The True Cost of Buying Property in Dubai: 4% DLD Fee, Trustee Costs & Service Charges per m²
Updated 2026-10-22 · Indicative figures, not legal or tax advice
The listing price is not what you pay. Budget around 6–8% on top for a ready purchase, then subtract annual service charges from your rent to get the real net yield.
The 4% DLD transfer fee
The Dubai Land Department charges 4% of the purchase price, normally paid by the buyer. Some developers cover part or all of it during launch campaigns.
Trustee, registration and agency costs
Registration trustee fees are a few thousand dirhams. On secondary purchases, agency commission is usually 2% plus VAT. Mortgage buyers also pay a registration fee of 0.25% of the loan.
Annual service charges per m²
Service charges are set per sq.ft each year and range from roughly AED 12 to AED 30 per sq.ft depending on the building. On a high-fee tower they can take 2–3 percentage points off your yield.
| Cost item | Typical rate | Approx. AED |
|---|---|---|
| DLD transfer fee | 4% | 60,000 |
| Trustee & title deed | Fixed | ~4,500 |
| Agency fee (secondary) | 2% + VAT | 31,500 |
| Mortgage registration | 0.25% of loan | ~2,800 |
| Annual service charge (900 sq.ft) | AED 18/sq.ft | 16,200 / year |
Frequently asked questions
- Who pays the 4% DLD fee in Dubai?
- The buyer normally pays it, unless a developer waives it as part of a launch offer.
- Are there property taxes in Dubai?
- There is no annual property tax or tax on rental income for individuals. Your home country may still tax the income.
- How much are service charges in Dubai?
- Roughly AED 12–30 per sq.ft per year, depending on the building and its amenities.