Tax, fees and paperwork
What Dubai taxes, what it doesn't, and what it costs
No annual property tax, no personal income tax on rent, no capital-gains tax on sale — but a one-off 4% registration fee and recurring service charges. Here is the whole stack, before you commit.
Tax treatment
The tax benefits, stated accurately
Dubai's advantage is real but it is not unconditional: where you are tax-resident still decides your final bill.
No annual property tax, no council tax
No personal income tax in the UAE
One-off transfer cost instead of stamp duty
VAT does not apply to residential sales
Your home country still decides your tax bill
Residency changes the picture
We are not tax or legal advisers. Confirm your own position with a qualified adviser in your country of residence — in Sweden with a skatterådgivare — before you buy.
Costs
DLD, service charges and every other fee
Budget 6–8% of the purchase price in one-off costs on a cash secondary purchase, and 2–5% on a direct off-plan launch where the developer absorbs part of the fees.
| Item | Typical amount | Notes |
|---|---|---|
| DLD transfer fee | 4% of price + AED 580 admin | Dubai Land Department registration. Some developers absorb part of it on off-plan launches — get it in the reservation form. |
| Title deed / Oqood registration | AED 2,000 – AED 4,200 (+5% VAT) | Oqood (interim registration) for off-plan; title deed issuance on ready property. |
| Agency fee | 2% + VAT (secondary) | Usually zero on direct off-plan purchases, where the developer pays the broker. |
| Trustee / conveyancing | AED 4,000 – AED 10,000 | Registration trustee office, conveyancer, and NOC handling. |
| Developer NOC (resale) | AED 500 – AED 5,000 | Required before transfer; confirms service charges are settled. |
| Mortgage costs (if financing) | 0.25% DLD mortgage fee + 0.5–1% bank arrangement + valuation ~AED 3,000 | Non-residents typically 50–60% LTV, 4–6% rate, 15–25 years. |
| Annual service charge | AED 8 – AED 25 / sqft / year | Villas and townhouses at the low end, serviced towers and Palm Jumeirah at the high end. Set by the owners association and audited by the RERA service-charge index. |
| Housing fee & utilities | 5% of annual rent (tenant) + DEWA deposit | Paid by the occupier via DEWA bills, not by the landlord. |
Service charges are the cost most buyers underestimate. A 1,200 sqft apartment at AED 17 per sqft is roughly AED 20,400 a year before management and vacancy — the calculator includes it by default.
Process
The paperwork, step by step
Freehold purchase is open to non-residents with no local sponsor. Off-plan instalments go into a DLD-supervised escrow account.