What it costs to buy in United Arab Emirates
On United Arab Emirates’s median asking price of €597,600, that is €27k – €51k on top.
Budget 4.5–8.5% on top of the price. The 4% Land Department transfer fee is legally split with the seller but universally paid by the buyer, and there is no annual property tax — though service charges more than fill the gap.
Last checked 11 September 2026 against the sources listed at the foot of this page.
Buying a property in the United Arab Emirates involves several costs beyond the asking price. Knowing these expenses is essential for effective financial planning.
This guide outlines one-off purchase costs, recurring ownership costs, and provides practical examples to help you budget effectively. Please consult a qualified local lawyer or accountant for specific advice.
The lines that dominate the bill
- DLD transfer fee
- 4% of sale value
- Legally 2% buyer plus 2% seller, but by universal Dubai convention the buyer pays all of it.
- Estate agent fee
- 2% + 5% VAT
- The standard RERA-registered brokerage rate on the secondary market. Negotiable.
- Annual service charges
- AED 3–70+ per sq ft
- Set per building under the Mollak system. Roughly AED 10–30 for apartments, AED 60+ in luxury towers.
Every cost, in full
| Cost | Amount | What it is |
|---|---|---|
| DLD transfer fee | 4% of sale value | Legally 2% buyer plus 2% seller, but by universal Dubai convention the buyer pays all of it. |
| Registration trustee office fee | AED 2,100–4,200 incl. VAT | AED 2,000 below AED 500k and AED 4,000 at or above, plus 5% VAT. Paid where the transfer is executed. |
| Title deed issuance | AED 250 (≈AED 580 with add-ons) | Per apartment, villa or plot, plus a map or site-plan fee that usually applies too. |
| Estate agent fee | 2% + 5% VAT | The standard RERA-registered brokerage rate on the secondary market. Negotiable. |
| Developer NOC fee | AED 500–5,000 | A No Objection Certificate confirming service charges are clear. By convention the seller pays. |
| Mortgage registration fee | 0.25% of the loan | Paid to the Land Department, and since 2025 it must be funded in cash rather than added to the loan. |
| Mortgage costs for non-residents | 0.5–1% of loan + AED 2,500–3,500 valuation | Non-residents face higher arrangement fees and deposits of 20–50%. |
| Conveyancing fee | AED 6,000–12,000 | Optional, since the trustee office handles the transfer, but common for off-plan and non-resident purchases. |
| VAT on residential property | 0% | Residential sales are exempt or zero-rated. The 5% VAT applies only to fees such as brokerage. |
| Annual property tax | None | Dubai levies no annual property tax and no capital gains tax on resale for individuals. |
| Annual service charges | AED 3–70+ per sq ft | Set per building under the Mollak system. Roughly AED 10–30 for apartments, AED 60+ in luxury towers. |
| Freehold zones | Restricted | Non-GCC foreigners may buy freehold only in designated areas; elsewhere leasehold or usufruct only. |
Who pays the estate agent
Usually yes. The buyer typically pays their own broker 2% plus 5% VAT, though in slower markets sellers sometimes cover both sides.
The number you need before you can complete
None. No tax number, Emirates ID or residence visa is needed to buy freehold property in Dubai — a valid passport and a registration trustee appointment are enough.
Recently changed, or about to
A 2025 Central Bank directive requires the 0.25% mortgage registration fee to be funded in cash rather than added to the loan.
Sources
Tax authorities, registries and notarial bodies first. Check the figure you care about before you rely on it.
- Dubai Land Department — request to register the initial saleprimaryRegistration fee of 2% seller plus 2% purchaser, and the fixed knowledge and innovation fees.
- Dubai Land Department — sale registration with an initial mortgageprimaryAED 250 title deed fee, AED 250 map fee and the 0.25% mortgage registration fee.
- DLD fees in Dubai: everything you need to knowTrustee office fees including VAT, and that the buyer pays the full 4% by convention.
- Property tax in Dubai: the real fees to budget forNo annual property tax, service charge ranges, NOC paid by the seller.
- Dubai agent commission 2026: who pays and how much2% brokerage plus 5% VAT and who customarily pays it.
This is general information for a non-resident buyer of a residential property, not tax or legal advice. Rates change, reliefs depend on your circumstances, and regional variation is the rule rather than the exception — take local professional advice before you commit to anything.
Cite this page
Habio, “Cost of buying property in United Arab Emirates”. https://habio.ai/guides/cost-of-buying-property-in-united-arab-emirates
https://habio.ai/guides/cost-of-buying-property-in-united-arab-emirates
Free to quote with attribution to Habio. Every figure links to its source.
What you would actually be paying for
See what property in United Arab Emirates is actually asking, by region.
The process in more detail
One-off Purchase Costs
When buying property in the UAE, you should expect to pay several one-off costs, which can amount to a significant percentage of the property's price. Key costs include transfer fees, registration fees, and legal fees.
- Transfer fees typically range from 2% to 4% of the purchase price.
- Registration fees can be around 0.25% of the purchase price.
- Legal and conveyancing fees vary but may approximate 1% of the property price.
Estimated Total Purchase Costs
To effectively budget, homeowners should consider total costs of around 5% to 8% above the asking price. This represents a combination of all one-off fees mentioned above.
Worked Example
Assuming a typical property price of 1,174,999 AED, you could expect to pay between 58,750 AED and 93,999 AED in one-off costs.
For example, using an average of 7%, your total purchase cost would be approximately 1,268,998 AED or more.
Recurring Costs of Ownership
In addition to the initial purchase costs, there are ongoing expenses associated with property ownership. These can vary depending on location and property type.
- Annual property tax is generally low or non-existent for most residential properties.
- Community fees for condominium buildings often range from 20,000 AED to over 50,000 AED annually.
- Utilities (water, electricity, internet) can amount to approximately 500 AED to 1,500 AED monthly.
Mortgage Costs for Non-residents
Purchasers who are non-residents can obtain mortgages in the UAE, but terms may vary significantly based on the lender. Commonly, non-residents can expect a lower Loan-to-Value ratio, usually around 60% to 75%.
Interest rates can fluctuate and are typically higher for non-residents, so it's advisable to shop around and consult financial experts.
Frequently asked questions
What is the approximate range of one-off purchase costs in the UAE?
One-off purchase costs typically range from 5% to 8% of the property price.
Are there ongoing ownership costs I should consider?
Yes, ongoing costs may include community fees, utilities, and insurance, in addition to any applicable property taxes.
Can non-residents obtain mortgages in the UAE?
Yes, non-residents can obtain mortgages, usually with a lower Loan-to-Value ratio and potentially higher interest rates.
What is the typical duration for property registration in the UAE?
Property registration can take anywhere from a few days to a couple of weeks, depending on the complexity of the transaction.
Are there legal requirements I should be aware of when buying property in the UAE?
Yes, it is advisable to work with a local lawyer to ensure compliance with all legal requirements during the buying process.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed August 2026.