The main cost is the DLD fee: 4% of the price. The rules split it equally between buyer and seller unless agreed otherwise, but your contract is what counts, so it is prudent to budget for all of it. An off-plan purchase adds AED 20 when the sale is registered and AED 520 at handover. For a home of AED 1,000,000, official costs come to about AED 40,540, about €9,800 or $11,000.
In this guide9 sections
- Who pays the 4% DLD fee?
- What official fees apply to an off-plan purchase?
- What if you buy a ready home?
- How much is it on an AED 1,000,000 purchase?
- What other costs come later?
- Are there taxes on owning the property in Dubai?
- Buying costs from the UK or the US
- Things to keep in mind
- Frequently asked questions
| Item | Amount | When |
|---|---|---|
| DLD registration fee | 4% of the price: 2% buyer and 2% seller unless agreed otherwise | When the sale is registered in Oqood |
| Knowledge and innovation fees | AED 10 + 10 | When the sale is registered |
| Title deed, map and fees | AED 250 + 250 + 20 | At handover |
| Agency commission | Agreed case by case | On purchase |
| Developer’s Oqood registration | AED 1,000, if passed on | When the sale is registered |
| Developer’s own fees | As per contract | On purchase |
Who pays the 4% DLD fee?
Executive Council Resolution 30 of 2013 sets the fee at 4% of the contract value and says that, unless agreed otherwise, it is shared equally by seller and buyer: 2% each. Your contract is what counts, so check it before signing.
Off-plan, some developers pay part or all of the fee as a launch incentive. If so, it must be written into the contract.
What official fees apply to an off-plan purchase?
When the initial sale is registered with the DLD, the registration known as Oqood, you pay the 4% and AED 20 in fees. When the purchase is completed at handover, the DLD charges AED 250 for the title deed, AED 250 for the map and AED 20 in fees. The registration is explained step by step in the Oqood registration guide.
What if you buy a ready home?
On a resale, the 4% DLD fee is split equally between buyer and seller unless agreed otherwise, plus AED 250 for the title deed, AED 250 for the map and AED 20 in fees. The trustee office charges AED 4,000 plus VAT, about €970 or $1,090, if the price is AED 500,000 or more, and AED 2,000 plus VAT below that. The seller must provide the developer’s NOC. If you buy with a mortgage, registering it costs 0.25% of the loan plus AED 270, and another AED 4,000 plus VAT at the trustee office.
How much is it on an AED 1,000,000 purchase?
If you pay the full 4%, it adds up like this:
| Item | AED | € | $ |
|---|---|---|---|
| DLD fee, 4% | AED 40,000 | €9,695 | $10,892 |
| Fees when the sale is registered | AED 20 | €5 | $5 |
| Title deed, map and fees at handover | AED 520 | €126 | $142 |
| Total official costs | AED 40,540 | €9,826 | $11,039 |
Approximate figures, for illustration only.
Try other prices, including the case where the developer pays the DLD fee, in the off-plan calculator. What you pay at booking, during construction and at handover is in the guide to how much money you need to invest in Dubai.
What other costs come later?
After handover you pay the annual service charge, which you can check and pay in the Dubai REST app. What it costs in each area is in the service charges guide. Add utilities and, if you let the home, management. Ask for the service charge figure before buying.
Are there taxes on owning the property in Dubai?
The UAE does not levy income tax on individuals, so rent from a home in your own name is not taxed in Dubai. If you buy through a company or run a holiday let under a licence in your name, Corporate Tax may apply, so check with an adviser. What matters is your country of tax residence. The guide to Dubai property tax for UK and US residents covers it.
Buying costs from the UK or the US
DLD fees are the same wherever you live. What changes is the currency you pay in and what you declare at home. Keep the receipts for every payment, as the price and fees usually count towards the gain when you sell.
Dubai buying costs from the UK
At October 2026 rates, the AED 40,540 in the example is about $11,000. Paying from pounds, the amount moves with the pound-dollar rate, because the dirham is pegged to the dollar. UK residents normally pay tax on foreign rental income and report it through Self Assessment.
Dubai buying costs from the US
Paying in dollars carries no currency risk: AED 40,540 is about $11,000. The IRS taxes US citizens and residents on worldwide income, so the rent goes on your federal return, and if you open a UAE account and your foreign accounts add up to more than $10,000, you also file an FBAR.
From anywhere else
The fees are the same. Allow for your currency against the dollar and check with a tax adviser how your country treats a property abroad.
Things to keep in mind
- Budget for the full 4% DLD fee unless the contract says otherwise.
- Have the 4% ready for the Oqood registration, on top of the down payment.
- Set aside AED 520 for the title deed at handover.
- Get the agency commission and developer fees in writing.
- Ask for the estimated service charge before buying.
- Keep the receipts for every payment for your tax return.
We help you review all the numbers of each project before you book, with what the developer pays and what you pay.
Frequently asked questions
What are the property buying costs in Dubai?
Mainly the 4% DLD fee. An off-plan purchase adds AED 20 when the sale is registered and AED 520 at handover, so on an AED 1,000,000 home official costs come to about AED 40,540.
Is the 4% charged on the contract price?
Yes, the fee is 4% of the sale contract value.
Can the developer pay the 4% for me?
It can be agreed, as the rules split the fee equally unless agreed otherwise. Some launches offer it as an incentive. Get it in writing in the contract.
Is an agency commission mandatory?
It depends on the deal. Always ask first and get it in writing.
How much does it cost to buy an AED 1,000,000 home in Dubai?
Official costs come to about AED 40,540, about €9,800 or $11,000, if you pay the full 4% DLD fee.
What do I declare in the UK if I own a home in Dubai?
UK residents normally pay tax on foreign rental income and report it through Self Assessment.
What do I declare in the US if I own a home in Dubai?
The rent on your federal return to the IRS, and an FBAR if your foreign accounts exceed $10,000.
