Abu Dhabi has no annual property tax, no capital gains tax on sale and no income tax on rent received. That is genuinely unusual, and it is one of the reasons the city draws buyers who might not consider a second property in London or Sydney. It can also lead people to assume that ongoing costs are close to zero, which they are not. As one of the top real estate agencies in Abu Dhabi, betterhomes sees this gap between expectation and reality regularly, so this guide sets out what you will pay at purchase and every year after.
The one-off costs at purchase
Budget roughly 3% to 6% of the purchase price on top of the price itself. The components are fixed and public, and all transactions are registered through the DARI platform under the Abu Dhabi Real Estate Centre (ADREC).
The Abu Dhabi registration fee is 2% of the sale value. It is calculated on the sale price or the registered valuation, whichever is higher. The law splits it equally between buyer and seller, at 1% each, unless the parties agree otherwise, and the sale agreement should state who pays. DARI also charges electronic service fees, and title deed issuance carries a separate charge. On off-plan units, registration is 2% of the sale price plus an AED 400 administrative fee, excluding VAT. Confirm current amounts with DARI or ADREC before signing.
Agency commission is typically 2% of the purchase price plus 5% VAT, capped at AED 500,000 under ADREC rules. Conveyancing, which is optional but sensible on a secondary-market purchase, generally costs AED 5,000 to AED 10,000.
If you are financing the purchase, there are additional costs. Mortgage registration is a percentage of the loan amount, so confirm the current rate with your bank. Bank arrangement fees are commonly 0.5% to 1% of the loan, while valuation typically costs AED 2,500 to AED 3,500, sometimes with VAT. Down payments are set by UAE Central Bank rules. Broadly, expatriate residents buying a first property under AED 5 million put down 20%, and 30% above that. Non-residents put down 35% to 40% or more, depending on the bank.
On an AED 1 million apartment, a cash buyer paying half the registration fee can expect roughly AED 35,000 to AED 45,000 in costs. A mortgage pushes that higher, and none of it counts the deposit. Sellers pay their share of the registration fee, their commission, a developer No Objection Certificate at AED 500 to AED 5,000 plus VAT, and any mortgage settlement charges. For ADREC-registered properties, the NOC must now confirm that all service and community charges have been settled.
Where foreigners can buy
Foreign buyers can own freehold property in Abu Dhabi only within designated investment zones, including Saadiyat Island, Yas Island, Al Reem Island, Al Raha Beach and Ghantoot, where Ora Developers is building its BAYN masterplan. Al Reem Island and Al Maryah Island fall under ADGM's real-property framework, which uses a separate registration process. When you browse property for sale in Abu Dhabi, check which zone and registration route apply to the specific unit before you commit.
Service charges: the number that decides your actual yield
This is the cost most buyers underestimate, and the one that can take a significant share of a headline gross yield.
Jointly owned buildings in Abu Dhabi, including apartment towers, townhouse clusters and mixed-use communities, fall under Law No. 3 of 2015 regulating the real estate sector, as amended. Owners pay an annual service charge covering common-area maintenance, security, cleaning, lifts, pools, insurance and a reserve fund for major future works.
Rates vary by community and building. Standard apartments commonly fall between AED 10 and AED 15 per square foot per year. Premium units on Saadiyat or Yas can reach AED 20 to AED 25. Two apartments of identical size in different communities can therefore differ by thousands of dirhams a year in running costs. That is why comparing price per square foot without also comparing service charges per square foot can be misleading.
Before you buy, ask the developers in uae or the building's management company for the current approved service charge and the latest budget, rather than relying on a launch-stage estimate from a brochure. Off-plan projects often have no approved budget yet. If you believe the charges are unjustified, you can request more information on the budget and raise the matter with ADREC. Owners also remain liable if a tenant fails to pay, and unpaid charges can prevent a property from being transferred.
The housing fee in your ADDC bill
Separately, the Department of Municipalities and Transport levies a housing fee of 3% of the annual rent on expatriate tenants, with a minimum of AED 450 a year. ADDC collects it as a separate line on the monthly utility bill, divided into 12 installments. On a rent of AED 100,000, that is AED 3,000 a year, or AED 250 a month.
Tenants pay based on the rent registered in their Tawtheeq contract, so the fee updates when the registered rental value changes. Unlike in Dubai, owners living in their own property do not pay the fee. UAE nationals are generally exempt.
Landlords should note that the housing fee is paid by the tenant, while the service charge remains the owner's responsibility regardless of who lives in the property. For community-level cost guidance, betterhomes publishes Abu Dhabi area and building information, although figures can date quickly. Always confirm the current service charge for the specific building, and current government fees with DARI or ADREC.
Article sponsored by betterhomes.