DLD 4%, VAT, the trustee, the agent and the service charge, added up on a real deal size. On a AED 2,000,000 ready office the one-off bill is AED 130K before VAT.
Aleksandr Maksimenko · Licensed broker · OSNOVA Property · Dubai · Updated 14 Nov 2026
One-off costs on AED 2M
AED 130K
6.5% of the price, before VAT
VAT on commercial
5%
of the price, if the seller is VAT-registered
Median office deal 2026
AED 2.39M
4,332 office sales registered with DLD
Ready office, median
1,764 AED
per sq ft paid, 1,569 deals
What you pay on a AED 2,000,000 ready office
The price on the listing is not the cheque you write. Here is the full one-off bill on a ready office at AED 2,000,000, roughly 1,000 sq ft at the citywide paid rate for ready units in 2026.
Item
How it is charged
AED
DLD transfer fee
4% of the price
80,000
DLD admin fee, ready unit
fixed
580
Title deed and knowledge fees
fixed
270
Trustee office (registration trustee)
AED 4,200 + 5% VAT
4,410
Agency fee, buyer side
2% + 5% VAT
42,000
Mortgage registration, if 50% loan
0.25% of loan + AED 290
2,790
Total before VAT
6.5% of the price
130,050
VAT is the line most buyers miss. The sale of commercial property in the UAE is standard-rated at 5%. If the seller is VAT-registered, that is another AED 100K on this deal. A buyer who registers for VAT and leases the office out can usually recover it as input tax. Residential property is different: its resale is exempt.
Off-plan: what changes
On an off-plan office DLD registers the sale in Oqood. The 4% fee is still due, usually at booking, and the admin fee is AED 40 instead of AED 580. Some developers absorb part of the 4% as a promotion. VAT applies to the developer price.
What you pay every year
Service charge. Set per building and published in the DLD service charge index (Mollak). For offices it is commonly AED 15 to 30 per sq ft a year; ask for the last two invoices before you sign.
Chiller or district cooling, if billed separately from DEWA. In some towers it is a large share of running costs.
VAT on rent. Commercial rent carries 5% VAT. You must register for VAT once taxable supplies exceed AED 375,000 a year.
Vacancy and agency on letting, typically 5% of annual rent to the letting agent.
How to keep the bill down
Check whether the seller is VAT-registered and whether the sale can be a transfer of a going concern (a leased unit sold with its tenant), which is outside the scope of VAT if the conditions are met.
Negotiate the price against what was paid in the same building, not against the asking price. A 5% saving on the price is worth more than every fee on this page except DLD.
Ask the developer to cover the 4% on off-plan. It is common in slower months.
Want the full bill for a unit you are looking at?
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Questions buyers ask
How much is the DLD fee for an office in Dubai?
The transfer fee is 4% of the price plus an admin fee of AED 580 for a ready unit or AED 40 for off-plan. In practice the buyer pays the full 4%.
Do I pay VAT when buying an office in Dubai?
Usually yes. Commercial property is standard-rated at 5%. If the seller is not VAT-registered, for example a private individual with no taxable rental income, no VAT is charged.
What is the total cost of buying an office in Dubai?
On a AED 2M ready office the one-off costs are about AED 130K, or 6.5% of the price, before VAT. With 5% VAT the total is about AED 230K.
Who pays the service charge?
The owner. In most office leases the landlord pays it out of the rent, so it reduces your net yield.
Transactions: Dubai Land Department, commercial units (offices, shops, showrooms, warehouses), deduplicated, medians. Rents: Ejari new single-unit leases. Fees reflect published DLD and market practice at the date above; confirm with your trustee office before you sign. Not investment, legal or tax advice.