Dubai property buying costs: the 4% DLD fee, and everything around it.
// Short answer
Buying in Dubai costs one large fee and several small ones. The DLD transfer fee is 4% of the sale value, officially split 2% buyer and 2% seller, but generally borne by the buyer. Around it: a trustee fee of AED 4,000 plus VAT, AED 250 for the title deed, a map fee, and 0.25% to register a mortgage. No VAT on a home.
What an agent can charge, who pays it and how to check their licence: real estate agent fees in Dubai.
Rules and rates as of September 2026, for Dubai unless another emirate is named. Freehold areas are extended by amendment and fees are set by each emirate, so check the dated items again before you sign. Every figure links to its source.
On this page
What are the one-off costs of buying property in Dubai?
The 4% DLD transfer fee, a trustee office fee of AED 4,000 plus VAT at AED 500,000 or more (AED 2,000 plus VAT below), the AED 250 title deed, a map fee, AED 10 knowledge and AED 10 innovation fees, and 0.25% of any mortgage. Fees as listed by the DLD in September 2026.
| Cost | Amount | Notes |
|---|---|---|
| DLD transfer fee | 4% of sale value | Officially 2% buyer, 2% seller; PwC says generally borne by the buyer |
| Trustee (service-partner) fee | AED 4,000 + VAT (price AED 500,000 or more); AED 2,000 + VAT below | Resale |
| Title deed | AED 250 | Resale |
| Map fee | AED 225, AED 100 or AED 250 | Depends on land and unit type |
| Knowledge and innovation fees | AED 10 + AED 10 | |
| Mortgage registration | 0.25% of the mortgage value | Only if you borrow |
| VAT on the price | None on residential | Commercial property: 5% |
Sources
Who pays the 4% DLD transfer fee?
Officially the fee is split: 2% from the seller and 2% from the buyer, on a resale and on an off-plan (initial) sale alike. In practice PwC says the fee is generally borne by the purchaser, so a buyer should budget the full 4% unless the contract says otherwise.
Agree in writing who pays which share before the trustee appointment. The DLD collects the fee at the transfer.
Sources
Is there VAT on buying a home in the UAE?
No. The UAE charges VAT at 5%, but supplies of residential property are generally exempt, and the first supply of a residential property within three years of completion is zero-rated. So a buyer of a new or resale home pays no VAT on the price.
Sales and leases of commercial property are taxed at the standard 5%. VAT does apply to service fees such as the trustee fee.
How much is agent commission in Dubai?
There is no cap: under Bylaw No. 85 of 2006 (article 27) the fee is set by agreement, or by prevailing custom if the agreement is silent. The only official figure is an aggregate: the DLD reported 2016 commissions at 2% of the value of recorded deals. That is market convention, not a rule. Agree the commission, and who pays it, in writing before you view.
Licensed brokers also carry anti-money-laundering duties, so expect to show a passport and the source of funds. More: transferring money to the UAE for a property.
Sources
What are the registration fees in Abu Dhabi?
ADREC's rules let its Executive Committee set the fee at not less than 1% and not more than 4% per transaction, split equally between seller and buyer unless agreed otherwise. Commercial sources give 2% as the rate commonly charged, and disagree on who pays it.
DLA Piper also gives 1% to 4%, says the buyer usually pays, and says off-plan transfers are capped at AED 2 million per transaction. The 2% figure was not found on an ADREC page, so confirm the fee for your transaction.
Sources
// Buying in United Arab Emirates?
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See the $99 report, page by pageWho pays the closing costs in Dubai, buyer or seller?
Officially split: the Dubai Land Department charges the 4% transfer fee as 2% to the seller and 2% to the buyer, and on an off-plan sale 2% to the developer and 2% to the purchaser. In practice the buyer often pays all of it, which is market custom, not the rule. There is no tax on the seller's gain for an individual investor.
| Cost | Rate | Who pays | Set by |
|---|---|---|---|
| DLD transfer fee | 4% of the sale value | 2% seller, 2% buyer | Law (DLD) |
| Off-plan Oqood registration | 4% of the sale value | 2% developer, 2% purchaser | Law (DLD) |
| Mortgage registration | 0.25% of the loan | Buyer (the borrower) | Law (DLD) |
| VAT on residential property | Resale exempt; first supply within 3 years zero-rated | No VAT to pay | Law |
| Tax on the gain, individual investor | 0% | No one | Law (Cabinet Decision 49/2023) |
Sources
Frequently Asked Questions
How much is the DLD fee in Dubai?
What is the trustee fee in Dubai?
How much does it cost to register a mortgage in Dubai?
Do I pay VAT on a new apartment in Dubai?
Is agent commission capped in Dubai?
Header photo: Francisco Anzola, CC BY 2.0, via Wikimedia Commons. All credits: image credits.