The 4% DLD transfer fee explained
The Dubai Land Department (DLD) registration fee, commonly referred to as the "transfer tax", amounts to 4% of the sale price. It is the principal cost item in every property transaction in Dubai.
This fee is due on every transfer of ownership, whether it concerns an apartment, villa, office or plot of land. The fee is calculated on the transaction price as recorded in the MOU (Memorandum of Understanding).
By comparison with Europe: • Netherlands: 2% transfer tax (homes) or 10.4% (other property) • Belgium: 10–12.5% registration duties (depending on the region) • Dubai: 4% DLD fee
Dubai's 4% is thus considerably lower than Belgian registration duties and only slightly higher than the Dutch transfer tax on homes. Moreover, Dubai has no annual property taxes.
Who pays the transfer fees?
Legally, buyer and seller may split the 4% DLD fee (2% each). In practice, however, the MOU almost always stipulates that the buyer pays the full 4%. This is the market standard in Dubai.
For off-plan purchases made directly from the developer, arrangements differ: • Some developers pay the DLD fee as a promotion (effectively 0% for the buyer) • Other developers split the cost 50/50 (2% for the buyer) • The standard is that the buyer pays 4%
Note: developers advertising a "DLD waiver" absorb the 4% as a sales incentive. This is temporary and project-specific. Augusta Properties always informs you transparently about which costs are for your account.
Trustee charges and the transfer process
The transfer of ownership takes place at a DLD Trustee Office, an office authorised by the DLD. The trustee office acts as a neutral party handling the financial and legal settlement.
The trustee fee is: • AED 4,000 + 5% VAT = AED 4,200 for transactions above AED 500,000 • AED 2,000 + 5% VAT = AED 2,100 for transactions below AED 500,000
The transfer process at the trustee:
1. The trustee verifies the identity of buyer and seller (or their authorised representatives) 2. The trustee verifies the Title Deed and checks for attachments or mortgages 3. The buyer hands over manager's cheques for the purchase amount and the DLD fee 4. The seller hands over the original Title Deed 5. The trustee registers the transfer in the DLD system 6. The buyer receives a new Title Deed 7. The seller receives the purchase amount
The entire process at the trustee takes around 1–2 hours. Augusta Properties assists you in choosing the trustee office and is present during the transfer.
Administration charges in detail
In addition to the DLD fee and the trustee fee, there are various small administration charges:
• Title Deed issuance: AED 250 • Map fee (plan of the unit): AED 250 • Knowledge fee: AED 10 • Innovation fee: AED 10 • Admin fee per party: AED 60 • Total fixed administration charges: AED 580
With a mortgage, additional charges apply: • Mortgage registration fee: 0.25% of the mortgage amount • Mortgage admin fee: AED 290
Example calculation of transfer fees for a home of AED 1,500,000: • DLD fee (4%): AED 60,000 • Trustee fee: AED 4,200 • Administration: AED 580 • Total transfer fees: AED 64,780 (4.3% of the purchase price)
These amounts exclude the agency commission (2% + VAT) and any NOC charges.
Transfer fees on off-plan versus existing property
The transfer fees differ somewhat between off-plan and existing property:
For off-plan (new build): • DLD Oqood registration (pre-registration): 4% of the purchase price • Admin fee: AED 1,050 • No NOC required • No trustee fee at initial registration • At handover, the Oqood is converted into a final Title Deed (free of charge)
For existing property (secondary market): • DLD transfer: 4% of the purchase price • Trustee fee: AED 4,200 • Admin fee: AED 580 • NOC from the developer: AED 500–5,000
In both cases the DLD fee is 4%, but with off-plan you save the trustee fee and NOC charges. With existing property, the total costs are therefore slightly higher.