Dubai Property Fees Every Buyer Must Know Now 2025

REAL ESTATE1 month ago

Dubai is one of the top real estate destinations in the world. With its luxury lifestyle, tax benefits, and world-class infrastructure, people from around the globe invest in Dubai properties every year. However, before buying or selling property in Dubai, it is very important to understand the taxes and fees involved.

In this article, we will break down all the major property taxes, charges, and hidden fees in Dubai real estate. Whether you are a first-time investor, an expat, or a local buyer, this easy-to-follow guide will help you avoid surprises and make smarter decisions.

1. Is There Property Tax in Dubai?

Unlike many countries, Dubai does not charge annual property tax. This is one of the biggest attractions for investors. There is no income tax, no capital gains tax, and no annual property tax on residential properties.

But that doesn’t mean there are no costs at all. There are one-time fees and charges when you buy, sell, or rent a property in Dubai. Let’s go through them in detail.

2. Dubai Land Department (DLD) Fees

When you buy a property in Dubai, the Dubai Land Department (DLD) charges a 4% transfer fee of the property value. This is one of the biggest fees in the process and is usually paid by the buyer.

For example, if the property costs AED 1 million, the DLD fee will be AED 40,000.

Additional DLD Fees Include:

Title Deed Issuance: AED 580
Knowledge Fee: AED 10
Innovation Fee: AED 10
Admin Fees: Varies depending on the transaction

💡 Tip: Make sure to factor in the DLD fee when budgeting for your purchase.

3. Real Estate Agent Commission

If you use a real estate agent, they typically charge 2% of the property value as their commission. This is paid by the buyer in most cases, unless negotiated otherwise.

Example: For a AED 1 million apartment, the agent’s fee will be AED 20,000.

4. NOC (No Objection Certificate) Fee

If the property is in a freehold community, the developer may charge a NOC fee when transferring ownership. This is to ensure the seller has cleared all dues with the developer.

Cost: AED 500 – AED 5,000
Paid by: Usually the seller, but sometimes shared or paid by the buyer depending on agreement.

5. Mortgage Registration Fees (If You Take a Home Loan)

If you’re buying the property with a mortgage, you need to register it with the DLD. The fee is:

0.25% of the loan amount
Plus AED 290 admin fee

Example: For a AED 800,000 loan, the mortgage fee will be AED 2,000 + AED 290 = AED 2,290.

6. Valuation Fee (For Mortgages)

Banks usually do a property valuation before approving a mortgage. The valuation is paid by the buyer.

Cost: AED 2,500 to AED 3,500
Non-refundable, even if you don’t take the loan

7. Service Charges / Maintenance Fees

Every property in Dubai comes with service charges which are paid annually by the owner. This covers building maintenance, security, cleaning, amenities, and landscaping.

Range: AED 10 to AED 30 per sq. ft. annually
Example: A 1,000 sq. ft. apartment may cost AED 10,000 to AED 30,000 per year

These charges vary by community and the quality of services offered. Always ask for the latest service charge estimate before buying.

8. Rental Property Fees (For Landlords and Tenants)

If you are planning to rent out your property:

Rental income is not taxed
Ejari registration fee: AED 220 (paid by tenant usually)
Housing Fee: Tenants pay 5% of annual rent as part of DEWA bill

As a landlord, you may also need to pay:

Property management fees (if you hire an agency): 5% – 10% of annual rent
Maintenance and repair costs

9. Capital Gains Tax – Is It Applicable?

No. Dubai does not charge capital gains tax. If you sell your property at a profit, you get to keep the full amount.

However, if you sell within 1–2 years, you may pay:

Early settlement fees (if mortgaged)
Agency fees (if selling through an agent)
NOC fees

So, while there’s no tax, there are still costs to plan for.

10. Hidden Fees to Watch Out For

There are a few small fees that can catch you off guard:

Trustee Office Fee: AED 4,000 (AED 5,000 for properties over AED 500,000)
Admin/Processing Charges: Depends on developer or agent
Bank Fees: For mortgage processing (up to 1% of loan amount)

Always ask for a detailed cost sheet from your agent or broker to avoid surprises.

Final Thoughts: Plan Smart, Save More

Buying property in Dubai can be an exciting and profitable investment. But even without income or property tax, the fees can quickly add up. Understanding all the costs upfront helps you plan better and avoid last-minute shocks.

Key Takeaways: