DLD Fees: what buying a property actually costs

The listed price of a property is not what you'll actually pay. When buying an apartment in Dubai, you should expect to add 5–9% on top of the purchase price in mandatory and optional fees. Here's a breakdown of what goes where and why.

Full fee breakdown table

Sample calculation: apartment at AED 1,500,000

Why cash payments are not accepted

The Dubai Land Department requires payment exclusively via bank instruments: a Manager's Cheque or a bank transfer, made on the day of the transaction. This is part of the UAE's anti-money laundering (AML) framework. In practice, you'll need either a UAE bank account or an international wire transfer mechanism — plan ahead.

FAQ

Who pays the DLD transfer fee — the buyer or the seller?

By default in Dubai, the 4% DLD fee is paid by the buyer. However, in certain transactions — particularly with developers or in the luxury segment — both parties may agree to split it 50/50. This is always a matter of negotiation; make sure it's specified in the SPA.

Do you need to pay the DLD fee on an off-plan property before handover?

Yes. When registering an off-plan transaction, an Oqood fee is payable through the DLD (AED 40 base + 4% of the purchase price). This is the equivalent of a transfer fee for properties under construction. Additionally, upon handover of the completed unit, the final Title Deed is registered for AED 250.

Is there VAT on residential property purchases?

No. Residential property is exempt from VAT. The 5% VAT applies to agent services (on their commission) and to commercial real estate. A residential buyer does not pay VAT directly.

How to calculate your total purchase budget?

The formula: Purchase price + 4% DLD fee + AED 4,000 (trustee) + AED 250 (deed). With a mortgage, add: 0.25% × loan amount + AED 290. Bottom line: budget 5–6% on top of the purchase price for a cash deal, and 6–7% for a mortgage. Plus a separate NOC fee if it's a secondary market property with the developer (AED 500–5,000).

When is the DLD fee due?

Payment is made on the day of the transaction at the Trustee Office, by Manager's Cheque or bank transfer. Cash is not accepted. The transaction will not be registered with the DLD until the 4% fee is paid.