What fees do I need to pay to buy a property in Abu Dhabi

Abu Dhabi laws impose minimal number of municipal charges levied property purchase and that fast-tracks and simplifies the procedure to a great extent. In money terms total amount of additional costs topped the down payment turns to be even less, then in neighboring Dubai. When buying home in Abu Dhabi a customer is advised to reserve about 5% of the price to pay taxes and fees. The estimate covers the charges associated with property acquisition and not involved with selling or maintaining. In Dubai transfer tax only amounts to 4% of the property value.

There are no separate stamp taxes levied in the Emirates, as of April, 2017. What is interesting, not all real estate operations are subject to value added taxation 5%. For instance, sale of new residential units (within 3 years after completion), as well as subsequent sale of existing residential properties and bare land exempt of VAT. But sale of commercial property and leasing are taxed at a 5% rate.

Transfer Tax

As it is said in Resolution No 49, fees and charges for sale and purchase deals in Abu Dhabi filing are determined by Executive Committee and shall be at least 1% and not more than 4% of the transaction value, or if higher the property value as assessed by the relevant Municipality.

Registration fees are charged on a transfer of the title at 2% of the value of the property up to a maximum fee of AED 1.000.000 (USD 227.260) per transaction. The breakdown of payment between seller and purchaser is subject to agreement between parties, however, in practice the purchaser tends to pay the full 2% fee.

Bank Fee for Property Valuation

A customer planning to finance property acquisition via taking mortgage loan is required to apply for banking property valuation. A bank estimates how much money there can be recovered when selling it in a distressed state and on the basis of this amount grants the loan. In other words, a bank valuation helps determine how much it can lend to the borrower. Note, that this estimation is always lower than actual market price.

Typically, banks ask AED 2500 – AED 3000 plus 5% value added tax (VAT) for taking an assessment of residential property and issuing valuation certificate.

Mortgage Registration Fee

Once mortgage has been approved the loan registration is due and amount of commission is calculated as 1 per thousand of the value of the mortgage capped at AED 1.000.000 per transaction. If a mortgage is being redeemed, fee sizing at AED 1.000 is applicable.

Estate Agent's Fee

If the property is being purchased direct from the developer, there are usually no real estate agency fees to pay. In other cases, a buyer will pay 2% of the property price to his broker. The size of the commission is officially fixed, but may vary until it is agreed by the parties unlike wise.

Why turn to brokers until it is not mandatory? Real estate market in the Emirates is flooded with offers by numerous developers, large- and small-scale. In order to identify a reliable one a customer evidently needs a local expert guide and take particular care over considering buying properties under construction.

Title Deed Registration

Title deed is obtained at the final stage of the transaction, after all the charges and fees, accompanying principal payment are settled. It is an official document, where new owner for the property is recognized. It is liable for registration at the Municipality in order to be valid. Standard cost for the service estimates AED 1000.


Real estate sector in the UAE, namely in the Emirate Abu Dhabi, is not so heavily taxed, unlike hospitality or entertainment segment. That is why investing in Abu Dhabi properties is so attractive and as simple as that. There is no taxation, common for many other countries, that arises from capital gain upon the sale of real estate, nor income tax caused be rental income derived and no tax liability, which appears upon dividends being paid to a shareholder in a real estate company.

Still, acquiring residential or commercial properties and lands onsite Abu Dhabi the customers have to pay related taxes as follows:

  1. Municipality fee 2%;
  2. Mortgage registration 0,1% of property value;
  3. Bank mortgage arrangement about 1% +5% VAT;
  4. Property assessment by the bank AED 2500–3000;
  5. Title deed issue AED 1000;
  6. Broker's commission 2%.