Property purchase costs and taxes in Dubai

The costs of buying property in Dubai are lower than in most European countries: additional fees are usually 5–7% of the price, and in the UAE there is no annual property tax and no tax on capital gains from a sale. Below is a summary of fees based on industry sources for 2026; the rates are worth confirming before the transaction.

One-off fees when buying

The Dubai Land Department (DLD) transfer fee is 4% of the property value (in practice it is most often paid by the buyer, but the split depends on the contract), and the DLD registration fee is AED 2,000 for properties up to AED 500,000 and AED 4,000 above that amount. On top of this come the agent’s commission (usually 2% on the resale market, plus VAT, often 0% when buying from a developer), the trustee office fee of AED 2,000–4,000 plus VAT, the developer’s NOC (AED 500–5,000) and the issue of the title deed (AED 250).

When buying with a mortgage

Mortgage registration is 0.25% of the loan amount, and the bank usually charges a 1–2% arrangement fee and a property valuation fee (about AED 2,500–4,000).

Example

When buying a resale apartment for AED 1.5 million: the 4% DLD fee is AED 60,000, the 2% commission is AED 30,000 (plus VAT), and the registration, trustee, NOC and title deed fees come to about AED 10,000–12,000 in total. Altogether about AED 100,000, i.e. about 6–7% of the price.

Annual costs

The owner pays service charges for the upkeep of the building (usually AED 10–15 per square foot per year for standard apartments, and up to AED 40 in some projects), utilities and insurance.

Taxes

In Dubai there is no annual property tax, no tax on capital gains from a sale and no income tax on rental income for individuals, and the sale and rental of residential property are exempt from the 5% VAT. However, the absence of taxes in the UAE does not release you from tax obligations in Poland, so it is worth consulting a tax adviser before buying.

You will find a comparison with the costs in Spain in the article Dubai or Spain?. See also the purchase procedure in Dubai, apartments in Dubai and houses in Dubai. Buying through World Residence is commission-free for the buyer; contact us.

Frequently asked questions

How much is the DLD fee in Dubai?

The Dubai Land Department transfer fee is 4% of the property value, plus a fixed registration fee (AED 2,000 or 4,000). In practice it is most often paid by the buyer, but the split depends on the contract.

Do you pay an annual property tax in Dubai?

No. There is no annual property tax in the UAE; the owner pays service charges for the upkeep of the building.

What are the total costs of buying property in Dubai?

Usually about 5–7% of the property price, including the DLD fee, the agent’s commission and registration fees.