Dubai Property Purchase Costs 2026: 4% DLD Fee and Other Charges
Written by: Marcus M. Araz, MBA, PhD · Updated:
Set against the price of a Dubai home, the cost is roughly 4.3% when you buy off plan directly from the developer. Most of that is the one-off 4% DLD transfer fee. On a resale purchase, once the agency commission and the NOC fee are added, the figure can reach about 6.5%. The calculation is the capital.works® Dubai purchase cost calculation; the fees come from the Dubai Land Department scale.
The costs item by item
| Item | Amount | When it is paid |
|---|---|---|
| DLD transfer fee | 4% of the price | At Oqood registration for off-plan, at transfer for a ready property |
| Oqood registration fee (off-plan) | AED 3,000 to 5,000 | At contract registration |
| Registration trustee fee (ready property) | AED 2,000 below AED 500,000, AED 4,000 above | On the day of transfer |
| Title deed issuance | AED 580 | On the day of transfer |
| Agency commission | 2% | Usually does not arise when buying directly from the developer |
| NOC fee (resale) | AED 500 to AED 5,000 | Before transfer |
| Mortgage registration fee | 0.25% of the loan + AED 290 | At transfer |
| Bank valuation | AED 2,500 to AED 3,500 | At mortgage approval |
A 5% VAT is added to the registration fees and the agency commission.
For your own figure, the Dubai Purchase Cost Calculator page.
What Dubai does not have
What sets Dubai apart from our other two markets is not what you pay but what you do not. Beyond the one off fee there is no annual tax burden.
| Costs that do not exist in Dubai | Description |
|---|---|
| Annual property tax | None. The 4% DLD fee is a one off. |
| VAT on residential sales | None. The 5% VAT applies only to services such as commission and registration. |
| stamp duty | None. |
| Capital gains tax | None. |
| rental income tax | None for an individual buyer. |
Total cost example
The same price, two different routes. Buying off plan directly from the developer creates no commission and no NOC fee; on a resale both are added and 5% VAT applies on top.
| Scenario | Price | Total costs | As a share of the price |
|---|---|---|---|
| Off plan, from the developer | AED 550,000 | AED 25,580 | 4.7% |
| Off plan, from the developer | AED 1,000,000 | AED 43,580 | 4.4% |
| Resale, with commission | AED 1,000,000 | AED 67,780 | 6.8% |
The lowest entry in our portfolio is AED 550,000 and the median is AED 1,000,000. If you use a mortgage, the registration fee and the valuation are added on top.
Costs that continue after completion
| Item | How it is calculated | Who pays |
|---|---|---|
| Service charge | An annual charge per square metre, by area and development | The owner |
| Cooling (chiller) | Included in the service charge in some developments, separately metered in others | Whoever uses it |
| Municipality housing fee | 5% of the annual rent, charged through the electricity bill | The tenant |
| The management fee | Different for short lets and long lets | The owner |
| Annual property tax | None | |
| rental income tax | None for an individual buyer |
The whole tax picture is on our Is there property tax in Dubai page.
Sources
The fees are based on the schedule published by the Dubai Land Department (dubailand.gov.ae); off plan sales and the escrow regime rest on Dubai Law No. 8 of 2007 and Law No. 13 of 2008. Agency commission and the NOC fee vary by seller and management company. Amounts are as at 20 September 2026; exceptions such as a developer absorbing the transfer fee in a campaign should be confirmed in writing.
Frequently asked questions
Can I take full ownership in Dubai as a foreigner? Yes, in the designated freehold areas. Title is registered in the foreign buyer’s name and has no time limit.
Who pays the DLD fee? The buyer, as a rule. Some developers absorb it during a campaign; that has to be confirmed in writing.
Is my money safe when I buy off plan? Payments go into an escrow account held for the scheme, not to the developer, and are released against construction progress.
How much is the service charge? It is an annual charge per square metre and varies by area. It is not a tax; it is the running cost of the common areas.
Do I have to declare the rental income in Türkiye? If you are fully liable to tax in Türkiye you declare your worldwide income. On the Dubai side no rental income tax arises.
How we help you with this
As capital.works®, the Overseas Property Centre, we represent selected developments in Dubai. Every development live on the site has its price list, floor plans and completion schedule on its own page. We are an FCA authorised credit broker (FRN 1049015) and a member of the NACFB; the purchase, the finance, residency and post completion management are all run by one team.
The next step
To see the figure for your own scenario, use the calculator. For the freehold areas, escrow and the process, see our Dubai Property Guide page.
We have covered the annual tax and cost side in Dubai in detail on our Is there property tax in Dubai page.
If you want to compare the purchase costs of the three countries in a single table, see our what costs are added when buying abroad page.