Government and registration fees
Charges depend on the transaction and service channel. For a completed property sale, the Dubai Land Department publishes the following. Check the current breakdown before paying.
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| Charge | Published amount | Paid to |
|---|---|---|
| Sale registration | 4% of the sale value in total; the DLD service lists 2% for each party unless agreed otherwise | Dubai Land Department |
| Title deed | AED 250 | Dubai Land Department |
| Map | AED 250 for a villa or apartment; land map fees vary | Dubai Land Department |
| Knowledge and innovation | AED 10 each, where applicable | Dubai Land Department |
| Registration trustee | AED 2,000 plus VAT below AED 500,000; AED 4,000 plus VAT at or above AED 500,000 | DLD service partner |
The 4% registration fee is significant. The DLD lists a 2% share for each party unless they agree otherwise; confirm the allocation in your contract. A developer may offer a fee concession on an off-plan purchase, but get the terms in writing. Fees can also differ by registration channel.
Agency commission
On a resale, a broker may quote 2% of the price plus VAT. At that illustrative rate, the commission on an AED 2 million purchase would be AED 42,000. The rate, services and paying party depend on the written brokerage agreement.
For a direct developer purchase, the developer may pay the broker instead of charging the buyer a separate commission. Ask for all buyer-side fees in writing before committing.
If you take a mortgage
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| Cost | What to check |
|---|---|
| Mortgage registration (DLD) | 0.25% of the loan amount, plus applicable document and service charges |
| Bank arrangement fee | Varies by lender and offer; confirm any VAT |
| Property valuation | Varies by lender and valuer; ask for a written quote |
| Life and property insurance | Varies with cover, loan and borrower circumstances |
The Central Bank of the UAE lists a maximum loan-to-value of 50% for property purchased off-plan. Limits for completed homes depend on borrower and property circumstances; a lender may apply stricter criteria. Ask the lender how it will assess your purchase and any financing at handover.
Two worked examples
Illustrative cash resale at AED 1,500,000. Assume the buyer agrees to pay the full 4% registration fee (AED 60,000), an AED 4,000 trustee fee plus 5% VAT (AED 4,200), AED 250 each for the deed and apartment map, AED 20 in knowledge and innovation fees, and 2% brokerage plus 5% VAT (AED 31,500). The illustrated total is AED 96,220, about 6.4% of the price. This is not a quote and excludes other legal, NOC, utility and transaction costs.
Illustrative mortgaged resale at AED 2,000,000 with an AED 1,600,000 loan, if eligible. Assume AED 80,000 registration, AED 4,200 trustee fees, AED 520 for the deed, apartment map and stated small fees, AED 42,000 brokerage, AED 4,000 mortgage registration, AED 3,000 valuation and an AED 16,000 bank arrangement fee. These assumptions total AED 149,720, about 7.5% of the price, plus the down payment. Applicable VAT on bank fees, additional mortgage documents and other costs are excluded.
The ongoing costs nobody quotes at the viewing
Service charges can materially change an investment return and are often quoted per square foot per year. They vary by community and building. Request the current statement for the specific unit, calculate the annual amount and include it alongside vacancy, management, maintenance and other costs.
Tax depends on your residence and circumstances. For example, UK-resident owners may have UK tax obligations on overseas rental income and gains. Other local charges may apply. Check the current rules and obtain independent tax advice for your circumstances.