What Does Buying a Home in Dubai Cost?
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, once the agency commission and the NOC fee are added, the figure can reach about 6.5%.
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. |
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. There are currently 35 Dubai developments live on the site, each with 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.