When you purchase a property in Dubai, do you have a tax on the purchase to the government of Dubai?

Last Updated on September 3, 2026 by Shitiz Srivastava

The initial purchase fee is a big part of what attracts investors to Dubai. One major attraction is that there is no yearly property tax.

Also Read : Dubai Property Tax: A Complete Guide for Investors

And, unlike many countries that have real estate markets, the government of Dubai has no capital gains tax on real estate sales.

So how do you pay?

The government imposes a one-time fee structure at the time of the sale.

The largest of these fees is the Dubai Land Department (DLD) transfer fee, which is 4% of the selling price of your property.

Both the seller and buyer will have to split this fee 50/50.

But, the reality is that the buyer almost always ends up paying for the entire fee based on their contract with the seller.

In addition to the DLD transfer fee, you’ll also need to factor in a number of additional charges for registration, administrative and services.

Some examples include registration fees, trustee office fees and mortgage registration fees (if you’re using a mortgage).

Even though these aren’t “taxes,” they are essentially a government-levied fee for doing business.

For example, the mortgage registration fee is 0.25% of the mortgage amount plus a small administrative fee.

There will also likely be real estate commission fees (usually 2%), and possibly a developer fee if you’re purchasing direct from the developer.

In general, the total upfront cost of purchasing real estate in Dubai is approximately 6% to 8% of the property’s value.

One reason why Dubai is so attractive to international investors (in particular), is the long-term tax efficiency.

After you’ve purchased the property and paid all the initial fees associated with that purchase, there are no other property taxes to worry about.

Likewise, the rental income generated by the property isn’t taxed.

And, when you eventually decide to sell the property, there won’t be any capital gains tax to worry about either.

Thus, Dubai offers an extremely advantageous environment relative to countries such as the U.S. and the U.K. that have numerous levels of tax on investments.

That being said, it would be wise for investors to keep in mind service charges. Service charges are the annual fees you pay to maintain your property and the common areas.

They are not taxes, but they could affect your overall investment returns.

Also Read : Does the UAE Have ZIP Codes?