Guide · Dubai
Dubai buying costs, without surprises.
The asking price is never the total cost. Here are the fees to plan for, at purchase and every year, so you can work out the real return on your investment.
The main fee: 4% to the Dubai Land Department
Every purchase in Dubai is registered with the Dubai Land Department (DLD), which charges a registration fee of 4% of the price. On an off-plan property, it is paid when the sale is registered in Oqood, as explained in my guide to buying off-plan in Dubai. On a resale, it is paid on the day of transfer.
Fixed administrative fees come on top: issuing the title deed or the Oqood certificate and, on a resale, the fees of the registration office (trustee) where the transfer is signed.
Agency commission
When you buy off-plan, the agency's commission is paid by the developer: you pay the developer's price. On the resale market, the agency commission is usually 2% of the price, paid by the buyer.
If you finance with a mortgage
Registering a mortgage with the DLD carries a fee calculated on the loan amount, plus the bank's arrangement and valuation fees. I set these out for you before any offer.
Annual running costs
Once you own the property, you pay annual service charges, calculated per square foot. The DLD publishes an official index of these charges by project, so you can know them before you buy.
If you rent the property out, also allow for property management, maintenance and, for short-term lets, the costs linked to the permit. The UAE levies no personal income tax on rental income. You will find the rules for landlords in my guide to renting out your Dubai property.
- Service charges
- Property management, if you delegate it
- Maintenance and insurance
- Utilities (water, electricity, cooling) while the property is empty
My advice
Always think in terms of total cost and net return: price, buying costs, annual charges and vacant periods. This is the calculation I present for every property on your shortlist.
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FAQ
Frequently asked questions
Can the DLD fee be negotiated?
No, it is set by the authority. However, some developers cover all or part of it during a launch, and I tell you when that is the case.
Is there an annual property tax in Dubai?
There is no annual property tax comparable to council tax in the UK or municipal property taxes in Canada and many European countries. The main annual cost is the service charge.
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