DLD Fees & Total Purchase Costs Explained

The advertised price is never the price you pay. In Dubai the add-on costs run roughly 6-8% for a cash buyer and 7.5-9% with a mortgage. Here is every line, what it is, and who charges it — so nothing surprises you at the trustee office.

The government costs (Dubai Land Department)

1. DLD transfer fee — 4% of the purchase price. This is the big one, paid to the DLD at registration. Legally split 2%/2% between buyer and seller, but in practice the buyer almost always pays the full 4%. On a 1,500,000 AED property that is 60,000 AED.

2. Property registration (trustee office) fee. Charged by the DLD-registered trustee that processes the transfer:

• 2,000 AED + 5% VAT for property under 500,000
• 4,000 AED + 5% VAT for property at or above 500,000

3. Title deed issuance — around 580 AED for a ready property.

4. Off-plan (Oqood) registration — around 3,000 AED admin, in place of the title deed while the unit is under construction.

The mortgage costs (only if you finance)

5. Mortgage registration at DLD — 0.25% of the loan amount + 290 AED. On a 1,200,000 loan that is 3,290 AED.

6. Bank arrangement / processing fee — 0.5-1% of the loan + 5% VAT. On a 1,200,000 loan, roughly 6,000-12,000 AED plus VAT.

7. Valuation fee — 2,500-3,500 AED + VAT.

8. Life and property insurance — mandatory, priced on loan size and age; life cover is often a small annual percentage of the outstanding balance.

The service costs

9. Agency commission — 2% of the price + 5% VAT. On 1,500,000 that is 30,000 + VAT. Standard in the secondary market; usually waived when you buy off-plan directly from a developer.

10. Developer NOC fee — 500 to 5,000 AED (secondary sales), paid to obtain the No Objection Certificate confirming service charges are clear.

11. Conveyancing / legal (optional but advised) — 6,000-10,000 AED for independent representation, more for complex or remote deals.

Worked example A — cash buyer, 1,500,000 AED ready apartment

• Price: 1,500,000
• DLD 4%: 60,000
• Trustee fee: 4,000 + VAT
• Title deed: 580
• Agency 2%: 30,000 + VAT
• NOC: ~1,000

Total add-on ≈ 97,000 AED, about 6.5%. All-in ≈ 1,597,000 AED.

Worked example B — 80% mortgage, 1,500,000 AED ready apartment

Add to the cash costs above:

• Deposit (20%): 300,000 (not a fee — it is your equity)
• Mortgage registration 0.25% of 1,200,000 + 290: 3,290
• Bank arrangement ~1%: 12,000 + VAT
• Valuation: ~3,000 + VAT
• Insurance: variable

Total add-on fees ≈ 116,000-120,000 AED, about 7.8% on top of the price, with 300,000 equity funded separately.

The recurring costs people forget

These are not closing costs, but budget them from day one:

• Service charges — 12-30 AED per sqft per year, set by the building's owners association and billed via the DLD's Mollak system. A 1,000 sqft apartment at 18 AED/sqft is 18,000 AED/year.
• Chiller / district cooling where applicable.
• DEWA connection deposit and ongoing utilities.

What Dubai does NOT charge

Worth stating plainly, because it drives the numbers:

• No annual property tax.
• No capital gains tax on resale.
• No inheritance tax in the conventional sense.

This is why the one-time ~7% entry cost is the figure that matters — after that, the ongoing burden is service charges, not taxation.

The rule of thumb

Budget price + 7% for a cash purchase and price + 8% if you finance, then add your deposit on top. Ask any agent for a written cost sheet before you sign Form F, and reconcile it against these lines. If a charge appears that is not on this list, ask what it is and to whom it is paid.