Dubai Property Buying Costs Explained: DLD Fees, Commission and More (2026)
Updated · Property Demand
On top of the purchase price, budget roughly 7% to 8% for fees when buying a ready property in Dubai with a mortgage, and around 6% to 7% for a cash purchase. Here is what each cost is.
Dubai Land Department (DLD) transfer fee: 4%
The largest fee is the DLD transfer fee of 4% of the purchase price. The law describes it as shared between buyer and seller, but in practice the buyer usually pays it in full on resale purchases. On a AED 2,000,000 apartment the fee is AED 80,000. Developers sometimes cover part or all of it on new launches.
Trustee office and title deed fees
- Registration trustee fee: AED 4,000 + VAT for properties AED 500,000 and above; AED 2,000 + VAT below that.
- Title deed issuance: a few hundred dirhams.
Agent commission: usually 2%
Buyer's agents in Dubai commonly charge 2% of the purchase price plus 5% VAT. Commission is negotiable and is not usually charged when buying directly from a developer.
Mortgage costs
- Mortgage registration: 0.25% of the loan amount, plus a trustee fee.
- Bank arrangement fee: often up to 1% of the loan.
- Valuation fee: typically AED 2,500 to AED 3,500.
Ongoing costs
Service charges cover building maintenance, security and amenities. They are set per square foot per year and approved by RERA. Check the RERA Service Charge Index for the specific building before you buy. Owners also pay DEWA utility connection and housing fees.
Worked example: AED 2,000,000 apartment with a mortgage
- DLD transfer fee (4%): AED 80,000
- Agent commission (2% + VAT): AED 42,000
- Trustee fee: AED 4,200
- Mortgage registration (0.25% of a AED 1,600,000 loan): AED 4,000
- Bank arrangement and valuation: about AED 10,000 to AED 19,000
Total: about AED 140,000 to AED 150,000, or roughly 7% of the price. Figures are estimates; your agent and bank will confirm exact amounts.
Frequently asked questions
How much is the DLD fee in Dubai?
The Dubai Land Department transfer fee is 4% of the purchase price. On resale purchases the buyer usually pays the full 4%.
What are the total costs of buying property in Dubai?
Expect about 6% to 8% of the purchase price in fees: the 4% DLD fee, around 2% agent commission plus VAT, trustee and title deed fees, and mortgage fees if you borrow.
Is there property tax in Dubai?
There is no annual property tax or capital gains tax on residential property for individuals in Dubai. Owners pay service charges and a municipality housing fee through their DEWA bill.
General information, not legal, tax or financial advice. Fees and rules change; confirm with the Dubai Land Department, your bank or a licensed professional.
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