REALWorld Law

Taxes

Other costs of acquisition

What costs/charges (other than tax and VAT) are payable on completion of the purchase of real estate and who is responsible for paying these costs and to whom are they payable?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

These could include:

  • Registration dues, such as:
    • Sale and purchase - the seller and purchaser are required to pay registration dues at a rate of between 1% and 4% of the value of the property (typically split equally between the parties). In respect of transfers of off-plan real estate units, the fee is capped at AED 2 million per transaction.
    • Mortgage – one per thousand (ie 0.001%) of the mortgage value and in relation to:
      • Off-plan real estate units or real estate assets subject to Law No. 3 of 2015 (Strata Law) - up to a maximum limit of AED 2 million per transaction
      • All other assets - up to a maximum limit of AED 1 million per transaction

These are payable to the Land Registration Department of the Abu Dhabi Municipality.

  • Agents' fees as per their terms of business
  • Surveyors' fees for carrying out due diligence
  • Lawyers' fees for carrying out due diligence
  • Utility connection fees and such like