VAT
VAT (value added tax) is the UAE’s consumption tax. For property, whether it applies depends on the type of property and the supply.
Definition
The Federal Tax Authority states: “The VAT treatment of real estate will depend on whether it is a commercial or residential property.” Commercial property sales and leases are “taxable at the standard VAT rate (i.e 5%)”; residential properties “will generally be exempt”; and the first supply of a residential property within 3 years of completion is zero-rated. On DLD’s pages, VAT appears on the service partner fees, for example “AED 4,000 + VAT”.
What it shows — and what it does not
Whether VAT applies to the price depends on the property type and the supply; the VAT lines on DLD’s fee list apply to the service partner fees. For your own position, check with a tax adviser.
Example
Illustrative example: on a resale apartment, the price itself generally carries no VAT, while the trustee office’s service partner fee is charged plus VAT.
Next step
See the fee lines in transfer fees and payment methods.
Source: FAQ: How will real estate be treated? — Federal Tax Authority · supports: commercial vs residential treatment and zero-rating · checked 11 October 2026
Source: Property Sale Registration — Dubai Land Department · supports: VAT on service partner fees · checked 11 October 2026
Governance
- October 11, 2026
Maintenance: Updated for material UAE authority/trustee process changes and recurring user confusion. Method: Editorial Policy