Calculate how commission is split between brokerage and agent for any Dubai real estate transaction. Model any split ratio, dual-agency deals, VAT, and rental commissions, so agents and managers know exactly what each deal is worth.
In Dubai real estate, every commission earned by an agent is shared with their brokerage according to an agreed ratio. This split is defined in the agent's contract or independent contractor agreement, it must be understood before accepting any position.
New agents typically start on 50/50, the agency retains half of gross commission. As performance and volume grow, agents negotiate better splits. Top producers at major Dubai brokerages can achieve 75–85% splits after demonstrating consistent deal flow.
A critical point: VAT (5%) is NOT part of the split calculation. VAT is collected from the client and remitted to the UAE Federal Tax Authority. Only the base commission (before VAT) is divided between agent and agency.
Some Dubai brokerages offer a "desk fee" or "100% commission" model where agents pay a fixed monthly fee (AED 2,000–5,000) and keep 100% of commission earned. This works well for high-volume agents who don't need brokerage leads or marketing support.
| Deal Value | 2% Comm. | 50% Split | 60% Split | 70% Split |
|---|---|---|---|---|
| AED 800K | AED 16,000 | AED 8,000 | AED 9,600 | AED 11,200 |
| AED 1.2M | AED 24,000 | AED 12,000 | AED 14,400 | AED 16,800 |
| AED 2M | AED 40,000 | AED 20,000 | AED 24,000 | AED 28,000 |
| AED 3.5M | AED 70,000 | AED 35,000 | AED 42,000 | AED 49,000 |
| AED 5M | AED 100,000 | AED 50,000 | AED 60,000 | AED 70,000 |
*Figures show agent's share of base commission (excl. VAT). VAT is a pass-through collected from client.
One agency represents the transaction. Full 2% commission goes to one brokerage. Agency then splits with their listing/selling agent per contract. Most profitable per deal for the agent's agency.
Two agencies involved, one for buyer, one for seller. 2% split 50/50 between agencies (1% each). Each agency then splits their 1% with their respective agent internally.
Two agents within the same agency close a deal together, one had the listing, one brought the buyer. Agency typically splits the commission between both agents (e.g., 60/40 listing/buying split).
Agent refers client to another agent and receives 25–35% of the referring agent's commission share. Common when an agent can't service a particular area, property type, or is capacity-constrained.
Developer pays agent commission (3–6% of sale price) directly. Buyer pays 0% commission. Agent receives their split from the developer commission. Often higher base commission but split with agency still applies.
Standard rental commission is 5% of annual rent. If both tenant and landlord have separate agents, it may be split 50/50 (2.5% each). Agent's portion is then split with their brokerage per contract.
Total agent commission with VAT for buyers and sellers.
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Dubai commission splits typically range from 50/50 for new agents to 80/20 for senior top producers. Most established Dubai brokerages offer: Year 1, 50% to agent. After 12 months strong performance, 60%. Senior/proven agents, 70%. Team leaders and top producers, 75–80%. Some brokerages offer tiered splits based on annual volume, e.g., 60% up to AED 30M in sales, 70% from AED 30–60M, 75% above AED 60M.
Co-broking occurs when buyer and seller have separate agents from different agencies. The 2% total commission is split between the two agencies, typically 50/50 (1% each). Each agency then pays their own agent per their internal split agreement. For example: Agency A earns 1% (AED 20,000 on a AED 2M deal), and pays their agent 60% = AED 12,000. Agency B earns 1% (AED 20,000) and pays their agent 60% = AED 12,000. Each agent earns AED 12,000 vs AED 24,000 in a single-agency deal.
No. VAT (5%) is NOT included in the split calculation. The 5% VAT on commission is collected from the client by the brokerage and remitted to the UAE Federal Tax Authority. The split is calculated on the base commission only (before VAT). Example: 2% commission on AED 1M = AED 20,000 base + AED 1,000 VAT. Agent on 60% split receives 60% of AED 20,000 = AED 12,000. The AED 1,000 VAT goes entirely to the FTA via the brokerage.
Yes, through the "desk fee" or "100% commission" model. Some Dubai brokerages (particularly those catering to experienced, high-volume agents) charge a flat monthly desk fee (typically AED 2,000–5,000/month) in exchange for letting the agent keep 100% of their earned commission. This model works best for agents with their own established client base and lead flow who don't depend on brokerage-provided leads or marketing infrastructure.