Last Updated on September 24, 2026 by Shitiz Srivastava
Dubai does not charge a purchase tax on property. Instead, you pay a one-time 4% transfer fee to the Dubai Land Department (DLD), plus a few smaller registration and service charges. There is also no annual property tax, no tax on rental income for individuals, and no capital gains tax when you sell. But “no tax in Dubai” does not always mean “no tax at all”, especially if you are still a tax resident of India.
The DLD transfer fee: 4% of the price
The biggest government charge on any Dubai property purchase is the DLD transfer fee of 4% of the purchase price. It is a registration fee, not a tax, and it is paid once when ownership is transferred. By market custom the buyer pays the full 4%, although buyer and seller can agree to split it in the contract. Some developers pay part or all of it as a promotion on off-plan sales. On a AED 1.5 million apartment, the fee is AED 60,000.
Other charges when you buy
| Charge | Typical amount |
|---|---|
| DLD transfer fee | 4% of the price |
| Title deed / registration admin | Around AED 580 for ready property |
| Trustee office fee | AED 2,000 + VAT below AED 500,000; AED 4,000 + VAT at AED 500,000 and above |
| Agent commission | Usually 2% + VAT |
| Mortgage registration (if financing) | 0.25% of the loan + AED 290 |
| Bank fees (if financing) | Arrangement fee up to 1% of the loan, plus valuation |
Altogether, expect to pay roughly 6% to 8% on top of the price, and more with a mortgage. Work out your exact figure with our Dubai property purchase cost calculator, and see the 7 costs buyers most often forget.
Is there VAT on buying property?
- New residential property: the first sale within three years of completion is zero-rated, so no VAT is charged.
- Resale residential property: exempt from VAT.
- Commercial property (offices, shops, warehouses): standard-rated at 5% VAT.
VAT does apply to services around the purchase, such as agent commission and trustee fees.
After you buy: no annual tax, but some exceptions
Individuals who own residential property in Dubai pay no annual property tax, no tax on rent and no capital gains tax on sale. Owners do pay yearly service charges and a municipality housing fee, which are fees rather than taxes. See the yearly costs of owning an apartment in Dubai.
Two exceptions matter:
- Owning through a company. Rental income and gains earned by a company can fall under UAE corporate tax at 9% on profits above AED 375,000.
- Being a tax resident of India. India taxes its residents on worldwide income. If you are an Indian tax resident, rent from your Dubai flat and any gain when you sell are taxable in India, and because the UAE charges no tax on them, there is no foreign tax credit to offset. You must also report the property in Schedule FA of your Indian return. Leaving it out can trigger penalties under the Black Money Act. Read our NRI tax guide for Indians in Dubai.
In short: Dubai charges no purchase tax, but budget about 4% for the DLD fee and 6% to 8% in total for all purchase costs. If you are an Indian tax resident, plan for Indian tax on the rent and the sale.
Also Read : Dubai Property Tax: A Complete Guide for Investors
