Fees & Buying Costs

The Dubai Land Department charges a transfer/registration fee of 4% of the property's purchase price, plus small fixed administrative amounts. On off-plan sales it is normally collected at the time of purchase alongside Oqood registration, and in practice the buyer usually pays the full 4% even though the law contemplates it being shared. Some developers run promotions where they absorb part or all of the DLD fee — genuinely valuable, but verify it is written into the SPA rather than just marketing copy.

Oqood is the DLD's interim register for off-plan sales. Because no title deed exists until completion, each off-plan contract is registered in Oqood, creating a documented legal interest for the buyer and preventing the developer from selling the same unit twice. The registration is processed through the developer, and the associated cost is the 4% DLD fee plus a modest fixed admin charge. At handover, the Oqood registration converts into a full title deed in the buyer's name.

Usually not directly. On new off-plan sales, the developer typically pays the broker's commission, so buying through a registered agent generally costs the buyer nothing extra compared with buying from the developer's own sales office. On secondary-market and resale transactions, the buyer conventionally pays commission of around 2% of the price plus VAT. Always confirm in writing who pays what before signing, and only deal with RERA-registered brokers whose registration number you can verify.

Beyond the 4% DLD fee, expect Oqood or title registration admin charges, developer administrative fees, and at handover: utility connection deposits (DEWA in Dubai), possibly district cooling deposits, and the first service charge instalment. If you finance the purchase, add mortgage registration at 0.25% of the loan amount, bank arrangement fees, and valuation costs. As a working rule, budgeting roughly 6-8% of the purchase price for total transaction and move-in costs keeps most buyers out of trouble.

The UAE levies no annual property tax, no capital gains tax on personal property sales, and no tax on rental income for individual owners. The main government charges are transactional — the 4% DLD fee on purchase — plus the housing fee added to utility bills for occupied properties in Dubai, calculated as a percentage of annual rental value. Foreign investors should separately check their home country's tax treatment of overseas property income and gains, which the UAE's regime does not remove.

The typical sequence: booking deposit at reservation; the 4% DLD fee and Oqood admin charge shortly after, when the sale is registered; instalments per the payment plan during construction; then at handover, the final balance, developer handover admin fees, utility and cooling deposits, and the first service charge billing. Mortgage-related fees fall due when the loan is arranged. Ask the developer for a full fee schedule in writing at reservation stage so nothing surfaces as a surprise at handover.