Taxes and costs of buying property in Dubai

On top of the property price, budget roughly 7-10%. The exact amount depends on whether it is off-plan or resale, whether you take a mortgage, and on the agent commission and developer terms.

Costs fall into two groups: one-off at purchase and recurring afterwards. One-off costs are the government Dubai Land Department (DLD) fee, registration and administrative fees, the agent commission and, with a mortgage, bank charges. Recurring costs are the service charge for the building, utility bills and the municipal housing fee.

• DLD fee: 4% of the property price (the main payment).
• Registration fee: 2,000 or 4,000 AED plus VAT.
• Agent commission: usually 2% plus VAT on resale, often 0 for the buyer on off-plan.
• Mortgage: mortgage registration 0.25% of the loan amount plus bank charges.
• After purchase: service charge, utility bills and the housing fee.

There is no classic annual tax on property ownership in Dubai. But at purchase you pay the government DLD fee, and after purchase there are recurring maintenance costs and a municipal fee.

The 4% DLD fee is often called a "property tax", but legally it is a registration fee on the transfer of ownership, not an annual ownership tax. These are different things: the fee is paid once at the transaction, not every year.

The DLD fee for registering a sale is 4% of the price: by the rules it is 2% from the seller and 2% from the buyer. In practice, in most transactions the buyer pays the full 4% if it is agreed in the sale contract.

DLD is the Dubai land authority that registers ownership. The 4% fee is the largest payment in the deal. On top of it there are fixed fees: 250 AED for the title deed, 250 AED for the property map (for an apartment), 10 AED knowledge fee and 10 AED innovation fee. For an apartment this is about 520 AED; the exact set depends on the property type and the registration.

The trustee (service partner) registration fee is 2,000 AED plus VAT for properties below 500,000 AED and 4,000 AED plus VAT for properties from 500,000 AED.

When buying off-plan, the buyer usually sees the same 4% DLD fee. Oqood is the system for pre-registering an off-plan deal in the DLD, and by itself it usually does not mean a separate "second 4% tax" on top of the DLD fee. But administrative fees and the payment order can differ by project, so the terms should be checked with the developer before booking.

On the resale market there is a developer NOC fee (no-objection certificate for the sale) - often in the range of 500-5,000 AED plus VAT. The seller requests it as the current owner, and who pays depends on what the parties agree; in practice this cost is often shifted to the buyer.

On the resale market the standard agent commission is usually 2% of the price plus 5% VAT on the commission itself. On the primary market the buyer commission is often paid by the developer, so for the buyer it can be zero.

The agent commission is market practice, not a government fee, so there is no single rate, but 2% plus VAT is a common benchmark for resale. On off-plan the developer often covers the buyer commission, so for the buyer it can be zero, but this is not a universal rule: commission terms should be confirmed before booking and put in writing.

With a mortgage, DLD charges a mortgage registration fee - 0.25% of the loan amount. The bank separately may charge an arrangement fee, property valuation and insurance; their size depends on the bank.

Mortgages in the UAE are arranged through accredited local banks, so the buyer usually needs a UAE bank account. On top of the 0.25% mortgage registration, a fixed trustee (service partner) fee applies at registration (of the order of a few thousand AED plus VAT), and the bank separately charges for arrangement, valuation and insurance. Exact amounts and terms differ between banks.

After purchase the owner pays the service charge for the building, utility bills (DEWA) and the municipal housing fee. These are not a tax, but they should be budgeted for annually.

Service charge

The service charge is the fee for maintaining common areas. It depends heavily on the building, district, area and amenities. For a preliminary budget you can use a market benchmark of 3-30+ AED per square foot per year, but this is not an official rate: the exact amount is checked per property through the DLD/RERA service charge index (the official verification tool) or with the management company.

Utility bills (DEWA)

DEWA is water and electricity by meter plus a refundable deposit on connection. The amount depends on the area and consumption. The housing fee is billed through the same DEWA account.

Housing fee

There is no classic annual tax on property ownership, as in the US or Europe, in Dubai. But there is a municipal housing fee - usually 5% of the property estimated annual rent. It is billed through the DEWA account: when the property is rented out it is usually paid by the tenant, and when owner-occupied, by the owner.

For a private individual in the UAE there is usually no income tax and no capital gains tax, including on the sale of personal property. VAT on residential resale usually does not arise.

VAT

The first supply of new residential property within 3 years of completion is zero-rated for VAT - that is, the buyer effectively pays no VAT. Subsequent residential transactions are usually VAT-exempt. This rule applies to residential property; commercial property, offices and retail are a separate category and are subject to 5% VAT.

Income tax and capital gains tax

There is no federal personal income tax in the UAE, and for UAE tax residents there is usually no capital gains tax either, including on the sale of personal property. But if the buyer remains a tax resident of another country, tax obligations may arise there - this is checked separately.

Corporate tax 9%

Ordinary ownership of a home by a private individual does not by itself fall under corporate tax. It may arise if a person runs a business in the UAE and passes the threshold and conditions of the tax authority (FTA). If the property is used in a business structure or held by a company, the tax picture changes - such cases are best discussed with a tax adviser separately.

On the resale market without a mortgage, costs on top of the price add up to roughly 6-7% for a property at 2,000,000 AED. With a mortgage and extra services the total is usually closer to 7-10%.

For a real-estate Golden Visa you need to own one or more properties worth at least 2,000,000 AED (about $545,000). Since February 2026 mortgaged properties and off-plan units also qualify: the value is confirmed by the DLD valuation, and for a mortgaged property the bank consent (NOC) is required.

Many buyers aim precisely at the 2,000,000 AED threshold to get a long-term residence visa together with the property. The former 50% down-payment requirement for off-plan was removed in February 2026 - now the full contract value (Oqood) in the DLD counts. Exact requirements for documents and value confirmation depend on the property type and emirate, so they are checked before applying through ICP/GDRFA and DLD. We cover the conditions in detail on the UAE Golden Visa page.

A separate question is the buyer tax residency. If a person remains a tax resident of another country, including Russia, income from renting or selling foreign property may create reporting obligations in the country of residence. The UAE zero taxes do not by themselves cancel that obligation. This should be checked separately with a tax adviser.