Are transfer fees paid by the buyer or the seller?

The buyer generally pays the DLD transfer fee, but the sale contract may allocate the fee differently, with some contracts splitting the cost between buyer and seller.

Is the DLD fee refundable?

No, the DLD transfer fee is non-refundable once the transfer is completed. However, the Dubai Land Department does offer a "fee refund request" service in cases of unavoidable cancellations or if the property transfer fails to complete.

Do you pay stamp duty on property in Dubai?

No, Dubai does not have a stamp duty on property purchases. Instead, property buyers pay a DLD registration/transfer fee of 4% of the sale price, plus any additional administrative fees.

Should I still tip if there is a service charge?

If a bill includes a service charge, tipping extra is optional in Dubai. Many people round up or leave a small additional amount for good service, but it is not required.

The 4% DLD fee is the Dubai Land Department’s property transfer fee, which is calculated as 4% of the property’s sale price. This fee is the primary cost for property buyers when transferring ownership.

How much does it cost for a transfer of ownership?

A transfer includes the 4% DLD fee, plus trustee/service partner fees (AED 2,000 or AED 4,000 + VAT), and DLD add-ons such as title deed, map, knowledge, and innovation fees, where agent commission and developer NOC fees may also apply.

What is the 6-month rule in Dubai?

For most UAE residence visas, staying outside the UAE for more than 180 consecutive days generally renders the visa invalid. Golden Residence Permit holders are exempt from the 180-day rule.

Can you own 100% property in Dubai?

Yes, foreigners and expatriate residents can own 100% of a property in Dubai when it is in an area designated for freehold ownership.

What are the disadvantages of freehold property?

Disadvantages of freehold property in Dubai include high service charges, market fluctuations affecting property value, strict owners' association rules, and potential rental vacancies reducing income.

What happens to a leasehold property when the lease runs out?

When a leasehold term ends, rights to the property typically revert to the freehold owner unless the lease is renewed or extended under a new agreement.

Hidden Costs When Buying Property in Dubai (2026 Fee Checklist)

Hidden charges are the part that most buyers do not see during the first viewing. The price looks final, the property feels right, and the next step seems simple, but the hidden costs when buying property in Dubai often start appearing only after you move forward. A few fees apply at transfer, some occur during approvals, and others apply when a mortgage or developer clearance is involved. These are common Dubai property buyer fees, and they can change the real budget if they are not planned early. This blog explains it in simple steps, so you can see the full cost early and commit with confidence.

A Quick Summary

Buying property in Dubai involves more than the listed price. Along with the purchase amount, buyers should plan for Dubai Land Department fees, agent commission, mortgage charges, developer approvals, and utility setup. Understanding these costs early avoids surprises and makes the total cost of buying property in Dubai clear and manageable.

Price versus Total Cost

The purchase price is the amount agreed upon with the seller or developer. The total cost of buying property in Dubai is the purchase price plus every extra payment needed to finish the deal and move in. Some expenses are paid on the transfer day. Other costs come at handover. Some keep coming every year.

A simple rule applies, as the listing price is not the full spend, and buyers need to plan for extra costs beyond the property price:

The government charges for registering the sale.
Agent commission and trustee centre charges to complete the transfer.
Bank charges if a mortgage is used.
Developer and building charges outside DLD.
Utility setup and move-in costs.

What Costs Sit on Top of the Dubai Property Price?

Hidden costs when buying property in Dubai are the extra payments that come on top of the agreed price. Two purchase types matter, ready properties that are already built and off-plan properties that are still under construction. Costs vary from case to case, since the process and paperwork differ.

Ready Properties

Ready property deals move fast, since transfer can happen as soon as documents and payments are lined up. Next come the costs a buyer should expect in a ready property purchase, presented in simple terms with clear AED ranges.

Dubai Property Buyer Fees

Dubai Land Department fees include a transfer fee of 4% of the sale price, and DLD shows it split as 2% paid by the buyer and 2% paid by the seller. Many resale deals still charge the full 4% to the buyer when the contract states otherwise, and the paperwork should match the agreement.

Property Registration Fees Dubai

Transfer is processed at a Real Estate Registration Trustee centre:

DLD service partner fee is AED 4,000 plus VAT when the sale price is AED 500,000 or more
DLD service partner fee is AED 2,000 plus VAT when the sale price is below AED 500,000

DLD Admin Add-ons on Transfer:

Title Deed Certificate issuance fee: AED 250
Map fee: AED 225 (Dubai Municipality) or AED 100 (land outside Dubai Municipality) or AED 250 (unit/villa, depending on case)
Knowledge fee: AED 10
Innovation fee: AED 10

Agent’s Commission for Dubai Property

Agent commission is paid to the brokerage and often appears in resale deals as part of Dubai property buyer fees. Many secondary-market contracts use 2% of the purchase price, plus 5% VAT on the commission amount, unless a different rate is specified in the agreement. Form F should show the commission rate, who pays it, and when it is due.

A mortgage spreads payments over years. Upfront costs still show up before keys.

Mortgage registration with DLD

DLD mortgage registration applies when a mortgage is used for the purchase. DLD lists the main charge as 0.25% of the mortgage value, then a few fixed lines that appear on the same payment receipt.

AED 4,000 service partner's fee plus VAT
AED 5,000 service partner's fee plus VAT for Provisional Oqood transactions

Bank valuation fee

Banks usually require an independent valuation before final loan approval. Dubai mortgage cost guides commonly place the valuation fee at AED 2,500 to AED 3,500, and some add 5% VAT depending on the bank and process.

Off-plan Properties

Off-plan purchases follow a different path, since the unit is still under construction and ownership starts with provisional registration. Money usually moves in stages, and the title deed is issued at completion.

Oqood and Provisional registration

Oqood is the Dubai Land Department’s system for registering the initial sale of an off-plan unit before completion. This is a provisional record where the final title deed is issued after completion and handover.

Initial Oqood Registration (at First Sale)

Dubai Land Department lists the initial off-plan sale registration fees as:

Seller fee: 2% of the sale value
Purchaser fee: 2% of the sale value
Knowledge fee: AED 10
Innovation fee: AED 10
Developer self-registration fee (Oqood portal): AED 1,000

Completion of Provisional Procedures (Fixed DLD Admin Lines)

After the initial registration fee is collected, DLD applies fixed admin charges to complete provisional procedures:

Title deed certificate issuance fee: AED 250
Map fee:
- AED 250 for an apartment/villa/real estate unit
- AED 225 unified map under the Dubai Municipality
- AED 100 map for land outside the Dubai Municipality
Knowledge fee: AED 10
Innovation fee: AED 10

Developer Admin and Handover Charges

DLD does not fix developer charges. Amounts must be shown in the SPA or the developer fee schedule. A clear example from Dubai Properties notes that the NOC fee can be up to around AED 5,000, with the exact amount set per case.

Costs to expect under this bucket

Developer NOC or eNOC fee, amount set by the developer
Handover admin charges listed by the developer

Other Costs

Utility setup is part of the additional costs buying property in Dubai, and these payments usually come right before moving in, not on transfer day.

DEWA deposit and activation

DEWA lists a refundable security deposit, plus activation charges for electricity and water.

DEWA charges

AED 2,000 refundable security deposit for an apartment
AED 4,000 refundable security deposit for a villa
AED 130 activation charges for a small meter, made up of AED 100 connection charges
AED 300 connection charge for a large meter, plus AED 10 registration fee

Chiller fees (District Cooling)

If the building uses district cooling, cooling is billed separately from DEWA and usually comes with setup charges and a deposit.

Emicool: one-time AED 200 activation fee, and a refundable security deposit equal to 8 months of the contracted capacity charge.
Empower: AED 2,000 connection charge + AED 1,000 administration allocation (project/building rules can differ).

Service Charges

Service charges are annual fees paid by property owners to cover the management, operation, and maintenance of common areas in jointly owned buildings and master communities. In Dubai, the approved service charges for a project can be checked using the Dubai Land Department’s Service Charge Index (RERA-approved), and the standard way to estimate the total is to multiply the approved rate (AED per sq ft per year) by the unit’s area.

Why These Costs Matter Before You Commit

These costs explain why the listing price is not the real total when buying property in Dubai. The fees do not arrive in one place or at one time, because some are paid at transfer, others appear during approvals, and others start after utilities and building services are activated. When buyers plan for them early, the budget stays clear, decisions feel easier, and the deal moves forward without last-minute surprises.

Conclusion

Buying property in Dubai stays simple once the full cost is planned, because the listing price is only the start, and the rest comes in steps through DLD, the trustee centre, the bank, the developer, and the building manager. A clear budget that includes Dubai property buyer fees, plus a written check of who pays what, turns hidden costs when buying property in Dubai into expected costs, and the total cost of buying property in Dubai becomes a number that makes sense before any commitment is made.

Don’t let hidden fees surprise you. Contact our team and partner with us for a transparent property journey.

What are the hidden costs when buying property in Dubai?