Understanding how Dubai Land Department transfer fees are actually split helps buyers, sellers, landlords and tenants budget accurately for a transaction. EGSH, as a one‑stop government services centre in Dubai, supports clients in applying these rules correctly when registering their deals with DLD.
This article explains the official DLD 4% transfer fee structure, the situations in which the “2% + 2%” split applies, and how it translates into practical numbers for a typical sale. It also distinguishes DLD’s rules from private commercial arrangements between the parties and shows how EGSH can help you choose the right DLD eService and estimate your Dubai property registration fee 4%.
Understanding the DLD 4% Transfer-Related Fee
For standard property sale registration in Dubai, the Dubai Land Department’s official schedule sets the sale registration fee at 2% of the sale value, payable by both the seller and the buyer. In other words, the DLD 4% transfer fee is collected structurally as two separate 2% charges on each contracting party, calculated on the declared transaction amount.
Alongside the percentage fee, DLD’s “Request for sale registration” service lists fixed amounts that apply regardless of the percentage fee. The Dubai Land Department title deed fee is AED 250 for issuing the Title Deed certificate. There is a unified land map fee of AED 225 for plots under Dubai Municipality or AED 100 for land outside its jurisdiction, and an AED 250 map fee for villas and apartments, plus an AED 10 knowledge fee and an AED 10 innovation fee. These fixed items are charged in addition to, not instead of, the 2% + 2% structure.
All percentage-based Dubai Land Department transfer fees are applied to the sale price declared in the registration application. Any under‑declaration can lead to non‑acceptance of the transaction or later rectification requirements. The fixed fees are applied per service as set in the current DLD schedule and may be updated, so the figures should always be checked at the time of filing.
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Where Does the 2% + 2% Rule Apply? Overview of Key DLD Services
Reviewing multiple DLD eServices shows a consistent pattern: in most services where a real estate right is transferred or granted, DLD allocates 2% of the value to the party disposing of the right and 2% to the party acquiring it. This DLD transfer fee split applies not only to ordinary sales but also to off‑plan, mortgage‑linked, auction, and long‑term rights registrations.
Standard Sale Registration and Dubai Now
The standard “Request for sale registration” and the “Buy or sell property via Dubai Now” channel both apply the same core rule: the seller pays 2% of the transaction value, and the buyer pays 2%. For Dubai Now property sale fees, the schedule adds AED 250 for the Title Deed and AED 250 for the villa or apartment map, plus AED 30 innovation fee and AED 30 knowledge fee.
In addition, for Dubai Now, service-partner fees are currently AED 1,000 + VAT where the transaction value is at least AED 500,000, or AED 500 + VAT where it is less. These partner fees relate to the digital channel and are separate from the government 2% + 2% fee.
Off-Plan Initial Sale Registration
For DLD off-plan sale registration fee under the “Request to register the initial sale” service, the schedule again shows 2% of the sale value payable by the seller and 2% by the purchaser. This reflects the same total 4% charge already at the provisional, off‑plan stage, before the final Title Deed is issued.
Sale With Initial Mortgage and Company-Share Transactions
Where a sale is associated with an initial mortgage, DLD’s dedicated service maintains the same basis: the seller pays 2% of the sale value, and the purchaser pays 2%, in addition to any mortgage registration fee that applies under the mortgage schedule. In “Company shares sale” transactions, where the subject is shares in a property‑owning company, the DLD sale registration 2% + 2% rule is also applied, so each side pays 2% of the share sale value recorded with DLD.
Auction, Lease-To-Own, and Long-Term Usufruct / Musataha
For “Registration of a property sold by auction”, the seller and purchaser each pay 2% of the sale value, confirming that DLD auction property registration fee rules mirror a standard sale. In “Lease to Own registration” (tenancy ending with the acquisition of title), the seller pays 2% of the sale value, and the purchaser pays 2%, plus a 0.25% fee on the rental value and the relevant fixed fees.
Finally, in the “Usufruct/Musataha right registration” service for long‑term rights, DLD specifies that the owner and the lessee (tenant) each pay 2% of the rental value. This shows that DLD usufruct Musataha fees are split the same way, even when the right is a long‑term lease rather than an outright sale.
| Key DLD Service / Right Type | Party Disposing Of The Right – 2% | Party Acquiring The Right – 2% |
|---|---|---|
| Standard property sale | Seller 2% of sale value | Buyer 2% of sale value |
| Sale via Dubai Now | Seller 2% | Buyer 2% |
| Initial / off‑plan sale registration | Developer / seller 2% | Purchaser 2% |
| Sale linked to initial mortgage | Seller 2% | Purchaser 2% |
| Company shares sale involving real estate | Share seller 2% | Share purchaser 2% |
| Registration of property sold in auction | Seller 2% | Purchaser 2% |
| Lease‑to‑own (tenancy ending with title) | Owner / seller 2% of sale value | Buyer / tenant 2% |
| Long‑term usufruct / Musataha | Owner 2% of rental value | Lessee 2% |
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What Exactly Do Buyer and Seller Pay in Practice?
To understand Dubai property buyer closing costs and seller obligations in practice, it helps to translate the official schedule into numbers. Using an illustrative example of a ready property sale at AED 1,000,000 registered under the standard DLD service (not Dubai Now), the seller’s DLD fee is 2% of AED 1,000,000 (AED 20,000), and the buyer’s fee is also AED 20,000.
In addition to these percentages, DLD charges AED 250 for the Title Deed, AED 225 for a unified land map under Dubai Municipality or AED 100 for land outside, or AED 250 for a villa/apartment map, plus AED 10 knowledge fee and AED 10 innovation fee. These fixed amounts are added once per transaction, not per party, and are typically paid at the same time as the percentage-based Dubai property sale registration fees.
If the same AED 1,000,000 deal is registered through Dubai Now, the 2% + 2% structure is unchanged, but the fixed fees follow the Dubai Now schedule: AED 250 Title Deed, AED 250 villa/apartment map, AED 30 knowledge fee, AED 30 innovation fee, and currently AED 1,000 + VAT partner fees because the value is at least AED 500,000. Mortgage registration fees, broker commissions and other professional charges are separate from the DLD transfer fee split and must be checked on the relevant DLD and service-provider schedules.
Why Does DLD Split the Fee? Equal Treatment of Both Parties
The observable structure across DLD services is that a total 4% of the sale or rental value is divided equally between the party giving up a real estate right and the party acquiring it. This applies to standard sales, off‑plan sales, Dubai mortgage sale registration fee services, company-share sales, auctions, lease‑to‑own, and long‑term usufruct or Musataha rights.
In practical terms, this reflects that both sides benefit from formal registration. The buyer or tenant obtains a registered, enforceable interest in the property, while the seller, landlord or previous right‑holder is formally discharged and the land register is updated to reflect their exit from the asset. Operationally, DLD systems are therefore configured to collect 2% from each party rather than charging the whole 4% from only one side.
Any commercial agreement on how the economic burden is shared between the parties is separate from this structure. Even if a contract states that one side will reimburse the other, DLD still applies its own rule that buyer and seller each pay 2% at the point of registration, unless and until DLD amends the official schedule.
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Can One Side Pay All 4%? Clarifying Market Practice vs DLD Rules
Many participants ask whether the buyer can, or must, pay the entire 4% DLD fee. According to the official schedules, the answer is that DLD calculates and allocates 2% against the buyer and 2% against the seller in its systems for the relevant service; it does not change this structure because the parties prefer a different allocation.
In practice, parties sometimes agree in their sale or lease‑to‑own contracts that one party will reimburse the other for all or part of that cost, as part of the overall commercial negotiation on price and expenses. This does not alter how much DLD charges or to whom it technically attributes each 2% fee; it only affects how the parties settle the cost between themselves. Anyone considering such an arrangement should obtain independent legal advice and ensure the allocation is clearly documented before submitting the transaction for registration.
Key Points on the 2% + 2% DLD Fee Split
Across a wide range of services, from straightforward sales to complex long‑term rights, DLD applies a consistent rule: in most cases, the party disposing of the right pays 2%, and the party acquiring it pays 2%, creating a standard 4% transfer-related fee. On top of this, fixed government charges for Title Deeds, maps and knowledge/innovation components apply, and some channels, such as Dubai Now, include partner fees.
The official schedules show that this is a regulatory structure, not merely market custom. Before committing to a transaction, parties should confirm the current Dubai Land Department transfer fees for their specific service on www.dubailand.gov.ae or seek assistance from EGSH to correctly plan the total government cost.
FAQ
How much DLD fee does a property buyer pay in Dubai?
In a standard sale, the buyer pays 2% of the declared sale value as the DLD fee, plus a share of any fixed charges, such as Title Deed, map, knowledge, and innovation fees, as agreed with the seller. For example, on an AED 1,000,000 purchase, the buyer’s percentage fee is AED 20,000, while the fixed fees are relatively small amounts set in the current DLD schedule. Any additional costs, such as bank or broker charges, are separate from the DLD transfer fee split.
How much DLD fee does a property seller pay in Dubai?
The seller is charged 2% of the sale value under DLD’s standard schedule, mirroring the buyer’s 2% charge. On the same AED 1,000,000 example, the seller’s DLD percentage fee would therefore also be AED 20,000. Which party ultimately bears the fixed fees and any reimbursements depends on the sale contract, but does not change DLD’s calculation of 2% from each side.
Is the DLD transfer fee always 2% from the buyer and 2% from the seller?
For the main DLD services dealing with property rights transfers, such as standard sales, off‑plan initial sales, sales with initial mortgages, auctions, company‑share sales and lease‑to‑own, the published schedule shows 2% from the disposer and 2% from the acquirer. In long‑term usufruct and Musataha, the owner and tenant each pay 2% of the rental value rather than the sale price. Parties should always check the latest Dubai Land Department transfer fees for their specific service, as DLD may update the schedule.
Who pays the DLD transfer fee in Dubai for off-plan properties?
For off‑plan properties registered under the “Request to register the initial sale” service, DLD requires the developer or seller to pay 2% of the sale value and the purchaser to pay 2%. This means the total charge at provisional registration remains 4% of the sale value, plus any fixed title or map fees when the final registration occurs. Any agreement to shift part of this cost between buyer and seller must be documented in their off‑plan sale contract.
What are DLD fees for buying property via the Dubai Now app?
When using the Dubai Now app, DLD still applies the same 2% to the seller and 2% to the buyer on the transaction value. In addition, the Dubai Now property sale fees include AED 250 for the Title Deed, AED 250 for the villa or apartment map, AED 30 innovation and AED 30 knowledge fees, plus service-partner fees of AED 1,000 + VAT for deals of at least AED 500,000 or AED 500 + VAT for smaller transactions. These amounts are as per the current DLD Dubai Now schedule.
What are DLD fees for lease-to-own and long-term usufruct contracts?
For DLD lease-to-own registration, the sale-related component is again 2% of the sale value from the seller and 2% from the purchaser when the title is transferred, plus 0.25% of the rental value, and fixed title, map, knowledge, and innovation fees. In long‑term usufruct (Musataha) registrations, DLD specifies that 2% of the rental value is paid by the owner and 2% by the tenant. Both structures follow the general rule that each contracting party pays an equal percentage fee on the value of the right being registered.
Can a buyer negotiate to pay less than 2% DLD transfer fee?
DLD’s systems will still calculate 2% of the sale value against the buyer and 2% against the seller for the relevant service, and these amounts cannot be altered by private negotiation. However, parties can agree in their contract that, for example, the seller will refund part of the buyer’s DLD fee or adjust the purchase price to reflect a different commercial sharing of costs. Such arrangements affect only the settlement between the parties; they do not change how the DLD fee is calculated or who it is technically charged to in the registration records.
Reviewed by
Muneer Juma Al Balushi
Real Estate Registration Trustee Consultant
Muneer Juma Al Balushi has six years of experience in the real estate registration system of the Dubai Land Department. He specialises in accurate, secure, and legally compliant property registration.
This article is intended to provide general information based on official UAE sources, and does not constitute personalised legal advice. Before acting, applicants should verify the current rules and fees directly with the relevant authority or an authorised service centre.
