What tax will I pay when buying a new property in Dubai?

  1. Registration Fee: Dubai Land Department (DLD) charges a registration fee for registering a new property. For properties purchased from a developer, the fee is usually 4% of the property’s value plus a small administrative fee.
  2. Brokerage Fee: If the transaction is conducted with the help of a real estate agent, a brokerage fee is usually paid, which is usually between 2% and 5% of the value of the property.
  3. VAT (Value Added Tax): VAT in the UAE is currently 5%, but it is not usually applied directly to the purchase value of residential property. However, VAT may be charged on services related to the transaction, such as real estate brokerage fees, legal services and registration costs.
  4. Developer fees: In some cases, especially when buying a property from a developer, there may be additional developer fees.
  5. Mortgage costs