The listing price is half the story. A line-by-line look at the 4% DLD transfer fee, agency commission, registration charges and the service charge that returns every year.
The total cost of a Dubai apartment lands roughly 6-7% above the listing price. If the listing says AED 1,500,000, a little more than that leaves your account, and the difference is made up of a government fee, agency commission and a few registration charges.
None of it is hidden. It is all standard and all predictable, and the only awkward part is how often it gets left out of the budget until the week of transfer. Below are the one-off costs first, then the ones that return every year.
What are the one-off costs of buying in Dubai?
Three items make up almost all of it: the 4% transfer fee paid to the Dubai Land Department (DLD), agency commission of around 2% on a ready home, and trustee and registration charges of roughly AED 4,000. The table below uses common market rates.
| Item | Rate / amount | Example (AED) |
|---|---|---|
| DLD transfer fee | 4% | 60,000 |
| Agency commission | 2% | 30,000 |
| Trustee / registration fee | Fixed + tiered | ~4,000 |
| Total add-on cost (approx.) | ≈ 6.3% | ≈ 94,000 |
What does a mortgage add to the cost?
A mortgage adds three more lines: the bank's arrangement fee, the DLD mortgage registration fee and a valuation fee. Rates differ from bank to bank, so I price these against the current tariff of whichever bank you choose rather than a generic figure. Banks also tend to ask buyers living abroad for a larger down payment, and the share depends on the property value and on your profile.
Off-plan costs, spread over time
Off-plan changes both the rhythm of the payments and the total. You put down around 20%, pay instalments as construction progresses, and the 4% Dubai Land Department transfer fee still applies. Commission drops out, replaced by an admin fee in the AED 3,000 to 6,000 range and an Oqood registration charge of roughly AED 4,000. With commission gone, the add-on cost lands nearer 4.5 to 5% than the 6 to 7% of a ready purchase. Oqood is the DLD's pre-registration system that records an off-plan buyer's right before a title deed exists.
Which costs return every year?
Service charges, letting and management commission, insurance and a maintenance allowance all repeat annually. The service charge is an annual per square metre contribution towards the upkeep of the building's shared areas, and it varies considerably from tower to tower.
- The service charge is calculated per square metre each year and should come off your yield before you compare it with anything.
- If someone runs the tenancy for you, a percentage of the annual rent goes to letting and management.
- It is worth keeping a small allowance for interiors, appliances and furniture.
- Void periods between tenants feed straight into the net figure.
- DEWA utility accounts and deposits usually sit with the tenant, though they land on the owner between tenancies.
Is rental income taxed in Dubai?
No. Dubai charges no personal income tax on rental income and no annual property tax on the owner, which is a large part of why the yields read the way they do. One caveat belongs here: the country where you are tax-resident, whether the Netherlands, Germany, Belgium or Turkey, may still want the income declared. The exemption in Dubai does not cancel an obligation at home, so it is worth checking yours with an accountant.
A sound budget is built in three parts: the listing price, roughly 6-7% of purchase costs on top, and the annual service and management spend. I am Ecem Reyhan, and I have worked in Dubai for two years; around 80% of my buyers live in the Netherlands, Germany, Belgium or Turkey. We work these numbers out together before the decision, so that handover brings no surprises.
Frequently asked questions
What does the DLD fee come to on an AED 1.5 million apartment?
On an apartment valued at AED 1.5 million the transfer fee comes to AED 60,000, which is 4% of the property value. The rate applies to both ready and off-plan purchases and is paid once. Trustee and registration charges of roughly AED 4,000 sit on top of it.
How much should I budget on top of the listing price?
On a ready home, budget roughly 6-7% of the listing price. That covers the 4% DLD transfer fee, around 2% agency commission and registration charges of about AED 4,000. Off-plan drops the commission, so the add-on lands nearer 4.5 to 5%. A mortgage adds an arrangement fee, a registration fee and a valuation.
Is there a tax line among the annual running costs?
No, the annual cost list carries no tax line. Dubai levies no personal income tax on rental income and no annual property tax on the owner, so your yearly load is the service charge, management and maintenance. Your country of tax residence may still require the income to be declared, so check with your accountant.
