What is the total cost of buying property in Dubai beyond the purchase price?

For a secondary-market ready property, budget 6 to 8 percent on top of the purchase price. The main charges are the DLD transfer fee at 4%, agency commission at 2%, trustee fee at AED 5,000 for properties over AED 500,000, and minor DLD admin fees. A AED 1,500,000 property will cost roughly AED 1,595,000 to AED 1,600,000 all-in.

Can foreign nationals legally buy property in Dubai?

Yes. Dubai is a freehold market open to all nationalities. International buyers purchase, register, and hold title in freehold designated areas the same way any other foreign national does. The title deed is issued by the Dubai Land Department in the buyer's name.

How do international buyers transfer money to buy property in Dubai?

Most overseas buyers use their UAE bank account for the transfer, funded by an international wire from their home bank. Larger transactions may require source-of-funds documentation from the receiving bank. Licensed UAE exchange houses are also a common and practical channel, providing a formal receipt trail. Alsama's team can guide you on the most suitable route based on where your capital is held.

What is the DLD fee and who pays it?

The Dubai Land Department transfer fee is 4% of the property's sale price, paid at the time of title transfer. The buyer almost always pays it, though technically it can be split. On a AED 2,000,000 property, the DLD fee is AED 80,000.

Are there ongoing costs after buying Dubai property?

Yes, the main ongoing cost is the annual service charge paid to the building or community, ranging from roughly AED 10 to AED 20 per square foot per year depending on the area and building. A 1,000 sq ft apartment may cost AED 10,000 to AED 20,000 per year in service charges. There is no property tax or capital gains tax in Dubai.

Does buying Dubai property qualify me for UAE residency?

Yes. A property valued at AED 750,000 or more qualifies for a 2-year renewable UAE property visa. A property at AED 2,000,000 or more qualifies for the 10-year UAE Golden Visa, which also covers a spouse, children, and one household employee.

Are off-plan properties cheaper to buy than ready properties?

Off-plan prices are typically lower than equivalent ready properties, and developers sometimes waive the 4% DLD fee or offer other incentives. The trade-off is waiting for handover, often 2 to 4 years, and carrying construction risk. Off-plan payment plans also let you spread payments, which suits buyers moving capital in tranches.

Is there property tax in Dubai?

No. Dubai charges no annual property tax, no capital gains tax on property sales, and no inheritance tax on real estate. The main recurring cost is the building service charge, which is an operational fee rather than a government tax.

How long does the purchase process take from offer to title deed?

For a ready secondary-market property, from signed MOU to title deed transfer is typically 30 to 45 days. The main steps are signing the MOU, paying the deposit, usually 10%, obtaining the mortgage if applicable, getting the NOC from the developer, and attending the DLD trustee office for the final transfer.

Dubai Property Buying Cost: Full Guide 2026

The Dubai Land Department Transfer Fee

The DLD transfer fee is 4% of the agreed purchase price, paid to the Dubai Land Department at the time of transfer. On a AED 1,000,000 property that is AED 40,000. On a AED 2,500,000 property it is AED 100,000. This fee is not negotiable and there is no exemption for foreign buyers.

The fee is split differently depending on what the Sale and Purchase Agreement states, but in practice the buyer almost always pays the full 4%. When you budget, assume the full 4% is yours.

The DLD also charges an admin fee of approximately AED 580 for properties registered through a trustee office, plus a title deed issuance fee of AED 250. Minor amounts, but worth including in your spreadsheet.

Agency Commission

The market standard for real estate agency commission in Dubai is 2% of the purchase price, paid by the buyer. For a AED 1,500,000 apartment that is AED 30,000 to the agent.

In practice, some developers sell directly without buyer-side commission for off-plan purchases, because the developer pays a co-brokerage fee on their side. If you are working with Alsama to find the right project, we clarify before you sign whether a buyer-side commission applies or whether the developer covers it.

Never sign a Form F, the Memorandum of Understanding, without confirming in writing which party bears the commission and at what percentage.

NOC Fee and Trustee Office Fee

If you are buying a secondary-market property in a development managed by a master developer such as Emaar, Nakheel, or DAMAC, the seller must obtain a No Objection Certificate before the title can transfer. The NOC fee is typically paid by the seller and ranges from AED 500 to AED 5,000 depending on the developer. Some developers charge on the higher end and ask both parties to share the cost.

The trustee office fee is paid by the buyer: AED 4,000 for transactions at or below AED 500,000 and AED 5,000 for transactions above that. The trustee office is a RERA-regulated service point that handles the physical transfer of title from seller to buyer in the DLD system. You attend in person or, for international buyers, your power-of-attorney representative attends on your behalf.

Mortgage Registration Fee

If you are financing the purchase through a UAE bank mortgage, the DLD charges a mortgage registration fee of 0.25% of the loan amount plus AED 290 admin. On a loan of AED 1,000,000 that is AED 2,500 plus AED 290, totaling AED 2,790. The bank itself may also charge a processing fee ranging from 0.5% to 1% of the loan, though this varies by lender and is sometimes negotiable.

For overseas buyers: obtaining a UAE bank mortgage as a non-resident is possible at select banks but comes with stricter requirements. Many foreign buyers in Dubai purchase with cash or through developer payment plans rather than conventional mortgages, which also reduces this fee to zero.

Service Charges and Maintenance Fees

Service charges are annual fees paid to the building or community management for shared facilities, security, cleaning, and maintenance. They are quoted per square foot per year and vary by location and building quality.

For Dubai Marina or JBR, expect AED 15 to AED 20 per square foot per year. For Business Bay, roughly AED 12 to AED 18. For Jumeirah Village Circle or Dubai Silicon Oasis, AED 10 to AED 15 is typical. A 1,000 sq ft apartment in Dubai Marina therefore carries approximately AED 15,000 to AED 20,000 per year in service charges. That is a real ongoing cost to factor into your yield calculations.

The DLD publishes an annual Service Charge Index that sets a cap per building. Look this up for any property you are considering.

Worked Total Example: AED 1,500,000 Ready Property

A concrete example for a secondary-market apartment priced at AED 1,500,000, purchased with cash:

Purchase price: AED 1,500,000 DLD transfer fee (4%): AED 60,000 Agency commission (2%): AED 30,000 Trustee office fee: AED 5,000 NOC fee (seller pays in most cases, but assume shared): AED 1,500 Title deed issuance: AED 250 DLD admin fee: AED 580

Total transaction costs: approximately AED 97,330 Total all-in outlay: approximately AED 1,597,330

In USD terms: at AED 3.67 per dollar, AED 1,597,330 is approximately USD 435,000. The AED is pegged to the US dollar at a fixed rate, so the asset's dollar value remains stable regardless of the buyer's home currency.

Off-Plan vs Ready: How Costs Differ

Off-plan properties have a different cost profile from ready secondary-market units.

The DLD transfer fee is still 4%, but some developers offer a DLD fee waiver as a promotion, reducing your transfer cost to zero or a nominal amount. Agency commission often does not apply because the developer pays the broker directly. You also do not pay a trustee fee until the title is issued, which happens after handover.

The main cost difference is timing. Off-plan means paying in installments over the construction period, typically 10% to 20% on booking, then periodic tranches, with 30% to 40% on handover. This lets buyers manage cash flow rather than front-loading the full amount.

For international buyers managing cross-border transfers, off-plan payment plans reduce the size of any single transfer, which can simplify logistics. The trade-off is construction risk and a longer wait before the asset generates rental income.

Ready properties transfer immediately, generate rent from week one, and the full cost picture is clear upfront. Premium ready property in established areas like Downtown Dubai or Palm Jumeirah will always command a premium over comparable off-plan, but the certainty is often worth it.

The International Buyer Angle: Holding a Dollar-Linked Asset

Dubai property is denominated in AED, which is pegged to the US dollar at a fixed rate. For international buyers, this is a core part of the investment case: purchasing AED-denominated real estate means acquiring a hard-currency asset whose dollar value remains stable over time.

Ownership is fully legal and transparent. The title deed is issued by the Dubai Land Department in the buyer's name and can be rented, sold, or inherited with no restriction on foreign nationals. There is no capital gains tax on property sales and no income tax on rental returns, making the net yield calculation straightforward.

Buying property above AED 750,000 qualifies for a 2-year renewable UAE property visa. Buying above AED 2,000,000 qualifies for the 10-year UAE Golden Visa. Neither requires the buyer to live in Dubai full-time, though residency opens UAE banking and facilitates future transactions.

Alsama's experienced team has guided hundreds of overseas clients through this process. We handle everything from property selection and developer negotiations to the DLD transfer and visa application. The total process from first viewing to title deed takes 30 to 45 days for a ready property.

Dubai Property Buying Cost: Every Fee Explained