What Is The Property Transfer Tax In UAE?

The UAE does not charge annual property tax on real estate ownership. There is also no capital gains tax on property sales for individuals. This is one of the biggest reasons why international investors are attracted to the country’s real estate market.

Instead of yearly taxation, the government charges a one-time transfer fee when a property is bought or sold. This makes the system simpler and more predictable compared to countries where property owners pay recurring annual taxes.

In Dubai, the property transfer fee is set by the Dubai Land Department (DLD). The standard transfer fee is 4% of the property’s purchase price. This is mandatory and must be paid during the ownership transfer process.

For example, if you are buying an apartment worth AED 1,000,000, the 4% DLD transfer fee would be AED 40,000. This amount is paid at the time of transfer, usually at a registered trustee office approved by the Dubai Land Department. In addition to the 4% fee, there is a small administrative charge, typically between AED 2,000 and AED 4,000 depending on the property value.

A common question buyers ask is whether the buyer or seller pays the transfer fee. In most cases, the buyer pays the full 4%. However, this can sometimes be negotiated. In certain off-plan projects, developers may offer to cover part of the DLD fee as a promotional incentive. This is more common during market slowdowns or new project launches. Still, unless clearly agreed in writing, buyers should assume they are responsible for the 4% fee.

It doesn't really matter if you’re looking at a brand-new project or a house that’s already built, you’re still going to have to deal with that 4% DLD fee either way. The only thing that changes is the timing. If the place is ready, you pay when you’re signing the final papers at the trustee office. But if you're buying off-plan, you’ll usually clear that fee right at the start when you sign with the developer. In the end, the hit to your wallet is exactly the same.

Let’s look at a practical example. Suppose you are buying a villa in Dubai worth AED 2,500,000. The 4% transfer fee would be AED 100,000. In addition, you may pay around AED 4,000 as trustee fees and some minor administrative costs.

If you are financing the purchase with a mortgage, there will also be a mortgage registration fee. This is typically 0.25% of the loan amount plus a small administrative charge. So if your loan is AED 1,500,000, the mortgage registration fee would be AED 3,750 plus admin costs.

When planning your budget, it is wise to allocate around 6–7% of the property value to cover all transaction-related expenses. This includes the 4% DLD transfer fee, agency commission (usually 2%), trustee fees and other related charges.

Yes, transfer fees can vary slightly across different emirates. For example, in Abu Dhabi, the transfer fee is generally 2% of the property value. However, Dubai remains the most active and internationally recognized real estate market in the UAE and the 4% DLD fee is widely known among global investors.

Even with the 4% transfer fee, Dubai remains competitive compared to global markets. In many countries, property owners pay annual taxes of 1–2% of the property value, along with capital gains tax upon sale. Dubai does not impose these recurring taxes on individuals.

In 2025, the city continues to record strong transaction volumes due to high demand from foreign buyers, long-term residency visa programs and overall economic stability. The consistency of the 4% transfer fee over the years has also created transparency and confidence in the system.

Wondering about property tax in the UAE? Here’s the deal: it’s not a yearly bill you have to worry about. It’s just a one-off 4% transfer fee when the title changes hands. If you’re buying in Dubai, that 4% goes straight to the DLD (Land Department).