The compulsory government fees
Two charges apply on every registered transfer, whatever the property and whoever the buyer is.
| Charge | Amount | Paid to |
|---|---|---|
| Transfer fee | 4% of the sale price | Dubai Land Department |
| Admin fee | AED 580 | Dubai Land Department |
| Trustee office fee | AED 2,000 under AED 500k / AED 4,000 above, plus 5% VAT | The DLD-authorised trustee who completes the transfer |
| Title deed | AED 250–580 for the deed itself | Dubai Land Department |
The 4% is the big one and it is not negotiable. Law says it can be split between buyer and seller; the market convention is that the buyer pays all of it. On off-plan deals the developer often absorbs 50% or 100% of it as a launch incentive — always ask, because it is the single largest saving available to you.
Agency commission
On a resale, agency commission is 2% of the price plus 5% VAT — AED 42,000 on a AED 2m apartment. It is negotiable in principle and rarely discounted in a strong market, and it is paid by the buyer to the buyer’s agent and by the seller to the seller’s agent.
On a direct developer purchase there is normally no buyer-side commission at all: the developer pays the broker, not you. If a broker asks you for 2% on top of a developer price, ask what that fee is for.
If you take a mortgage
| Cost | Typical amount |
|---|---|
| Mortgage registration (DLD) | 0.25% of the loan amount + AED 290 |
| Bank arrangement fee | Up to about 1% of the loan; frequently discounted or waived on promotions |
| Property valuation | AED 2,500–3,500, paid to the bank’s valuer |
| Life and property insurance | Varies with age, loan size and cover |
One structural point that changes the arithmetic on new launches: the Central Bank caps off-plan mortgages at 50% loan-to-value, against up to 80% for a completed home for a first-time resident buyer. If your plan is to buy off-plan and finance at handover, plan the 50% yourself.
Two worked examples
Cash purchase at AED 1,500,000. Transfer 4% = AED 60,000. Admin AED 580. Trustee AED 4,000 + VAT = AED 4,200. Deed AED 250–580. If it is a resale, add 2% + VAT = AED 31,500. Total additional cost: about AED 96,000–100,000, or roughly 6.5% of the price.
Mortgaged purchase at AED 2,000,000 with a AED 1,600,000 loan. Transfer AED 80,000. Admin AED 580. Trustee AED 4,200. Mortgage registration 0.25% = AED 4,000 + AED 290. Valuation AED 3,000. Arrangement up to AED 16,000. Total before agency commission: about AED 108,000. With commission (AED 42,000) it lands near AED 150,000 — 7.5% of the price, plus your 20–25% down payment.
The ongoing costs nobody quotes at the viewing
Service charge is the cost that quietly changes an investment return, and it is quoted per square foot per year. It is levied by the owners’ association, not the developer, and it varies enormously between communities — a tower with a long amenity list and a chiller plant runs at a multiple of a low-rise block. Take the service charge per sq ft, multiply by your size, and subtract it from the rent before you believe any yield figure. Our ready listings carry the service charge so that subtraction is possible from the first viewing.
There is no annual property tax in Dubai and no capital gains tax on a residential sale, which is why the transaction costs above are the whole tax picture: paid once, on entry and exit.