A lot of people think buying property in the UAE means no taxes at all — and that’s kind of true, but not entirely. While it’s true you won’t get hit with an annual property tax bill, there are still plenty of one-time fees and ongoing costs to plan for.
Here’s a clear, down-to-earth guide to what you’ll really be paying — and when.
So… Is There Property Tax in the UAE?
The short answer? No annual property tax here.
You won’t be billed yearly just for owning a home, which is great news — and one of the reasons international investors love this market.
But that doesn’t mean ownership is free of costs. There are upfront payments you’ll make when buying and recurring charges that come later, like service fees.
One-Time Costs You’ll Pay When Buying
Let’s be honest — the purchase price isn’t the whole story. Several fees get added during the process, and they can take you by surprise if you’re not ready.
Here’s what typically comes up:
1.Dubai Land Department (DLD) Transfer Fee: 4% of the property value (plus AED 580 admin fee)
2.Real Estate Agent Commission: Usually around 2%
3.NOC Fee (No Objection Certificate): AED 500 to AED 5,000, depending on the developer
4.Title Deed Issuance Fee: AED 250
5.Trustee Office Fee: Roughly AED 4,000
All in, these extras can tack on about 6–8% of the sale price. It’s important to factor that into your budget early on.
Service Charges: What Are They and Why Do You Pay Them?
Once you get the keys, the bills don’t stop. Every property in the UAE has service charges, which cover maintenance of shared spaces — think lobbies, elevators, security, cleaning, etc.
You’ll be billed based on the square footage of your unit. Costs vary widely depending on where you buy — high-end areas like Downtown Dubai usually charge more than mid-range neighborhoods like JVC or Dubailand.
What About VAT?
Buying Off-Plan? Don’t Assume It’s Fee-Free
Off-plan projects often come with perks — like waived registration or discounted fees — but those are usually limited-time offers. If the developer isn’t covering the DLD fee, you’re still paying 4%.
Also, watch your payment schedule. Missed installments during construction can result in penalty charges.
The Sneaky Fees Buyers Often Miss
Even savvy buyers sometimes forget to include a few low-key costs that add up fast. These include:
1.Setting up utilities (like DEWA or ADDC)
2.District cooling deposits (if applicable to your building)
3.Furniture & interior fit-out
4.Home insurance (optional, but smart)
At Bhgroup, we walk our clients through these in advance so nothing slips through the cracks.
Final Thoughts
Owning property in the UAE has some serious advantages — especially the absence of annual property tax. But it’s important to understand the fees you will pay, both upfront and over time.
When you know what to expect, budgeting becomes easier and less stressful.
Thinking about buying? We’ll give you a clear breakdown of all costs involved, so there are no surprises along the way.
Let’s talk — and make sure you’re fully informed from day one.