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Summary of fees for a ready-property purchase
| Fee | Amount | Paid to | Usually paid by |
|---|---|---|---|
| DLD transfer fee | 4% of the purchase price + AED 580 admin fee (apartments and villas) | Dubai Land Department | Buyer (by custom; legally shared) |
| Registration trustee fee | AED 4,000 + 5% VAT for prices of AED 500,000 and above; AED 2,000 + VAT below | Registration trustee office | Buyer |
| Agency commission | 2% of the price + 5% VAT | Broker | Buyer (seller pays its own broker separately) |
| Developer NOC fee | Varies by developer | Master or building developer | Seller (by custom) |
| Mortgage registration | 0.25% of the loan amount + AED 290 | Dubai Land Department | Buyer, if financing |
| Valuation fee | Set by the bank or valuer | Bank / RERA-registered valuer | Buyer, if financing |
The DLD transfer fee for land plots uses a different admin fee (AED 430). The figures above are the well-established published amounts; fee schedules can change, so confirm with the DLD or the trustee office before transfer.
Government fees: DLD transfer fee and trustee fee
The DLD transfer fee is 4% of the price stated in the sale contract, plus an administrative fee of AED 580 for an apartment or villa. It is collected at the registration trustee office at the moment of transfer. Law No. 7 of 2006 contemplates the fee being split equally between seller and buyer, but market practice in Dubai is that the buyer pays the whole 4% unless the parties agree otherwise in Form F. A seller may occasionally offer to absorb part of it as a negotiating concession.
The registration trustee fee is charged by the private trustee offices licensed by the DLD to process transfers. It is AED 4,000 plus 5% VAT where the price is AED 500,000 or more, and AED 2,000 plus VAT below that. Practically every purchase in the communities Bonum works in falls into the higher band.
Where the buyer registers a mortgage at the same time, the DLD charges a mortgage registration fee of 0.25% of the loan amount plus AED 290. A separate trustee fee usually applies to the mortgage registration as well.
Agency commission
The standard brokerage fee for a ready-property sale in Dubai is 2% of the purchase price, plus 5% VAT, paid by the buyer to the buyer's broker at transfer. The seller normally pays its own listing broker a similar fee under a separate agreement (Form A). Where one broker represents both sides, the buyer's 2% is still the norm and the arrangement must be disclosed.
Commission on an off-plan purchase is different: the developer pays the broker, and the buyer pays no commission. That is why no agency fee appears on a developer's payment plan.
Commission is payable on completion of the transfer, not before. A broker that asks for commission in advance, or for a payment to a personal account, is not following RERA practice.
Developer NOC and other transaction charges
Before a ready property can be transferred, the developer of the community or building must issue a No Objection Certificate confirming that service charges are paid and that there are no outstanding matters. Developers charge a fee for this, which varies by developer, and by custom the seller pays it, though some developers require the buyer to attend and pay. The NOC typically has a limited validity period, so it is applied for once the transfer date is fixed.
Other charges that can arise:
- Power of attorney: notary fees in the UAE, or notarisation and attestation abroad if you are not attending in person.
- Manager's cheque fees charged by your bank.
- Utilities: a deposit and connection fee with DEWA (Dubai Electricity and Water Authority), and district cooling registration where the building uses it.
- Legal fees if you instruct a lawyer to review the contract; optional, but common for high-value purchases and for company buyers.
Worked example: AED 15,000,000 villa, cash purchase
A buyer purchasing a ready villa on Palm Jumeirah or Jumeirah Bay Island for AED 15,000,000 without a mortgage would pay the following at the trustee office:
| Item | Calculation | AED |
|---|---|---|
| DLD transfer fee | 4% x 15,000,000 + 580 | 600,580 |
| Registration trustee fee | 4,000 + 5% VAT | 4,200 |
| Agency commission | 2% x 15,000,000 + 5% VAT | 315,000 |
| Total buyer costs | 919,780 |
That is approximately 6.13% of the purchase price. The developer's NOC fee, utility deposits and any legal fees are additional and are not included because they vary. If the same buyer financed part of the purchase, mortgage registration at 0.25% of the loan plus AED 290, a valuation fee and the bank's arrangement fee would be added.
You can run your own figures for any price on the calculator on our home page.
Costs after purchase: service charges
Once you own the property, the main recurring cost is the annual service charge, which covers maintenance of common areas, security, landscaping, the community's facilities and, in apartment buildings, the building's systems and insurance. It is set per square foot of the unit's area, approved annually by RERA for each community or building, and billed by the owners' association management company. Rates differ widely between a villa community and a branded residence with resort services.
Before committing, ask for the current approved service charge for the specific property, the last two years' statements and confirmation that there are no arrears; arrears attach to the property and will block the NOC. For villas with private pools, beach frontage or extensive landscaping, budget separately for your own maintenance contracts.
There is no annual property tax, no municipal rate on owner-occupied property and no capital gains tax on a later sale.
Who pays what: a practical allocation
Dubai practice, absent a different agreement in Form F, is as follows:
- Buyer: 4% DLD transfer fee and AED 580 admin fee, trustee fee, buyer's agency commission, mortgage-related fees, utility deposits.
- Seller: developer NOC fee, settlement of any service-charge arrears and mortgage release costs, seller's own listing commission.
Everything is negotiable in principle, and in a slow market it is not unusual for a seller to contribute to the transfer fee. Whatever is agreed should be written into Form F so that the trustee office can apply it on the day. For the full sequence of the transaction, see How to buy property in Dubai as a foreigner. If the purchase is intended to support a residence application, see UAE Golden Visa through property; visa fees are separate from the transfer costs above.