The cost of buying property in United Arab Emirates: taxes & fees
Buying a property in the United Arab Emirates involves several costs beyond the asking price. Knowing these expenses is essential for effective financial planning.
This guide outlines one-off purchase costs, recurring ownership costs, and provides practical examples to help you budget effectively. Please consult a qualified local lawyer or accountant for specific advice.
One-off Purchase Costs
When buying property in the UAE, you should expect to pay several one-off costs, which can amount to a significant percentage of the property's price. Key costs include transfer fees, registration fees, and legal fees.
- Transfer fees typically range from 2% to 4% of the purchase price.
- Registration fees can be around 0.25% of the purchase price.
- Legal and conveyancing fees vary but may approximate 1% of the property price.
Estimated Total Purchase Costs
To effectively budget, homeowners should consider total costs of around 5% to 8% above the asking price. This represents a combination of all one-off fees mentioned above.
Worked Example
Assuming a typical property price of 1,174,999 AED, you could expect to pay between 58,750 AED and 93,999 AED in one-off costs.
For example, using an average of 7%, your total purchase cost would be approximately 1,268,998 AED or more.
Recurring Costs of Ownership
In addition to the initial purchase costs, there are ongoing expenses associated with property ownership. These can vary depending on location and property type.
- Annual property tax is generally low or non-existent for most residential properties.
- Community fees for condominium buildings often range from 20,000 AED to over 50,000 AED annually.
- Utilities (water, electricity, internet) can amount to approximately 500 AED to 1,500 AED monthly.
Mortgage Costs for Non-residents
Purchasers who are non-residents can obtain mortgages in the UAE, but terms may vary significantly based on the lender. Commonly, non-residents can expect a lower Loan-to-Value ratio, usually around 60% to 75%.
Interest rates can fluctuate and are typically higher for non-residents, so it's advisable to shop around and consult financial experts.
Frequently asked questions
What is the approximate range of one-off purchase costs in the UAE?
One-off purchase costs typically range from 5% to 8% of the property price.
Are there ongoing ownership costs I should consider?
Yes, ongoing costs may include community fees, utilities, and insurance, in addition to any applicable property taxes.
Can non-residents obtain mortgages in the UAE?
Yes, non-residents can obtain mortgages, usually with a lower Loan-to-Value ratio and potentially higher interest rates.
What is the typical duration for property registration in the UAE?
Property registration can take anywhere from a few days to a couple of weeks, depending on the complexity of the transaction.
Are there legal requirements I should be aware of when buying property in the UAE?
Yes, it is advisable to work with a local lawyer to ensure compliance with all legal requirements during the buying process.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed August 2026.