When people talk about the cost of buying in Dubai, they usually mean the Dubai Land Department (DLD) fees. These are the government registration charges that transfer the property into your name — and the headline 4% is the single biggest line. Here is exactly what the DLD charges, with the small print most agents skim over.
The big one: the 4% transfer fee
The DLD transfer fee is 4% of the property price. It is what registers the sale and gets the title deed issued in your name. There is no VAT on it — it is a government fee, not a service. By long-standing custom the buyer pays the full 4%; legally it can be split between buyer and seller, but in practice you should budget for all of it unless you have specifically negotiated otherwise.
DLD admin charges
On top of the 4%, the DLD adds a small bundle of fixed administrative charges of around AED 580. This covers things like title-deed issuance. It is a flat amount, so it barely moves whether you are buying a studio or a villa.
The registration trustee fee
Transfers are completed at a registration trustee office, which collects a fee on the DLD's behalf. It is tiered by price:
- Below AED 500,000: AED 2,000 + 5% VAT.
- AED 500,000 or above: AED 4,000 + 5% VAT — so AED 4,200.
This is the one government line that carries VAT, because it is a service fee charged by the trustee office.
Mortgage registration fee (only if you finance)
If you buy with a mortgage, the DLD also registers the lender's charge over the property. That costs 0.25% of the loan amount + a fixed AED 290. Cash buyers skip this entirely. If you are still sizing your loan and deposit, our deposit guide shows how the Loan-to-Value caps set the loan amount this fee is based on.
Off-plan: paid through Oqood
Buying off-plan from a developer? The same 4% applies, but it is paid via interim Oqood registration with the DLD — the system that records your interest in a unit that isn't built yet. The headline rate is identical; only the registration mechanism differs.
A worked example
Take a ready property at AED 1,500,000, bought with a AED 1,200,000 mortgage. The DLD/government side looks like this:
- 4% transfer fee: AED 60,000
- DLD admin charges: ~AED 580
- Registration trustee (AED 4,000 + 5% VAT): AED 4,200
- Mortgage registration (0.25% × 1,200,000 + AED 290): AED 3,290
That is a government/registration subtotal of about AED 68,070 — roughly 4.5% of the price. Note this is the DLD/government portion only.
What is NOT a DLD fee
Plenty of the costs people lump in with "DLD fees" aren't government charges at all. The agency commission (typically 2% + VAT, a market standard you can negotiate), the bank valuation and the bank arrangement fee are all paid to private parties, not the Land Department. Add those in and the all-in cost of buying rises to roughly 6–8% of the price. For that complete picture, see our full cost of buying in Dubai guide — this page deliberately stays on the government fees only.
Run your numbers
Want the exact DLD bill for a specific price and loan? Drop your figures into the Dubai cost calculator — it itemises every line above (and the non-DLD ones) so you know precisely what to set aside before you sign.