Who pays the 4% DLD fee in Dubai?

The Dubai Land Department lists 2% for the seller and 2% for the buyer, but who pays is agreed between the parties, and in many resales the buyer pays the full 4%. Check the sale agreement.

Who pays the 5% RETT in Saudi Arabia?

By law the seller. ZATCA's guideline says the seller stays liable even if the buyer agrees in the contract to bear it. In practice the price is often negotiated with the tax in mind.

Is there VAT on buying a home?

Not on a residential resale in either country. In the UAE, residential resales are exempt and the first sale of a new home within 3 years of completion is zero-rated; commercial property is 5%. In Saudi Arabia, property sales have been exempt from VAT since 4 October 2020 and pay RETT instead. Agent commission carries VAT in both: 5% in the UAE, 15% in Saudi Arabia.

Is the Saudi brokerage commission capped at 2.5%?

Article 14 of the Real Estate Brokerage Law sets the commission on a sale at 2.5% of the transaction amount unless the parties agree otherwise in writing. So 2.5% is the default, not a strict cap. It is paid by whoever signed the brokerage contract.

How much can I borrow for a home?

UAE: up to 80% of the value for an expat buying a first home under AED 5 million (85% for UAE nationals), 60% to 65% for later homes and 50% off-plan. Saudi Arabia: up to 90% for a citizen's first home and 70% for a second home. Banks can lend less.

Can foreigners buy in Riyadh?

Since 22 January 2026, the updated Law of Real Estate Ownership by Non-Saudis lets non-Saudis own property in set zones of Riyadh and Jeddah, through the Saudi Properties portal. The law allows an extra fee of up to 5% on top of the 5% RETT. Check the zone and the fee with REGA before you commit.

Buying property in Dubai vs Riyadh: upfront costs compared

Figures last checked: 9 November 2026

Dubai and Riyadh both charge a transfer cost of a few percent, but the rules are different: Dubai charges a 4% registration fee that buyers usually pay, Saudi Arabia charges a 5% tax that the law puts on the seller. Here is what a buyer really pays on each side, with official sources.

Short answer: on a 1,500,000 home with an agent and an 80% mortgage, a Dubai buyer usually pays about 6.6% in fees (AED 99,220, mostly the 4% DLD fee and 2% + VAT agent). A Riyadh buyer pays the agent's 2.5% + 15% VAT, about 2.9% (SAR 43,125), because the 5% RETT is the seller's by law, unless the contract shifts it to the buyer, which takes the buyer to about 7.9%.

Side by side

	Dubai	Riyadh
Main transfer cost	DLD fee 4% (listed 2% seller + 2% buyer; usually the buyer pays all)	RETT 5% (seller liable by law)
First-home relief	None	Saudi citizens: no tax on the first SAR 1,000,000 with a Ministry certificate
Registration fees	Title deed AED 250 + 20, map AED 250, trustee AED 4,000 + VAT (AED 2,000 under AED 500,000)	No government transfer fee published by the Ministry of Justice
Agent commission	Usually 2% + 5% VAT (market practice, agreed)	2.5% unless agreed otherwise in writing (Brokerage Law Art. 14) + 15% VAT
VAT on the home	Residential resale exempt; new home's first sale zero-rated	Exempt since 4 October 2020 (RETT instead)
Mortgage registration	0.25% of the loan (DLD)	Ask your bank
Maximum loan, first home	Expats 80% (under AED 5m), nationals 85%	Citizens 90%

Dubai: what the buyer pays

The Dubai Land Department's Property Sale Registration service lists the fees: 2% of the sale value from the seller and 2% from the buyer, a AED 250 title deed with AED 10 knowledge and AED 10 innovation fees, the map fee, and the registration trustee ("service partner") fee of AED 4,000 + VAT, or AED 2,000 + VAT below AED 500,000. With a mortgage, DLD charges 0.25% of the loan to register it.

Example: AED 1,500,000 apartment, AED 1,200,000 mortgage, 2% agent.

Item	AED
DLD transfer fee (4%)	60,000
Title deed + knowledge + innovation	270
Map fee	250
Trustee fee + 5% VAT	4,200
Mortgage registration (0.25%)	3,000
Agent 2% + 5% VAT	31,500
Fees total	99,220 (6.61%)
Down payment (20%)	300,000
Cash needed	399,220

Run your own numbers in the Dubai DLD fee calculator. Bank valuation, processing and insurance fees come on top.

Riyadh: what the buyer pays

Saudi Arabia replaced VAT on property sales with the Real Estate Transaction Tax (RETT) of 5%. The current RETT Law (Royal Decree M/84) has been in force since 10 April 2025. ZATCA's detailed RETT guideline (version 6, May 2026) says the tax is 5% of the agreed value, but not less than the fair market value, and must be paid before the sale is notarised. The seller is liable, even if the contract says the buyer will bear it.

Saudi citizens buying their first home can get a Ministry of Municipalities and Housing certificate (through Sakani): the first SAR 1,000,000 of the price is not taxed, and 5% is due only on the rest.

The Real Estate Brokerage Law (Royal Decree M/130 of 1443 AH), Article 14, sets the commission on a sale at "2.5% of the transaction amount … unless the parties to the brokerage contract agree otherwise in writing", paid by the party who signed with the broker. ZATCA's VAT real estate guideline treats agents' services as standard-rated, so 15% VAT is added.

Example: SAR 1,500,000 villa, buyer hires the broker at 2.5%.

Case	RETT	Broker + VAT (buyer)	Buyer pays on top of the price
Seller bears RETT (the legal default)	75,000 (seller)	43,125	43,125 (2.9%)
Contract shifts RETT to the buyer	75,000 (buyer)	43,125	118,125 (7.9%)
Citizen's first home, buyer bears RETT	25,000 (state bears 50,000)	43,125	68,125 (4.5%)

Try other prices in the Saudi RETT calculator. Paying the tax late costs 2% of the unpaid tax for each month, up to 50%.

Down payment and mortgage limits

UAE. The Central Bank's mortgage regulation (Article 3) caps the loan-to-value ratio. Expats: 80% for a first home under AED 5 million, 70% above, 60% for later homes. UAE nationals: 85%, 75% and 65%. Off-plan homes: 50%. So an expat needs at least 20% of the price in cash, plus fees.

Saudi Arabia. SAMA raised the limit to 90% for citizens' first homes in January 2018, so the down payment can be 10%. For a second home the limit is 70%. Your instalment must also fit SAMA's salary limits; see the DBR calculator.

Foreign buyers in Saudi Arabia

The updated Law of Real Estate Ownership by Non-Saudis (Royal Decree M/14 of 1447 AH) came into force on 22 January 2026. According to REGA, non-Saudis can own property "in Riyadh and Jeddah within specific areas" set out in REGA's geographic scope document, and apply through the Saudi Properties portal; Makkah and Madinah are limited to Muslim individuals and Saudi companies. REGA's Q&A says the law sets a total of up to 10% on a sale to a non-Saudi: the 5% RETT plus an extra fee "not exceeding 5%".

Not verified: news reports from July 2026 say the implementing regulations set the extra non-Saudi fee at 2% in Riyadh and Jeddah. We could not open the regulation itself on an official site, so we only state the legal maximum of 5%. Check the fee, and whether your plot is inside the permitted zones, with REGA before you sign.

Checklist before you sign

Agree in writing who pays the transfer cost: the 4% DLD fee in Dubai, the 5% RETT in Saudi Arabia.
Agree the agent's rate and who pays it. Add VAT: 5% in the UAE, 15% in Saudi Arabia.
Get a mortgage pre-approval and check the loan-to-value limit for your status.
Saudi citizens: request the first-home certificate before the sale, not after.
Dubai resales: ask the seller for the developer's no-objection certificate and proof that service charges are paid.
Keep cash for bank fees (valuation, processing, insurance), which neither calculator includes.

This guide is general information, not legal or financial advice. Laws and fees change, so always confirm with the official authority before you act.