Buying Property in Dubai (UAE): 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.
Budget 8–10% above the purchase price for taxes and fees when buying property in Dubai (UAE). The calculator below gives you an exact figure for your situation.
DLD Registration Fee
Dubai Land Department registration fee of 4% on all property purchases. No progressive brackets — flat rate regardless of property value. No surcharges for foreign buyers.
DLD Registration Fee is a flat rate of 4.00% of the purchase price.
What You'll Pay at Transfer
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.
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.
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.
Your Monthly and Annual Costs as an Owner
The purchase price is just the beginning. As a property owner in Dubai (UAE), you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualMunicipality Housing Fee5% 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.Typically escalates ~3% per year
- annualProperty InsuranceBuilding insurance covering structure and common areas. Typically 0.1–0.2% of property value per year.Typically escalates ~3% per year
- annualMaintenance ReserveBudget for interior repairs and maintenance beyond what service charges cover. Typically 1–2% of property value per year.Typically escalates ~3% per year
Additional costs for Residential (Villa / Townhouse) properties
- Community Service ChargeCommunity maintenance charge for gated communities. Typically AED 2–7 per sqft for villas/townhouses.Charged annual
Additional costs for Apartment properties
- Service ChargeAnnual service charge covering building maintenance, communal areas, and facilities. Varies significantly by area — AED 10–30 per sqft.Charged annual
Additional costs for Commercial properties
- Service ChargeBuilding service charge for commercial units.Charged annual
Additional costs for Holiday Home (Short-Term Rental) properties
- Service ChargeBuilding service charge — same as standard apartment.Charged annual
- Holiday Home Permit (DET)Annual permit from the Department of Economy & Tourism. Required for all short-term rental operations in Dubai.Charged annual
- Municipality Fee on Bookings10% municipality fee charged on short-term rental booking revenues. Separate from the general 5% housing fee. Automatically scales with your rental income in projections.
- Tourism DirhamAED 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.
When You Sell: Capital Gains Tax
Good news — there is no Capital Gains Tax in Dubai (UAE). 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. There is no withholding tax on sale proceeds for foreign sellers.
Costs of Selling Your Property
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.
Buying as a Foreign National
- 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 buying through an LLC, rental income exceeding AED 375,000 net profit is subject to 9% corporate tax (introduced 2023). Individual ownership has no such tax.
Which Property Type Is Right for You?
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 (UAE).
- Agent commission
- 2.00%
- Vacancy rate
- 6%
- Rent escalation
- 6.0% p.a.
- Agent commission
- 2.00%
- Vacancy rate
- 12%
- Rent escalation
- 5.0% p.a.
- Agent commission
- 2.00%
- Vacancy rate
- 15%
- Rent escalation
- 4.0% p.a.
- Agent commission
- 2.00%
- Vacancy rate
- 25%
- Rent escalation
- 5.0% p.a.
Ready to Run the Numbers?
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 (UAE) ROI calculator →