Taxes and Fees for Real Estate Investors in Dubai: What You Need to Know in 2025

Introduction

Dubai is famous for being a tax-friendly environment for investors — and that’s a big reason why real estate here continues to attract buyers from around the world. But while there’s no income or capital gains tax, there are still some costs every property investor must be aware of. Here’s a full breakdown of real estate taxes and fees in Dubai for 2025.

1. No Property Tax or Capital Gains Tax

One of the biggest advantages of investing in Dubai is that there is:

• No annual property tax

• No capital gains tax when you sell your property

• No income tax on rental income

This is a huge benefit compared to most other global markets.

2. Dubai Land Department (DLD) Fee

This is a one-time fee paid during the purchase:

• 4% of the property price (usually split 50/50 between buyer and seller)

• Paid to the Dubai Land Department at the time of registering the property

3. Registration Fee

• Typically AED 2,000 – AED 4,000 depending on the value of the property

• Paid to register the property in your name

4. Real Estate Agency Commission

• Usually 2% of the purchase price

• Paid to the broker or agency facilitating the transaction

5. Mortgage-Related Fees (if applicable)

If you’re financing your property, expect:

• 1% mortgage registration fee (based on loan amount)

• Property valuation fee: AED 2,500–3,500

• Processing fees from banks: ~0.5%–1% of loan amount

6. Annual Service Charges

• Charged by the developer or building management

• Ranges from AED 10 to AED 30+ per sq. ft. per year depending on location and property type

• Covers maintenance, cleaning, security, etc.

7. VAT (Value Added Tax)

• Most residential property transactions are VAT-exempt

• But commercial properties and off-plan resales within 3 years of completion may include 5% VAT

Conclusion

While Dubai offers zero recurring property tax, investors should still budget for one-time costs like DLD fees, agency commissions, and service charges. Overall, the total cost of buying and holding property in Dubai is still much lower than in major global cities — making it a tax-efficient choice for real estate investors in 2025.