Property Buyer's Guide

Buying Property in Dubai: What It Actually Costs

Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.

Last updated: 17 May 2026

Budget 8–10% above the purchase price for taxes and fees when buying property in Dubai. The calculator below gives you an exact figure for your situation.

Dubai Land Department registration fee — 4% of the transaction value applies to completed freehold transfers and to Oqood provisional registration on the usual off-plan path. Ancillary DLD/admin lines differ — pick the registration path below (ready resale vs off-plan); developer VAT-first primary supply is not modeled here.

Rates vary by region. Dubai has 2 regions with different DLD Registration Fee rates. The rates shown below are the national default. Select your specific region in the calculator for accurate rates.

DLD Registration Fee is a flat rate of 4.00% of the purchase price.

More calculators

Full ROI calculator Track property

On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.

Transfer / conveyancing fees

These fees apply whether you're paying cash or taking out a bond.

Title Deed Issuance Fee
Title deed issuance charge at registration (typically AED 250 for standard sale transfers at the trustee office).
AED 250.00
Property Map Fee
Official property map / site plan issuance (typically AED 250 for villa or apartment).
AED 250.00
Knowledge Fee
Dubai Land Department knowledge fee (typically AED 10).
AED 10.00
Innovation Fee
Dubai Land Department innovation fee (typically AED 10).
AED 10.00
Trustee / Registration Office Fee
DLD trustee-centre facilitation fee — AED 2,000 + 5% VAT below AED 500,000 sale value; AED 4,000 + 5% VAT at AED 500,000 and above (VAT-inclusive totals modeled).
AED 2,100.00
NOC (No Objection Certificate)
Certificate from the developer confirming no outstanding service charges. Typically AED 500–5,000 depending on the developer — usually paid by the seller on resale.
AED 1,000.00

Bond registration fees (only if you're taking a bond)

If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.

Mortgage Registration Fee
Dubai Land Department levy on registering the mortgage—typically 0.25% of the loan amount. Separate fixed DLD admin lines are modeled as “Mortgage registration — DLD admin”. Confirm the current tariff with DLD / your bank.
0.25% of value
Mortgage Registration — DLD Admin (Title, Map, Knowledge, Innovation)
Fixed DLD-side charges commonly quoted alongside mortgage registration: title deed AED 250 + map AED 250 + knowledge AED 10 + innovation AED 10 (= AED 520). Verify against your registration fee breakdown.
AED 520.00
Bank Valuation Fee
Property valuation required by the mortgage lender.
AED 3,000.00

Agent Commission

Agent commission in Dubai is typically 2% of the purchase price + 5% VAT. The buyer pays on resale properties. For off-plan purchases, the developer pays the agent.

Paid by: buyer
VAT applies: Yes (5%)
Typical rates:
Residential: 2.0%Apartment: 2.0%Commercial: 2.0%Airbnb: 2.0%

The purchase price is just the beginning. As a property owner in Dubai, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.

  • Municipality Housing Fee
    5% of the annual rental value as determined by RERA. Billed monthly via DEWA to the property owner — the owner is the liable party even if the cost is passed to the tenant via the lease agreement.
    annual
    Typically escalates ~3% per year
  • Property Insurance
    Building insurance covering structure and common areas. Typically 0.1–0.15% of property value per year. AED 500–2,500/year for apartments.
    annual
    Typically escalates ~3% per year
  • Maintenance Reserve
    Budget for interior repairs and maintenance beyond what service charges cover. Typically 1–2% of property value per year.
    annual
    Typically escalates ~3% per year

Additional costs for Residential (Villa / Townhouse) properties

  • Community Service Charge
    Community maintenance charge for gated communities. Typically AED 3–6 per sqft/year for villas/townhouses (AED 6,000–12,000 for a 2,000 sqft villa).
    Charged annual

Additional costs for Apartment properties

  • Service Charge
    Annual service charge covering building maintenance, communal areas, and facilities. Typically AED 10–25 per sqft/year (AED 10,000–25,000 for a 1,000 sqft apartment).
    Charged annual

Additional costs for Commercial properties

  • Service Charge
    Building service charge for commercial units. Typically AED 15–30 per sqft/year.
    Charged annual

Additional costs for Holiday Home (Short-Term Rental) properties

  • Service Charge
    Building service charge — same as standard apartment.
    Charged annual
  • Holiday Home Permit (DET) — recurring
    DET licence/holiday-home permit recurring scale is bedroom-based (~AED 370 per bedroom/year is a mid-market illustrative bracket). Tune to your unit and latest DET tariff.
    Charged annual
  • Holiday Home Licence — First-Year / Setup (Indicative)
    Industry guides cite ~AED 1,520 first-year issuance/bundle for the DET holiday-home track. Modeling does not spike year 1 automatically — amortize mentally (÷5 ≈ AED 304/year) or spike once in inputs if Year 1 is material.
    Charged annual
  • Municipality Fee on Bookings
    Licensed holiday-home operations are often quoted ~10% of booking revenues — confirm DET / Dubai Municipality publications for licensed STR in your year.
  • Tourism Dirham
    AED 10–15 per room per occupied night. Auto-calculated from your occupancy rate. Platforms like Airbnb may collect this from guests — set to 0 if the platform handles it.

Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.

Good news — there is no Capital Gains Tax in Dubai. The UAE has no personal income tax or capital gains tax on property sales.

The UAE does not impose capital gains tax on property sales for individuals. LLC / juridical owners may owe UAE corporate tax on rental profits (modeled separately in projections when Owner type is LLC) — distinct from disposal taxes.

When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.

Agent Commission
Real estate agent commission in Dubai is typically 2% of the sale price + 5% VAT. Paid by the seller.
2.0%
NOC Fee (Selling)
No Objection Certificate from the developer — required before selling. Typically AED 500–5,000.
AED 1,000.00
Mortgage Discharge Fee
Fee for discharging the mortgage with the Dubai Land Department. AED 1,290 for conventional, AED 1,560 for Islamic mortgage.
Only applies if you have a bond
AED 1,290.00

Good news: Foreigners of any nationality can buy freehold property in Dubai with no restrictions, no additional taxes, and no local partner required. The same 4% DLD fee applies to all buyers.

  • 1 Freehold areas only: Foreign buyers can purchase 100% freehold ownership in 60+ designated areas including Dubai Marina, Downtown Dubai, Palm Jumeirah, JVC, Dubai Hills Estate, Business Bay, and JLT. Outside these areas, only leasehold (up to 99 years) is available.
  • 2 No residency required: You do not need a UAE visa or Emirates ID to purchase property. A valid passport is sufficient. However, property purchases can qualify you for residency — AED 750,000+ for a 2-year visa, AED 2,000,000+ for a 10-year Golden Visa.
  • 3 Financing available: Non-residents can obtain mortgages from UAE banks with LTV up to 50–60% for ready properties. Interest rates are typically 3.5–5.5%. Minimum income requirements vary by lender (AED 15,000–25,000/month).
  • 4 No taxes on gains: There is no capital gains tax, no personal income tax, and no withholding tax on property sale proceeds for foreign sellers.
  • 5 Corporate ownership: If purchasing through an LLC mainland entity, UAE corporate tax (9% standard rate from 2023) applies to taxable profits above AED 375,000 per tax period after allowable deductions - not crude revenue gates. Passive individual ownership falls outside CT; mainland LLC landlords are modeled with a simplified 9% tax on taxable profit above AED 375,000 in projections when Owner type is LLC.
Important: Purchasing property outside designated freehold areas as a foreigner can be declared null and void by Dubai courts. Always confirm the property is in a freehold zone before proceeding.

Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Dubai.

Residential (Villa / Townhouse)
Agent commission
2.00%
Vacancy rate
6%
Rent escalation
6.0% p.a.
Extra costs: Community Service Charge
Apartment
Agent commission
2.00%
Vacancy rate
12%
Rent escalation
5.0% p.a.
Extra costs: Service Charge
Commercial
Agent commission
2.00%
Vacancy rate
15%
Rent escalation
4.0% p.a.
Extra costs: Service Charge
Holiday Home (Short-Term Rental)
Agent commission
2.00%
Vacancy rate
25%
Rent escalation
5.0% p.a.
Extra costs: Service Charge, Holiday Home Permit (DET) — recurring, Holiday Home Licence — First-Year / Setup (Indicative), Municipality Fee on Bookings, Tourism Dirham

Explore Other Markets

Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.

Saudi Arabia England South Africa

Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.

Use the free Dubai ROI calculator →