Stamp Duty & Transfer Fees: Powerful Guide for Dubai & Abu Dhabi Real Estate

In the context of the UAE, “stamp duty” is not a direct tax term used for real estate transactions. Instead, the term refers to the transfer fees and associated costs levied by the respective land departments or municipalities when property ownership changes hands. These fees are a crucial part of the upfront expenses for property buyers in both Dubai and Abu Dhabi.

This updated guide for 2025 outlines the key transfer fees and other charges you need to know when buying or selling real estate in these two major emirates.

Property Transfer Fees: Dubai vs. Abu Dhabi

While both emirates charge transfer fees, the rates and some accompanying costs differ.

Dubai Land Department (DLD) Fees (2025)

The DLD is the official government entity responsible for all real estate registrations, transactions, and regulations in Dubai.

1. DLD Transfer Fee (Registration Fee):
   • Rate: 4% of the property’s sale value. This is the primary and most significant fee.
   • Who Pays: While the law does not explicitly mandate who pays, in practice, the buyer typically bears this cost. However, it is negotiable, and in some market conditions or off-plan deals, the seller or developer might agree to split or even cover this fee as an incentive. This should always be explicitly stated in the Sale and Purchase Agreement (SPA).
   • Payment Method: Usually paid via manager’s cheque at the time of transfer at a DLD-approved trustee office.
2. DLD Registration Fee (Admin Fee):
   • For properties valued below AED 500,000: AED 2,000 + 5% VAT.
   • For properties valued above AED 500,000: AED 4,000 + 5% VAT.
3. DLD Trustee Office Fee:
   • A fixed fee, typically around AED 4,200 + 5% VAT, is paid to the DLD-approved trustee office that facilitates the transfer process.
4. Mortgage Registration Fee (if applicable):
   • Rate: 0.25% of the mortgage loan amount.
   • Additional Fixed Fee: Plus AED 290.
   • New Rule (Effective February 1, 2025): The Central Bank of the UAE has mandated that banks will no longer finance the DLD transfer fee, real estate brokerage commission, DLD trustee fee, mortgage registration fee, and title deed issuance fee. This means buyers must pay these costs upfront and out of pocket, significantly increasing the initial cash requirement for property purchase.
5. No Objection Certificate (NOC) Fee:
   • What it is: A certificate issued by the developer/master developer stating that there are no outstanding service charges or other dues on the property and that they have no objection to the sale.
   • Cost: Varies, typically ranging from AED 500 to AED 5,000, depending on the developer and property type.
   • Who Pays: Typically paid by the seller, but this can be negotiated.
6. Real Estate Agent Commission:
   • Rate: Typically 2% of the property’s sale price.
   • VAT: 5% VAT is applied to the commission amount.
   • Who Pays: Generally paid by the buyer, but again, this is negotiable and should be clear in the SPA.
   • New Rule (Effective February 1, 2025): Like DLD fees, the real estate agent commission can no longer be financed by banks and must be paid upfront by the buyer.
7. Conveyancing/Legal Fees (Optional but Recommended):
   • For legal services to oversee the transfer process, review contracts, and ensure a smooth transaction.
   • Cost: Varies depending on the complexity of the transaction and the law firm, typically ranging from AED 6,000 to AED 10,000 or more.

Abu Dhabi Department of Municipalities and Transport (DMT) Fees (2025)

In Abu Dhabi, property transfers are handled by the Department of Municipalities and Transport (DMT).

1. Property Transfer Fee (Registration Fee):
   • Rate: 2% of the property’s value.
   • Who Pays: This fee is typically paid by the buyer, although negotiations may lead to the seller sharing the cost.
   • Note: For Musataha or Usufruct agreements (long-term leases granting property rights without full ownership), a 4% registration fee applies.
2. Mortgage Registration Fee (if applicable):
   • Rate: 0.1% of the loan amount.
3. Real Estate Agent Commission:
   • Rate: Typically 2% of the property’s value.
   • VAT: 5% VAT is applied to the commission amount.
   • Who Pays: Generally paid by the buyer.
4. No Objection Certificate (NOC) Fee:
   • Similar to Dubai, developers will issue an NOC.
   • Cost: Varies, often ranging from AED 500 to AED 1,500.
   • Who Pays: Typically the seller.
5. Other Fees:
   • Electronic Fee: A fixed electronic fee (e.g., AED 1,000) may apply for digital transactions, particularly in areas like Al Reem Island which transitioned to ADGM jurisdiction in 2025, where sales transfers are fully digital via AccessRP.
   • Valuation Certificate: For sales transfers under ADGM, a valuation certificate fee (e.g., AED 1,092 including VAT) may be required.

Key Considerations for Buyers and Sellers in 2025

• Upfront Costs: The most significant change for 2025, particularly in Dubai, is the requirement for buyers to pay the DLD transfer fee, agent commission, and other related fees upfront rather than incorporating them into a mortgage loan. This necessitates a larger initial cash outlay.
• Negotiation: While traditional practices exist regarding who pays which fees, most fees are ultimately negotiable between the buyer and seller. Always ensure the agreed-upon split is clearly documented in the Sale and Purchase Agreement (SPA).
• Off-Plan Properties: For off-plan properties, the 4% DLD transfer fee in Dubai is typically due at the time the title deed is issued upon project completion, not at the time of booking. Some developers may offer to absorb this fee as an incentive.
• Residential vs. Commercial: While the primary transfer fees are often the same (e.g., 4% in Dubai, 2% in Abu Dhabi), commercial property transactions may involve additional administrative or legal complexities and different VAT implications.
• Market Fluctuations: While the core fee structures generally remain stable, market conditions can influence fee negotiations. Always consult with a reputable real estate agent or legal advisor for the most current information and guidance.
• Digitalization: Both Dubai and Abu Dhabi are increasingly moving towards digital transaction processes. Utilizing online portals and services can streamline the transfer process.

Understanding these transfer fees and associated costs is essential for accurate financial planning and a smooth property transaction experience in Dubai and Abu Dhabi’s dynamic real estate markets in 2025.

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