Key takeaways
- Total acquisition cost is 6–8% above the price on secondary deals, and closer to 4–5% on off-plan launches where the developer pays commission.
- There is no annual property tax, no capital gains tax and no income tax on rent in the UAE.
- Service charges of AED 12–25 per sq ft per year are the largest recurring cost and vary enormously by building.
- Mortgage buyers add roughly 1.25% in bank and registration fees.
One-off costs at purchase
The Dubai Land Department transfer fee is 4% of the purchase price, plus about AED 580 in admin and AED 250 for the title deed. Trustee office fees run AED 2,000–4,200 depending on price band. Agency commission is 2% plus VAT on secondary purchases and typically nil on off-plan, where the developer pays the broker.
On off-plan, the 4% DLD fee is often absorbed or deferred by the developer as a launch incentive — worth negotiating explicitly rather than assuming.
Mortgage-specific costs
Banks charge a 0.5–1% arrangement fee, AED 2,500–3,500 for valuation, and the DLD adds a 0.25% mortgage registration fee plus AED 290. Non-resident lending is available at 50–60% loan-to-value, so plan for a 40–50% deposit plus fees in cash.
Life and property insurance are usually mandatory conditions of the loan and add a few hundred dirhams a month.
Recurring annual costs
Service charges are set per building by the owners association and approved by RERA — AED 12–18 per sq ft in mainstream communities, AED 20–35 in prime towers with extensive amenities. This single number can move a net yield by more than a full percentage point, so check the RERA service charge index before you buy, not after.
Add DEWA connection deposits, chiller registration where cooling is separately billed, and 5% VAT on management and maintenance services. Long-term residential rent itself is VAT-exempt.
Costs at exit
Selling a ready property costs 2% agency commission plus a developer NOC fee of AED 500–5,000 and a small DLD transfer admin charge — usually settled by the buyer. Assigning an off-plan SPA before handover attracts a developer transfer fee, commonly 2–4% of the original price, and requires 30–40% of the price to have been paid.
There is no capital gains tax on the disposal, though your country of residence may tax the gain. Take local advice before you sell, not after.
Frequently asked questions
What is the total cost of buying property in Dubai?
Budget 6–8% above the purchase price on secondary deals: 4% DLD transfer fee, roughly AED 4,200 in DLD and trustee admin, 2% agency commission plus VAT, and conveyancing. Off-plan launches are usually cheaper because the developer pays commission.
Are there annual property taxes in Dubai?
No. The UAE has no annual property tax, no capital gains tax and no income tax on rental income. Your recurring cost is the building's service charge, typically AED 12–25 per sq ft per year.
Who pays the 4% DLD fee in Dubai?
Legally the buyer, though it is often split or absorbed by the developer as an off-plan incentive. Always confirm in writing which party settles it.
How much are service charges in Dubai?
AED 12–18 per sq ft per year in mainstream communities and AED 20–35 in prime amenity-heavy towers. RERA publishes an approved index per building.
Next in this guide
How to Buy Property in Dubai as a Foreigner
Step 5 — ReturnsDubai Rental Yields Explained, By Area and Asset Type
Step 6 — FinanceDubai Mortgages for Non-Residents: What Banks Actually Lend