Upfront Purchase Costs

• DLD Fee: 4% of purchase price + AED 580 admin fee.
• Registration Fee: AED 4,000 for properties > AED 500k; AED 2,000 for < AED 500k.
• Agency Commission: 2% + VAT.

Recurring Costs (Service Charges)

Service charges cover community maintenance. They vary significantly by location:
Villas: AED 2 - 6 per sq.ft (e.g., Arabian Ranches, Dubai Hills).
Apartments: AED 12 - 30+ per sq.ft (e.g., Downtown, Marina). Luxury towers can exceed AED 50/sq.ft.

Tax Environment

Property Tax: 0% annual property tax.
Capital Gains Tax: 0% on resale profits.
Rental Income Tax: 0% personal income tax (5% VAT applies only to commercial leases).

Conclusion

Dubai's low-tax environment maximizes net returns, though investors must factor in high service charges in luxury apartment towers.