Fees, VAT & charges

Is VAT Applicable on Buying Office Rent in Dubai?

Short answer

Yes, Value Added Tax (VAT) is applicable on commercial property rentals, including office space, in Dubai.

The standard VAT rate of 5% is charged on the rent of commercial properties, while residential properties are generally exempt from VAT on rent.

Figures to know

4%
DLD fee for registering a sale, ready or off-plan, of the contract price
Executive Council Resolution No. 30 of 2013 (DLD fees)
2% + 2%
the 4% DLD transfer fee is split equally between seller and buyer unless the contract says otherwise
Executive Council Resolution No. 30 of 2013 (DLD fees)
0.25%
DLD fee for registering a mortgage, of the loan amount
Executive Council Resolution No. 30 of 2013 (DLD fees)
Rate × area
annual service charge: the rate per sq ft approved for the building, times the unit's area; the rate of every project is public in the Mollak index
Dubai Land Department: Service Charge Index (Mollak)

What a purchase costs on top of the price

Enter your figures. Buyer’s side, without agency commission.

DLD transfer fee, 4%AED 80,000
Title deedAED 580
Trustee office, with VATAED 4,200
Mortgage registrationAED 0
Total on top of the priceAED 84,780

Indicative calculation, not an offer. Published figures differ slightly; we give the exact statement after the NOC and the bank letters.

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