Dubai's headline advantage is famous: no annual property tax, no income tax on rent, no capital gains tax. But buying still involves one-time fees that first-time buyers routinely underestimate. Here is the complete picture.
Government fees
- DLD transfer fee — 4% of the purchase price, paid to the Dubai Land Department. This is the single largest cost on top of the price.
- Oqood registration (off-plan) — the interim registration of your sales agreement with the DLD.
- Title deed issuance and admin fees — modest fixed amounts at handover or transfer.
Transaction costs
- Agency commission — commonly 2% on secondary-market purchases. On off-plan launches, the developer typically pays the broker, meaning buying through a platform like Propmart adds nothing to your price.
- Mortgage costs (if financing) — bank arrangement fees, valuation fees, and a DLD mortgage registration fee of 0.25% of the loan amount.
Ownership costs
- Service charges — annual fees per square foot that fund building maintenance, security and amenities. They vary meaningfully between buildings and districts; always ask for the current rate before buying.
- Utilities registration — DEWA connection deposits.
Rule of thumb
Budget roughly 6–8% on top of the purchase price for a financed secondary purchase, and less for an off-plan launch where the developer covers commission and fees are staged. And remember the flip side: once you own, Dubai's zero recurring property tax means ongoing costs are limited to service charges — a structural advantage over most global cities.
