What fees do you pay on an off-plan property in the UAE?
Buying off-plan from the developer you pay two things: the price in your payment plan, and the government fee for registering the sale. There is no commission for the buyer to pay.
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The fees at a glance
| Where | Government fee when you buy from the developer | Paid to |
|---|---|---|
| Dubai | 4% of the purchase price | Dubai Land Department |
| Abu Dhabi | 2% of the contract value | Department of Municipalities and Transport |
| Sharjah | 4% of the price for buyers who are not UAE or GCC nationals; 2% for UAE and GCC nationals; plus small fixed fees | Sharjah Real Estate Registration Department |
| Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain | Set by that emirate's land department |
What the fee comes to
| Price | Dubai, 4% | Abu Dhabi, 2% |
|---|---|---|
| AED 1,000,000 | AED 40,000 | AED 20,000 |
| AED 2,000,000 | AED 80,000 | AED 40,000 |
| AED 5,000,000 | AED 200,000 | AED 100,000 |
Dubai
In Dubai the buyer pays the Dubai Land Department fee: 4% of the purchase price. It is paid when the sale is entered in the Interim Property Register (Oqood). Your contract shows any admin fee the developer charges for filing it.
Is there VAT on an off-plan property?
A home bought off-plan from the developer carries 0% VAT: the Federal Tax Authority treats the first sale of a residential building as zero-rated. Commercial property, such as offices and shops, carries 5% VAT.
If a bank finances the purchase (Dubai)
The Dubai Land Department charges 0.25% of the loan amount to register the mortgage.
Abu Dhabi
In Abu Dhabi the registration fee is 2% of the contract value, paid when the sale is registered with the Department of Municipalities and Transport.
Sharjah
In Sharjah a buyer who is not a UAE or GCC national pays 4% of the price. A UAE or GCC national pays 2%. Small fixed fees are added, and both are paid to the Sharjah Real Estate Registration Department.
Sharjah Real Estate Registration Department, frequently asked questions →
The other emirates
In Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain the fee is set by that emirate's land department. Ask us for the figure on the project you are looking at.
Buying a resale
Buying an off-plan unit from another owner instead of from the developer is a resale, and there is broker commission on it. Who pays it and how much is agreed in the contract, not set by law. Dubai has a contract between seller and broker, one between buyer and broker, and one between seller and buyer.
After handover
Once the building is handed over there is a yearly service charge, set for each building. In Dubai the Real Estate Regulatory Agency approves each building's service charge, and the Land Department publishes it in its Service Charge Index.
How much is the Dubai Land Department fee on an AED 2 million off-plan apartment?
AED 80,000: 4% of the purchase price.
Off-plan fees
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