Fees & Taxes

DLD Fee

DLD Transfer Fee

DLD Fee: The 4% transfer fee charged by the Dubai Land Department on every property purchase, paid at registration.

What is DLD Fee?

The Dubai Land Department (DLD) Fee is a one-time tax of 4% of the property purchase price, charged at the moment of title transfer. Legally the fee is split 2% buyer + 2% seller, but standard Dubai practice is that the buyer absorbs the entire 4%. Payment is made in cashier's cheques at the DLD trustee office on transfer day. The fee is non-negotiable on Dubai purchases and applies regardless of whether the property is residential or commercial, freehold or leasehold, ready or off-plan. For off-plan properties, the equivalent is the 4% Oqood registration fee, paid at handover instead of at SPA signing. Some developer promotions advertise "DLD fee waived" — this is a marketing-funded absorption; the fee is still paid, just by the developer.

Example

On a AED 1,500,000 apartment purchase, the DLD fee is AED 60,000 (4% × 1.5M). This is paid as a manager's cheque at the DLD trustee office on transfer day.

FAQ — DLD Fee

Can I negotiate the DLD fee?+

The 4% rate is fixed by Dubai government. You can negotiate WHO pays it (buyer vs seller split), but the total is non-negotiable. In a buyer's market you may get the seller to cover their legal 2%.

Is the DLD fee tax-deductible?+

Not for UAE personal income (there is none). For corporate entities subject to UAE corporate tax (9% above AED 375k profit), the DLD fee may be capitalized into the property's cost basis but is not directly deductible.

When do I pay the DLD fee?+

At the moment of title transfer at the DLD trustee office. For off-plan, the equivalent Oqood fee is paid at handover (years after SPA signing).