Calculate exactly what you will receive after selling your Dubai property. Includes mortgage payoff, NOC fees, agent commission, outstanding service charges, and all seller-side costs, so you know your true net profit before you list.
Selling property in Dubai is relatively straightforward from a cost perspective. Unlike many global markets, sellers in Dubai do NOT pay the transfer fee (4% DLD), this is market convention and is borne by the buyer. This gives Dubai sellers a significant advantage compared to markets like the UK or US where sellers often pay substantial transaction fees.
The main cost for sellers is settling any outstanding mortgage balance. The UAE Central Bank caps early mortgage settlement penalties at 3% of the outstanding balance (or AED 10,000, whichever is lower), protecting sellers from excessive break costs.
There is also no capital gains tax in the UAE, any profit from a Dubai property sale is entirely yours to keep (subject to your home country's tax rules if applicable).
By market convention, the buyer pays agent commission in Dubai. However, sellers sometimes agree to pay commission to attract more buyers, secure a faster sale, or in soft market conditions. This must be agreed upfront and documented in the Form A listing agreement with the agent.
| Item | Amount (AED) |
|---|---|
| Agreed Sale Price | 2,000,000 |
| Outstanding Mortgage | −900,000 |
| Mortgage Settlement Penalty (1%) | −9,000 |
| NOC Fee (Developer) | −2,000 |
| Agent Commission (0%, buyer pays) | 0 |
| Outstanding Service Charges | −5,000 |
| Net Proceeds to Seller | 1,084,000 |
| Capital Gains (no CGT) | Tax-free |
Original purchase price (3 years ago): AED 1,600,000
Capital Appreciation: AED 400,000 (25% gain, completely tax-free)
Appoint a RERA-licensed broker. Sign Form A (listing agreement) confirming the agreed asking price and commission structure. Only one Form A should be active at a time for exclusivity.
When a buyer is found, both parties sign an MOU (Memorandum of Understanding). The buyer pays a 10% deposit. Allow 30–60 days for the buyer to arrange finance if needed.
Apply to your developer for a No Objection Certificate. Requires payment of any outstanding service charges. NOC confirms the property is clear and ready for transfer.
Both parties attend a DLD trustee office. Seller receives their manager's cheque (sale price minus mortgage payoff) and the buyer receives the new title deed in their name.
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Sellers in Dubai typically pay: NOC fee (AED 500–5,000 depending on developer), outstanding service charges (if any), and mortgage early settlement penalty if breaking a fixed-rate period (up to 3% of outstanding balance). The 4% DLD transfer fee is borne by the buyer. If the seller agrees to pay agent commission, that's an additional 2% + VAT. Many Dubai property sales cost sellers less than 1–2% of the sale price in total fees.
No. The UAE imposes no capital gains tax on property sales for individual investors. Any profit made on the sale of Dubai property, whether AED 100,000 or AED 10 million, is entirely tax-free from a UAE perspective. This is one of the key advantages of Dubai property ownership. Note: if you are a tax resident in another country, you may have CGT obligations in that country. Consult a qualified tax advisor for your specific situation.
An NOC (No Objection Certificate) from the developer confirms that: all service charges are up to date, there are no outstanding dues on the property, and the developer has no objection to the transfer of title. It is required by the DLD before any title transfer can take place. The seller obtains the NOC from their building's developer or community management company, typically paying a fee of AED 500–5,000 plus any outstanding service charge arrears.
The UAE Central Bank caps early mortgage settlement penalties at 3% of the outstanding loan balance or AED 10,000, whichever is lower. For example, with an outstanding balance of AED 800,000, the maximum penalty is AED 10,000 (as 3% = AED 24,000, which is higher than AED 10,000). Always check your specific mortgage agreement for the exact penalty terms, as some banks charge less than the maximum. Settlement penalties may not apply after the initial fixed-rate period ends.