Property purchase costs in Dubai: fee structures and non-resident regulations

Government transfer taxes and registration fees

The primary government levy on property transactions in Dubai is the Dubai Land Department (DLD) transfer fee. In 2026, the DLD transfer fee stands at a flat rate of 4% of the property's declared sale price. Under Law No. 7 of 2006, the fee is formally allocated equally between buyer and seller (2% each). However, commercial contract negotiation in the secondary resale market customarily places the full 4% payment responsibility on the buyer. For off-plan purchases from developers, the equivalent 4% fee registers the initial contract under the DLD interim property register, known as the Oqood system.

In addition to the 4% transfer fee, buyers must pay mandatory DLD administrative fees upon transfer. A title deed issuance fee of AED 250 applies for standard ownership certificates, alongside property map and administrative fees of AED 270 to AED 580 depending on property type. A government Knowledge and Innovation fee of AED 40 to AED 580 is also added to the transaction invoice.

Registration trustee, legal and conveyancing fees

Physical property transfers in Dubai secondary sales are conducted through government-licensed Real Estate Registration Trustee Centres, operating under DLD oversight. The trustee office charges a fixed service fee based on property valuation:

• Properties valued below AED 500,000: AED 2,000 plus 5% Value Added Tax (VAT), totalling AED 2,100.
• Properties valued at AED 500,000 or above: AED 4,000 plus 5% VAT, totalling AED 4,200.

To clear a property for transfer, secondary market sellers must obtain a No Objection Certificate (NOC) from the master developer. The NOC confirms that all community service charges and utility bills are fully paid. Developer NOC fees range from AED 500 to AED 5,000 plus 5% VAT. While law does not dictate who pays the NOC fee, standard contract terms in DLD Form F (the Memorandum of Understanding) typically assign this fee to the seller, though buyers sometimes absorb it by agreement.

Formal legal representation is not legally required for standard residential transfers in Dubai, but buyers frequently retain independent conveyancers or legal consultants. Professional conveyancing fees range between AED 5,000 and AED 15,000 plus 5% VAT for standard individual transactions.

Estate agency commissions

Real estate brokers operating in Dubai must be registered with the Real Estate Regulatory Agency (RERA), the regulatory arm of the DLD. Standard broker commission on secondary market sales is 2% of the agreed purchase price, subject to 5% VAT, creating an effective agency cost of 2.1%.

In secondary market sales, the 2% commission is paid by the buyer. In primary off-plan purchases directly from property developers, agency commissions are paid entirely by the developer, meaning buyers pay 0% agency fees.

Mortgage finance costs

Buyers financing a property through a UAE-regulated bank incur mandatory administrative and registration expenses. Under UAE Central Bank rules, all transaction fees (including DLD transfer fees, trustee fees and agency fees) must be funded from cash equity and cannot be added to the mortgage principal.

Mortgage-related costs payable at closing include:

• DLD Mortgage Registration Fee: 0.25% of the total loan amount plus a flat AED 290 administrative fee.
• Bank Processing/Arrangement Fee: 0.5% to 1% of the loan amount plus 5% VAT.
• Property Valuation Fee: AED 2,500 to AED 3,500 plus 5% VAT, charged by the lending bank to assess collateral value.
• Mortgage Release Fee: If the seller has an existing mortgage, a bank release fee of AED 1,290 to AED 1,560 applies to clear the title encumbrance.

Recurring annual property taxes and community fees

Dubai levies 0% annual recurring property tax, 0% capital gains tax and 0% personal income tax on rental earnings.

However, property owners are subject to annual community service charges to cover maintenance, security, insurance and shared amenities. These charges are regulated by RERA and calculated on a per-square-foot basis via the online Mollak management platform. Rates vary widely depending on location and building density, typically ranging from AED 3 per sq ft in master-planned villa communities to AED 40 or more per sq ft in luxury high-rise towers in Downtown Dubai or Palm Jumeirah.

For occupied residential properties, Dubai Municipality levies a municipal housing fee of 5% of the annual rental value. For rented units, this is paid by the tenant; for owner-occupiers, it is calculated against the estimated rental value and billed in monthly instalments through Dubai Electricity and Water Authority (DEWA) utility invoices.

Non-resident regulations and Visa requirements

Foreign nationals and non-residents are legally permitted to purchase real estate on a freehold basis without restrictions, but only within designated freehold zones as established under Decree No. 3 of 2006. Areas outside designated freehold zones remain restricted to UAE and GCC nationals.

Key non-resident provisions in 2026 include:

• Borrowing limits: Non-resident mortgage buyers face stricter Central Bank loan-to-value (LTV) limits, usually capped at 60% to 75% of property value, compared to 80% for UAE resident expatriates purchasing a first property up to AED 5 million.
• Golden Visa eligibility: Foreign buyers acquiring property with a total purchase value of AED 2,000,000 or higher are eligible to apply for a 10-year renewable UAE Golden Visa residency. The property can be held under a mortgage, provided a minimum equity threshold is met according to Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) guidelines.
• Document verification: Non-residents completing purchases through a Power of Attorney (POA) must have POAs attested by the UAE Ministry of Foreign Affairs (MOFA) and legalised locally.