Property Registration Charges in UAE

Purchasing a property is one of the most important milestones of our lives. However, the procedure of acquiring can be quite tricky and lengthy at times. You need to take multiple factors into account when it comes to buying a property. Besides considering the cost of the property and the cost of acquiring a suitable financing solution, you also need to consider the cost of getting it registered. The property registration charges can range from 1% to 5% of the total cost of the property, depending on multiple factors. This piece will cover all fees and charges related to property registration in the UAE.

Property Registration Charges in UAE Emirates

In Dubai and other major emirates of the UAE, the land registration fee is generally 5% of its value. And apart from these charges, you will also need to pay some other additional charges. Given below is a tabular representation of property registration charges in UAE as per emirates.

Emirates	Property Registration Charges
Dubai	For properties valued < AED 500,000:  AED 2000 + 5% VAT For properties valued > AED 500,000: AED 4000 + 5% VAT
Abu Dhabi	1% to 4% of the total property cost
Sharjah	1% to 4% of the total property cost
Ras Al-Khaimah	1% to 4% of the total property cost

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What is Land Registration Fee?

Land registration or apartment registration charges refer to the charges levied by the government to register the property under your name. Property registration fee is charged as a percentage of the total value of the property you want to get registered. In simple terms, this is a fee that you need to pay to get your newly purchased or transferred property registered in your name. Note that the land registration charges vary from emirate to emirate. The charges can also depend on the total value of the property, its purpose, and the owner. Let's discuss some other factors that determine land registration fees in the UAE.

Factors That Determine Land Registration Fees in UAE

Given below is a quick list of factors that can impact land/property registration charges in the UAE:

• Old or New Property: The very first thing that determines the land registration charges is the age of the property. In general, the registration charges for a brand-new property are higher compared to an older property. This is because the registration fee is nothing but a percentage of the total price of the property. Since newer properties are generally priced higher, their registration fee is high as well. Properties depreciate in value over time and hence older ones attract lower registration fees. However, depreciation does not apply to land. Some older properties may appreciate in value with the appreciation of the value of the land they are built on. This can increase the registration fee but only in comparison to the property’s previous registration. 
• Residential or Commercial Property: Another factor that decides the property registration charges is the purpose and type of the property. Note that the registration charges for commercial land/property are significantly higher than that for residential land/property. The reason behind this difference is that commercial properties and land are purchased for business purposes and require many additional amenities like escalators, parking, swimming pool, etc. 
• Location of The Property: Geographical factors also come into play when calculating the registration fee of a property. If your newly purchased property is located in emirates like Dubai and Abu Dhabi, you'll probably have to pay higher registration charges. 
• Transfer Type: In case the property or land is transferred to your name from a non-family member, then you will pay a standard land registration charge. However, the registration fees are lower if it is transferred to you from a family member as a gift. 
• Distance from Airport/Bus/ Train Station: If your land is close to the airport or bus/train station, the registration charges will be higher. 

How to Calculate Property Registration Charges?

First, you need to know about the market value of your property to calculate the property registration charges. You may also have an ‘agreement value’ which may differ from the market value of the property. If you've both the agreement value and market value of your chosen property, the higher one will be charged when calculating the registration fee. Besides the value of the property, other factors we've discussed in the section above may also contribute to the calculation of registration charges for your property.

Land/Apartment Registration Charges Calculator

It is always better to learn about the associated fees before getting started with the registration process. The easiest and most hassle-free way of getting your registration fee is by using an online property registration fee calculator. You can find this useful tool on the internet quite easily. These calculators can provide you with a very close estimate of the charges in seconds.

Below are the steps to get your registration fee using a property registration fee calculator:

• Find a good online property registration fee calculator as per your requirements. 
• Enter all the basic details like the total cost of the property, its location, type, etc. 
• Hit the “Calculate” button and get your results!

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What If You Pay Less Property Registration Charges?

Several people often try to reduce their property's actual value or simply undervalue it to save themselves from the high registration charges. Tricks like this are not legal and the concerned individual may end up paying hefty penalties in addition to serving imprisonment on grounds of conducting fraudulent activities. Instead of succumbing to unlawful tricks, you can follow the smart tips discussed in the next section to save on registration fees for your property.

How to Save On Land Registration Fees?

There are many ways in which you can legally save on property registration charges. Some of these are given below:

• Some emirates offer low registration charges if the property is being registered in the name of a senior citizen or a woman. You can get your land registered in your parent’s or spouse’s name to save on registration fees or to get low-cost mortgage solutions. 
• High-rise buildings with amenities like swimming pools, gyms, clubs, etc. call for higher registration costs. Purchasing a property that has fewer floors and amenities can reduce the registration fee. 
• If you're buying a property solely for investment purposes, then buy it on the outskirts of the emirate. The registration charges in the main areas of the emirates are higher.  
• If you're buying land from a family member, then mention it very clearly at the time of registration. It will help you gain a fair reduction in the registration charges.

And There You Have It!

Property registration charges are an important factor to be considered at the time of getting your property registered in the UAE. We have discussed all the factors that decide your property registration fee along with some very useful tips to save on it. You can get more information on property registration charges, mortgage solutions and other related aspects in our home loan section or by getting in touch with our in-house experts.