Property Taxes & Charges in Abu Dhabi in 2025

When people hear “Abu Dhabi property tax,” it often sparks confusion — and for good reason. Unlike many global cities, Abu Dhabi doesn’t charge an annual property tax. Instead, what you’ll pay comes from transaction fees, community charges, and a few one-time administrative costs.

For investors, that’s part of what makes Abu Dhabi so appealing. With no income or capital gains tax, the city offers a real advantage — but that doesn’t mean buying comes without expenses. Knowing what to expect upfront can help you plan your budget wisely and make confident investment decisions.

This guide will walk you through everything you need to know about property taxes and charges in Abu Dhabi for 2025 — clear, simple, and to the point

• Transfer and registration fees
• Who pays property transfer and registration fees?
• Agent commission and VAT implications
• Mortgage-related costs for i property buyers
• Developer NOC and assignment fees
• Utility connection fees and deposits
• Annual service charges and sinking funds
• Renting out the property and the charges related to it
• Other recurring charges 
• Exit fees for selling Abu Dhabi property
• Fees for off-plan versus ready properties
• Key takeaways
• FAQs

Transfer and registration fees

Government charges are a big part of the Abu Dhabi property tax payment. The transfer fee is fixed at 2% of the purchase price. However, for projects incentivised by the government, it may range between 1% and 4%.

Additionally, buyers pay 1,000 AED to get the title deed. This is a standard fee, regardless of the property price. Other administrative fees cost between 540 AED and 1,000 AED. These fees are payable to the Department of Municipalities and Transport (DMT).

There are no official minimum or maximum caps on transfer fees. Certain special developments, backed by government incentives, offer reduced rates, particularly for Emirati nationals and first-time buyers.

Who pays property transfer and registration fees?

Typically, the 2% transfer fee is split equally between the seller and the buyer, who pay 1% each. However, this norm for the division is negotiable and depends on market forces.

In seller-driven conditions, buyers may agree to cover the complete 2%. Conversely, during buyer-favoured markets, sellers may bear a larger share. Besides, the buyer is responsible for the 1,000 AED title deed fee and admin costs.

Fees must be cleared at ownership transfer, usually within 30 days of signing the sale agreement.

Agent commission and VAT implications

In Abu Dhabi, agent commissions are fixed at 2% of the property value. Agencies add a mandatory 5% VAT to this commission, resulting in a total of 2.1%.

Typically, this is a seller’s expense, but the parties can negotiate.

In addition, the commission percentage is 3% for luxury properties costing more than 10 million AED. This happens when agencies cater to off-market or exclusive listings that need extra effort and marketing.

Mortgage-related costs for property buyers

Additional fees apply to mortgage financing. Total costs usually range between 1.5% and 2.5% of the loan amount.

Moreover, banks impose processing fees of up to 1% of the loan amount, plus VAT. Before the loan is approved, a valuation fee of 2,500 AED to 3,000 AED plus VAT for the property must be paid. Mortgage registration fees are 0.1% of the loan amount.

As a buyer, you will need a life insurance policy equal to the loan amount, which adds another 0.3% and 0.5% per year.

Property insurance can cost between 1,500 AED and 3,000 AED per year, while legal fees for drafting a mortgage contract range from 2,000 AED to 5,000 AED.

Additionally, early repayment fees apply if you repay the loan before the maturity term. The fee amounts to 1% of the remaining loan amount. However, the bank usually imposes a cap ranging from 10,000 AED to 25,000 AED.

Developer NOC and assignment fees

An NOC from the original developer is compulsory for all resale properties in Abu Dhabi. The NOCs usually cost between 500 AED and 1,500 AED. However, the NOCs can be as high as 2,500 AED for luxury developments.

NOC issuance usually takes two to five working days. For NOC, you will need:

• Purchase contracts
• Receipts
• Emirates ID
• Clearance letters from developers, ensuring no outstanding dues

Assignment fees are levied for the sale of off-plan units before completion. These range from 1,000 AED to 3,000 AED. Some developers charge 1% to 2% of the original purchase price as an assignment fee, especially for high-demand projects.

Utility connection fees and deposits

Connections for utilities in Abu Dhabi include connection fees and refundable deposits. The Abu Dhabi Distribution Company (ADDC) charges between 1,000 AED and 2,000 AED for electricity and water connections. Depending on estimated consumption, the deposit costs range from 1,000 AED to 2,500 AED.

District cooling in Al Reem Island costs between 500 AED and 2,000 AED for connection. Gas installation fees range between 500 AED and 800 AED for a standard house. Internet installation charges will apply, depending on the provider and plan.

Annual service charges and sinking funds

Annual service charges vary depending on the development type and facilities. You must pay between 107 AED and 269 AED per square metre annually.  Premium projects with extensive amenities such as pools, gyms, and landscaped areas cost more.

In addition, a sinking fund may be charged in some projects. Contributions start from 50 AED to 100 AED per sqm for large-scale upgrades and repairs. Some developers ask for this upfront, while others bill it annually.

Renting out the property and the charges related to it

You should register the tenancy contracts if you lease your property according to the Tawtheeq system. The charges vary from 100 AED to 250 AED, depending on the contract type and tenure. 

Furthermore, tenants are charged a 5% municipality rent tax. As a landlord, you will collect this amount and take charge of registration and compliance. Property management services cost 5-10% of the yearly rental income. However, many agencies provide flat fee packages.

Advertising listings can be billed from 500 AED to 1,500 AED. Besides, tenant verification services cost 200 AED to 500 AED. Legal protections for disputes may cost 2,000 AED to 5,000 AED. 

When you are ready to make the move, explore the best apartments and flats for Rent in Abu Dhabi on Property Finder, where you will definitely find something that matches your budget and style.

Explore the Available Properties for Rent in Abu Dhabi

Other recurring charges

These vary with the development. Waste management charges are usually 300 AED to 600 AED per annum, and parking permits are 500 AED to 1,200 AED per spot.

Facilities such as the gym, swimming pool, and private beach often cost 1,000 AED to 3,000 AED annually. Marina berths, golf courses, and similar attributes are expensive, costing from 2,000 AED to 10,000 AED per annum.

Moreover, gated community associations charge between 2,000 AED and 8,000 AED per annum. The fees cover landscaping, community security, and organised events. 

Exit fees for selling Abu Dhabi property

Selling also includes some expenses that can reduce your net profit. Standard agent charges are 2% + VAT; in total, 2.1% of the selling price. Developers charge from 500 AED to 1,500 AED as NOC fees.

In the case of a mortgaged property, early settlement fees apply. They are 1% of the outstanding balance, and banks cap them. In addition, the government transfer fee is shared again between both parties during the sale process. As a seller, you can expect to pay around 1% of the price.

Moreover, the legal fees for the resale are between 2,000 AED and 5,000 AED. Clearance certificates stating no pending dues will cost an extra 500 AED to 1,000 AED.

Fees for off-plan versus ready properties

Property taxes for off-plan and ready units differ. Off-plan projects involve staged payments over time during construction. Typically, buyers pay 10% to 20%. This is followed by phased instalments paid at construction milestones.

Developers levy a registration fee of 4,000 AED to register units over 500,000 AED. However, the fee is 2,000 AED to register units below 500,000 AED. Additionally, you will pay a handover fee. It costs approximately between 2,000 AED and 5,000 AED. This covers the cost for administrative work and handovers linked to the project.

Ready properties are resales between private parties. Developer registration fees do not apply here. 

Explore the Available Off-plan projects in Abu Dhabi

Key takeaways

There’s no annual property tax in Abu Dhabi. However, the total fees you pay can range between 4% and 8% of the purchase price.

Annual ownership costs can range between 5,000 AED and 15,000 AED, depending on the location and type of property, on an ongoing basis.

FAQs

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