How Much Is Property Transfer Fees In Dubai?

The property transfer fee is a required payment that every buyer must make to the Dubai Land Department (DLD) when they officially take over ownership of a property from the seller. It is part of the final, official process for registering the property, and you must pay it whether the property is already built (ready) or is still being constructed (off-plan). When people ask about "property registration fees in Dubai," they are usually talking about this same transfer fee that is charged when the ownership changes hands.

How much is the fee?

• The fee is currently 4% of the property's sale price.

The fee for transferring property in Dubai is a fixed 4% of the property's sale price. This percentage is the same for every type of property, whether you are buying an apartment, a villa, a townhouse, a plot of land, or a commercial office space. Here are a couple of examples of how the fee is calculated:

Remember: You pay these fees directly to the Dubai Land Department (DLD) when the ownership is officially switched to your name.

By Dubai market practice, the buyer usually pays the 4% DLD transfer fee. However, in some cases, especially with off-plan launches or promotional offers, developers may cover a part of the fee or even offer 100% DLD waiver. This is why many people search for “Dubai real estate transfer charges” to understand who pays what during the transaction.

Besides the main 4% transfer fee, there are several other smaller, but important, charges that are part of the property buying process. These are fixed fees and costs for services that you should include in your total budget:

1. Dubai Land Department (DLD) Charges

• DLD Admin Fee (Title Deed Issuance): A standard fee of approximately AED 580 is charged by the DLD to officially issue the ownership document (Title Deed) in your name.

• Trustee Office Fee (Property Registration): The final registration takes place at a DLD-approved Trustee Office, which charges a service fee for handling the transaction:

  • AED 2,000 plus VAT for properties below AED 500,000

  • AED 4,000 plus VAT for properties above AED 500,000

2. Service & Commission Costs

• Real Estate Agent Commission: Buyers typically pay the real estate agent a commission of 2% of the property value (plus 5% VAT), unless you negotiate a different arrangement.

• Mortgage Registration Fee (If Applicable): If you are taking out a home loan, you must pay the DLD a fee to register the mortgage:

  • 0.25% of the loan value + AED 290 DLD admin fee.

The fees for properties that are still off-plan are generally the same as for ready properties.

• The 4% transfer fee is typically paid when you sign the main purchase contract (Sales and Purchase Agreement or SPA).

• However, many major property developers frequently offer a DLD fee waiver. This means the developer pays the 4% fee for you, which can save you tens of thousands of dirhams upfront.

Remember: Before buying an off-plan property, you should always ask about the latest deals. Developers often include a full or partial waiver of the DLD transfer fee as part of their promotions to attract early buyers.
 

Understanding the charges from the Dubai Land Department (DLD) helps you clearly plan the full cost of your investment. Many people buying their first property only focus on the listed price and forget about these extra costs, which can add up to a significant amount of money. Knowing the transfer fee and all other related charges ensures you have:

• No Unexpected Costs: You won't face any surprises when you're closing the deal.

• Easy Registration: The official process of registering the property will go smoothly.

• Good Financial Planning: You can budget your money accurately from the start.

• Correct Profit Calculation: You can calculate your potential return on investment (ROI) more precisely.

So, the simple answer to "How much is the property transfer fee in Dubai?" is that it is 4% of the property's sale price, plus a few minor administrative charges. The fee structure stays the same, whether you are buying a property that is already finished or one that is still under construction (off-plan). By understanding what the transfer fee and all other related costs are, you can make smarter decisions about real estate and correctly plan the budget for your investment.