The cost of buying property in Dubai, fee by fee

Fees on a ready home

A ready home is one that is built and has a title deed. When you buy one from its owner, five fees apply. Three go to the Dubai Land Department or its registration trustee, one to your broker and one to the developer of the building.

VAT in the UAE is 5%. It is added to the trustee fee and the agency fee, and to the bank's valuation and arrangement fees if you borrow. The transfer fee and the title deed fees are shown without it.

The transfer fee is a percentage, so it scales with the price. The title deed and trustee fees are fixed, so they weigh more on a cheaper home. That is why the total sits a little under 7% at AED 2,000,000 and a little over it on a smaller purchase: at AED 1,000,000 the same five fees come to about AED 70,720, or 7.1%.

Who pays which fee

By custom the buyer pays the whole 4% transfer fee. The Dubai Land Department's own fee schedule splits it equally between buyer and seller, so a different split is possible if both sides agree to it in Form F, the sale contract.

• Transfer fee: the buyer, by custom
• Title deed and trustee fees: settled at the transfer; our calculator shows them against the buyer
• Agency fee: agreed between you and your broker. 2% plus VAT is the customary rate, not a legal one
• Developer NOC: whoever Form F says. Agree it before you sign

If you are selling, the same schedule applies from the other side of the table. By custom your buyer pays the transfer fee, and your own agency fee is agreed in writing before the home is listed.

The NOC matters to both sides. Under Dubai Law No. 6 of 2019 a home may not be sold while its service charges are unpaid, so a seller settles them before the developer issues the certificate. Agree in Form F who pays the NOC fee, and ask for the figure before you sign rather than at the transfer.

A worked example at AED 2,000,000

Take a ready apartment at AED 2,000,000, bought with cash and no mortgage. The price is above AED 500,000, so the higher trustee fee applies. The NOC is shown at the top of the developer's range.

The fees come to about AED 131,720, which is 6.6% of the price. Add a mortgage and the bank's fees and the DLD registration fee come on top. The calculator further down runs the same sum for any price.

Fees on an off-plan home

A home bought from the developer before completion is registered on the Dubai Land Department's Oqood system rather than transferred at a trustee. The fee is the same 4% of the price, plus AED 10 knowledge and AED 10 innovation fees. At AED 2,000,000 that is AED 80,000 plus AED 20.

• No trustee or title deed fee at this stage. Our calculator shows only the Oqood fee and the AED 20 admin fees on an off-plan purchase. The title deed is issued once the project has its completion certificate
• No developer NOC. There is no previous owner on a first sale from the developer
• Developer administration fees. Some developers charge their own, and they vary. Ask for them in writing before you reserve

Buying off-plan in Dubai covers the payment plan, the escrow account that holds your instalments, and the checks to make before you reserve.

Fees when you buy with a mortgage

There is no Central Bank cap on arrangement fees; each bank sets its own, so compare them. Registration and a 1% arrangement fee together add about 1.3% of the loan, plus the valuation fee.

On the AED 2,000,000 example above, an expatriate's first-home loan of AED 1,600,000 adds AED 4,270 in DLD registration, AED 3,150 for a valuation at AED 3,000 plus VAT, and AED 16,800 for an arrangement fee of 1% plus VAT. The fees rise from about AED 131,720 to about AED 155,940.

If you repay early, the Central Bank of the UAE caps the early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is lower. How mortgages work in Dubai sets out the loan limits and the deposit you need.

Work out your costs

Costs once you own

Owning carries running costs that are not part of the purchase but belong in the same budget.

• Service charges: an annual charge for the upkeep of shared areas in a managed building or community. The rate differs by building. Under Dubai Law No. 6 of 2019 it needs RERA's approval on a budget approved by a certified audit firm, and a home cannot be sold while its service charges are unpaid. See service charges in Dubai
• Income tax: the UAE does not levy income tax on individuals. Rental income from property held in your own name is not subject to corporate tax when the activity does not require a licence, under Cabinet Decision No. 49 of 2023
• VAT on letting: residential leases are generally exempt. The first supply of a new residential property within three years of completion is zero-rated
• Moving and furnishing: there is no official figure. Budget for them alongside the fees

Ask for the current service charge on any home you consider, and ask before you make the offer rather than after.

How Enesco shows the cost

Every home on this site shows the price plus the Dubai Land Department, trustee, agency and bank fees before you book a viewing. The figures come from the same sources as this guide, and the buying costs calculator lets you run any price, ready or off-plan, with or without a loan. If a home needs a developer NOC, who pays it is settled before Form F is signed, not after.

Owners who let through us get the same approach after the purchase: rent collection, maintenance and renewals handled by the team that found the tenant, with the costs set out before you commit. Renting out property in Dubai explains the rules a landlord works under.

Questions buyers ask