What you actually pay when you buy a home in Dubai

Buying in Dubai is simpler than in many cities: there is no annual property tax and no stamp duty ladder. But there are one-off costs on top of the price, and it helps to know them before you make an offer.

Dubai Land Department fee: 4 percent

The biggest one. The Land Department charges 4 percent of the purchase price to register the sale, plus a small admin fee. It applies to ready homes and to off-plan homes alike. On a home of AED 2,000,000, that is AED 80,000.

Agency fee: usually 2 percent on resale

If you buy a ready home through an agent, the usual fee is 2 percent of the price plus VAT. When you buy a new home directly from the developer, there is normally no agency fee.

Registration trustee

Sales are completed at a registration trustee's office, which charges a fixed fee of a few thousand dirhams plus VAT. Your agent or the developer books the appointment.

Mortgage costs

With a mortgage, add a registration fee of 0.25 percent of the loan, the bank's valuation fee and the bank's own arrangement fee. Banks usually lend up to 80 percent of the value for a first home bought by a resident, and less for non-residents and more expensive homes.

After you buy

Owners pay an annual service charge for the building's upkeep, set per square foot and published for each project, plus utilities. There is no annual property tax.

A good rule of thumb: keep around 7 percent of the price aside for costs, on top of your deposit.

This is general guidance, not legal or financial advice, and fees change. We give every buyer a written cost breakdown for their specific home before they reserve.