All the Costs of Buying: the Complete List
The advertised price is not the final figure. The difference can reach several percent, and it is better to know it before paying the deposit than after.
DLD government fees
- Transfer fee — 4% of the property price. Formally 2% from the seller and 2% from the buyer; in practice the buyer usually pays all of it, and the contract records this
- Title deed issuance — AED 250
- Apartment or villa map — AED 250
- Knowledge fee and innovation fee — AED 10 each
- Off-plan — Oqood registration: the 4% is paid at registration and is not charged again at handover; the separate processing fee is confirmed at the date of the deal
Registration trustee
Resale transactions go through a registration trustee office (a DLD service partner). Its fee is AED 4,000 plus VAT for a price of AED 500,000 or more, and AED 2,000 plus VAT below that.
Other costs
- Agent commission — by agreement, fixed before signing
- Developer's NOC for a resale — at the developer's tariff
- Valuation and bank fees with a mortgage
- Insurance, if the bank requires it
- Legalisation and translation of the power of attorney, if the buyer is abroad
Example: a property at AED 2 million
- DLD fee 4% — AED 80,000
- Trustee AED 4,000 + 5% VAT — AED 4,200
- Title deed 250 + map 250 + fees 10 + 10 — AED 520
- Total government and mandatory fees — AED 84,720
On top: the developer's NOC, the agent's commission and mortgage costs. As a rough guide, the full transaction comes to 7–8% above the price with cash and 8–9% with a mortgage.
What to have ready
Funds for the deal and separately for the fees: they are paid from your own money and are not part of the mortgage. Plus proof of the source of funds for the bank handling the payment — this question comes up almost always and is settled in advance.
Count before the deposit
The full budget is assembled before money is paid, not along the way. It is not for show: if the fee amount is short on registration day, the transfer is not registered, and the contract deadlines keep running.
Mortgages, separately
Fees and commissions are paid from your own funds and, as a rule, are not financed. So "the down payment" and "the cash you need on hand" are different figures, and the second is noticeably larger. A mortgage adds costs of its own: valuation, bank arrangement fee, mortgage registration at DLD and insurance.
Costs after the purchase
Annual service charges at the project's rate — the amount depends on the property and is checked before the deal, because the seller's arrears pass with the property. There is no annual tax on owning residential property in Dubai, but there is a Dubai Municipality housing fee, charged through the DEWA utility account as a share of the property's annual rental value; the rate, the base and who bears it when the unit is let are confirmed at the date of the deal. Rental income and a future sale are taxed under the law of the country where you are tax resident.
Frequently asked questions
Can the fees be included in the mortgage?
As a rule, no: the bank finances the property price, and the fees are paid from your own funds. Factor this into the down payment calculation.
Who pays the agent's commission?
By agreement between the parties and according to the practice of the deal. It is fixed before signing.
Is there a purchase tax?
There is no separate tax on buying a home; the main payment is the 4% DLD fee. VAT at 5% applies to services (trustee, agent), not to the price of a residential resale property.
This is a general framework, not legal advice. UAE law changes, and procedures differ between emirates and free zones. We review each situation individually.