Dubai Property Fees and Taxes Explained

One-Time Purchase Costs\n\n| Cost | Rate | Based On |\n|------|------|----------|\n| DLD Transfer Fee | 4% | Property value |\n| Admin Fee | AED 580 | Fixed |\n| Brokerage Fee | 2% | Property value |\n| Trustee Office Fee | AED 4,200 | Fixed |\n| NOC Fee | AED 500-5,000 | Developer |\n| Mortgage Registration | 0.25% + AED 290 | Loan amount |\n\n## Ongoing Costs\n\n- Service charges: AED 5-25 per sqft per year, paid quarterly or annually. Covers building maintenance, security, amenities, and common areas.\n- DEWA (utilities): Electricity and water, billed monthly based on consumption. A typical 2-bedroom apartment costs AED 800-1,500/month.\n- Home insurance: AED 1,000-3,000/year for contents and building cover.\n- Property management: 5-10% of annual rent if leasing through an agency.\n\n## Taxes\n\n- No annual property tax in Dubai.\n- No capital gains tax on property sales.\n- No income tax on rental income.\n- VAT: 5% applies to commercial property transactions and service charges, but not to residential sales or residential rents.\n\n## Selling Costs\n\n- Brokerage fee: 2% of sale price\n- Mortgage discharge fee (if applicable): AED 1,000-3,000\n- NOC for selling off-plan: AED 500-1,000