
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 ≈ USD 1,089 plus VAT (AED 4,200 ≈ USD 1,144) on any sale at or above AED 500,000 ≈ USD 136,147, and AED 2,000 ≈ USD 545 plus VAT (AED 2,100 ≈ USD 572) 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 ≈ USD 79, a mortgage trustee fee of about AED 4,200 ≈ USD 1,144, a bank arrangement fee up to 1 percent plus VAT, a valuation of AED 2,500 to 3,500 ≈ USD 681 to 953, 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 the 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.
Your Advisor
Tohid Fetrat
For any questions about your real estate investment, message or call me directly. You will always reach me personally, never a call center or sales team.