Buying guide
The Real Cost of Buying Property in Dubai: Fees, Charges and Annual Costs
What you pay on top of the price, what you pay each year, and how to see it all before you commit.
What you pay on top of the price, what you pay each year, and how to see it all before you commit.
By Staff Writer
Last reviewed
6 min read
The price on a listing is not the full cost of buying. The good news is that Dubai’s costs are published and predictable. Know them before you commit and there are no surprises at registration.
One-off costs when you buy
| Cost | What it is | Typical amount |
|---|---|---|
| Dubai Land Department registration | The fee to register the sale and issue your title. | Commonly cited as 4% of the property value. See the official fee page (Dubai Land Department, opens in a new tab). |
| Registration trustee fee | Paid at the trustee office that processes the transfer. | A fixed fee plus VAT. Confirm the current amount for your price band. |
| Agency fee | Paid to the adviser or agency on a resale, where one is used. | Agreed in writing beforehand. Often 2% on resales. Off-plan fees are usually paid by the developer. |
| Mortgage costs | Bank arrangement fee, valuation and mortgage registration if you borrow. | Varies by lender. Ask for the full fee schedule. |
| Title or off-plan registration | Small administrative charges for the title deed or the interim register. | Listed in the DLD fee calculator (Dubai Land Department, opens in a new tab). |
As a rule of thumb, set aside roughly 6 per cent of the price on top for transaction costs when you buy a resale. Your adviser should give you an itemised figure before you reserve.
A worked example
On a AED 1,500,000 apartment, a 4 per cent registration fee is AED 60,000. Add a trustee fee and, on a resale, an agency fee of around AED 30,000 if 2 per cent applies, and your transaction costs would be around AED 95,000. That is an illustration, not a quote: run your own numbers with the yield calculator.
Ongoing costs of owning
- Service charge, set per square foot and published for many buildings in the service charge index (Dubai Land Department, opens in a new tab).
- Building and contents insurance, where required by your lender or the owners' association.
- District cooling or utility charges, depending on the community.
- Routine maintenance and any agreed repairs inside your unit.
- Property management fees, if you let the home through a manager.
What about tax?
The UAE Government’s taxation page (The Official Portal of the UAE Government (u.ae), opens in a new tab) states that the UAE does not levy income tax on individuals, and that VAT is 5 per cent on goods and services. That is a real attraction for buyers. But tax depends on your own residency and the country you are a tax resident of, and rules can change. Speak to a qualified tax adviser before you buy.
Buying with a mortgage
Mortgage buyers add valuation, bank fees and the mortgage registration. Read the Dubai mortgage guide for loan-to-value limits and the extra cash you will need on day one.
How to keep costs sensible
- Ask for an itemised cost sheet before you reserve any unit.
- Compare service charges between buildings, not only prices.
- Read the payment plan carefully if you buy off-plan, including any fee due at registration.
- Pay through escrow or the trustee, never to an individual.
Frequently asked questions
How much does it cost to buy a property in Dubai on top of the price?
Plan for the Dubai Land Department registration fee, the registration trustee fee, any agency fee, and, if you borrow, mortgage and valuation costs. The registration fee is commonly cited as 4 per cent of the property value. Use the Dubai Land Department fee calculator for your exact figures.
Who pays the Dubai Land Department fee, the buyer or the seller?
It is commonly paid by the buyer, but the split is a matter for the contract. Confirm who pays what in writing before you sign.
Are there annual costs of owning property in Dubai?
Yes. The main ongoing cost is the service charge, which funds building maintenance and common areas and is set per square foot. Other costs can include insurance, cooling charges in some districts and routine maintenance.
Is there an annual property tax in Dubai?
The UAE government's taxation page states that the UAE does not levy income tax on individuals and applies 5 per cent VAT on goods and services. It does not describe an annual property tax for residential owners. Rules can change and your circumstances matter, so confirm your position with a qualified tax adviser, including the rules in your home country.
Do off-plan buyers pay the same fees?
The registration fee still applies, and off-plan sales are recorded on the interim register. The payment schedule means you pay in stages, so budget for each instalment as well as the fees.
Sources
- Property sale registration (service fees) (opens in a new tab)Dubai Land Department. Checked 23 September 2026.
- Procedure fee calculator (opens in a new tab)Dubai Land Department. Checked 23 September 2026.
- Service Charge Index (opens in a new tab)Dubai Land Department. Checked 23 September 2026.
- Taxation in the UAE (opens in a new tab)The Official Portal of the UAE Government (u.ae). Checked 16 October 2026.
This guide has been prepared by SkyBuild Real Estate for general information only. It is not investment, legal, tax or financial advice, and should not be relied on as the sole basis for a transaction decision. Rules, fees and eligibility criteria change. Confirm current requirements with the relevant authority, and take independent professional advice on your own circumstances. Sources were checked on the dates shown.
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