DUBAI & UAE · FREE TOOL

Real Estate Commission
Calculator Dubai

Calculate exact agent commission fees for any Dubai or UAE property sale. Includes 5% VAT, buyer vs seller scenarios, RERA standard rates, and net proceeds breakdown — in seconds.

Includes VAT

RERA Rates

Dubai & UAE

Free Tool

Property Sale Price (AED)

Commission Rate (%)
VAT on Commission

Who Pays Commission?
Transaction Type

DUBAI COMMISSION RATES · 2026

Standard Commission Rates in the UAE

2%
Standard Sales Commission
Dubai secondary market
5%
Standard Rental Commission
Annual rent — one-time fee
5% VAT
VAT on Commission Fees
UAE Federal Tax Authority
3–6%
Off-Plan Developer Rates
Paid by developer to agent

HOW IT WORKS

How Agent Commission Works in Dubai

Dubai real estate commission is regulated by RERA but the rate itself is market-driven. Here’s how it’s structured and who pays what in each transaction type.

1

Agree Commission Rate

Standard is 2% for sales, 5% for rentals. Must be documented in a RERA Form A (seller) or Form B (buyer) before the transaction.

2

Calculate Base Amount

Commission = Sale Price × Rate. For AED 2,000,000 at 2% = AED 40,000 base commission before VAT.

3

Add 5% UAE VAT

5% VAT is added to the commission amount. AED 40,000 commission + AED 2,000 VAT = AED 42,000 total.

4

Clarify Who Pays

Buyer typically pays on secondary sales. Developer pays on off-plan. Rental commission is paid by tenant or landlord depending on agreement.

COMMISSION GUIDE · UAE

Everything You Need to Know About Agent Fees Dubai

Real estate commission in Dubai is not fixed by law — RERA provides a framework but rates are negotiated between parties. The widely accepted market standard is 2% for sales and 5% for annual rentals, paid on the completed transaction.

All registered real estate agents and agencies in Dubai must have a RERA licence. Commission can only be legally charged by RERA-licensed brokers. You should always verify an agent’s licence through the Dubai REST app or the RERA broker registry.

For off-plan sales, developers pay commission to agents directly (ranging from 3–8% depending on project and sales velocity). Buyers pay nothing to the agent in off-plan transactions — the developer absorbs the full cost.

📝

RERA Form A & Form B

Form A is the listing agreement with the seller. Form B is the buyer representation agreement. Both must be signed before any commission is earned. Commission is only payable upon successful transfer at DLD.

💳

When Is Commission Paid?

Commission is paid at the time of DLD transfer for sales, or at the time of signing the tenancy contract (Ejari registration) for rentals. It should never be paid until the transaction is legally completed.

⚠️

Double Commission Risks

In Dubai, if both buyer and seller have separate agents, each party pays their own agent. Ensure all commission agreements are in writing — verbal agreements are unenforceable at DLD.

UAE COMMISSION REFERENCE

Commission Rates by Transaction Type in the UAE

Transaction Type Standard Rate Who Pays VAT Notes
Residential Sale (Secondary) 2% Buyer +5% Market standard; negotiable
Residential Sale (Off-Plan) 3–6% Developer +5% Paid by developer to agent
Annual Tenancy (Residential) 5% Tenant +5% Based on annual rent value
Annual Tenancy (Commercial) 7.5–10% Tenant +5% First year typically
Luxury / Ultra-Prime Sale 2–4% Buyer / Seller +5% Often split between parties
Plot / Land Sale 2% Buyer +5% Same as residential standard
Short-Term Rental No fixed rate Landlord +5% Property management fees apply
Abu Dhabi Residential Sale 2% Buyer +5% Same as Dubai standard

BUYER & SELLER GUIDE

Commission Considerations for Buyers & Sellers

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For Property Buyers

Budget 2% + VAT on top of your property price for agent commission, plus 4% DLD transfer fee. For a AED 2M property, total buyer costs (excl. mortgage) can reach AED 250,000+. Use our Buyer Cost Calculator for full breakdown.

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For Property Sellers

Commission is typically paid by the buyer in Dubai, but sellers sometimes offer to pay it to attract more buyers or close faster. If you are selling, understand whether your agent holds a valid Form A and is the exclusive or non-exclusive agent for your property.

🔑

For Real Estate Agents

Track your earned commission per transaction using this calculator. Factor in brokerage splits (typically 50–70% to agent) when calculating your take-home per deal. Use our Broker Split Calculator for agent vs agency breakdowns.

🏗️

For Off-Plan Investors

When buying off-plan, you pay zero commission — the developer pays the agent 3–6%. However, some developers bundle commission into pricing. Always compare the AED per sqft price vs secondary market before assuming off-plan is cheaper.

📋

For Landlords

5% rental commission on a AED 120,000 annual rent = AED 6,000 + AED 300 VAT = AED 6,300 per tenancy. If you re-list annually with the same tenant through an agent, you pay this on each renewal unless you negotiate a fixed management fee.

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For Portfolio Investors

Across a portfolio of 10 properties, commission and transaction costs can significantly impact net returns. Always model acquisition costs (DLD 4% + commission 2%) and exit costs (commission 2%) into your ROI calculations from Day 1.

FAQ · DUBAI COMMISSION

Commission Questions Answered

Everything buyers, sellers, landlords, and agents need to know about commission fees in Dubai.

The standard agent commission for residential property sales in Dubai is 2% of the agreed sale price plus 5% UAE VAT. For a AED 2,000,000 property, that is AED 40,000 + AED 2,000 VAT = AED 42,000. For rentals, the standard is 5% of annual rent. These are market standards — not legally mandated fixed rates.

Yes. Commission is negotiable in Dubai and there is no RERA-mandated fixed percentage. However, most reputable brokerages maintain 2% as their standard rate. Accepting a reduced commission can affect service quality and the agent’s motivation to achieve the best price. For luxury properties, some agents operate on 1.5–2% depending on ticket size.

No — as a buyer of off-plan property in Dubai, you do not pay agent commission. The developer pays the agent (typically 3–6% depending on the project) directly from the project margin. However, this cost is often embedded in the pricing model. Always compare off-plan AED/sqft vs secondary market to evaluate true value.

Commission is legally earned and payable upon completion of the transaction — meaning transfer of title at DLD for sales, or signing and Ejari registration for rentals. Agents should not receive commission before the deal completes. The commission is typically paid on the same day as the DLD transfer, either by manager’s cheque or bank transfer.

If a sale falls through before DLD transfer, commission arrangements depend on the MOU (Memorandum of Understanding) terms. Most Dubai MOUs specify that commission is refunded if the deal collapses through no fault of either party. If a party defaults, the defaulting party may forfeit their deposit (10% SPA) and the commission situation should be explicitly addressed in the MOU.

The agent’s take-home depends on their split with their brokerage. Typical agency/agent splits in Dubai range from 50/50 to 70/30 (agent’s favour). On a AED 2M sale with 2% commission (AED 40,000), an agent on a 60% split earns AED 24,000 before tax. Senior agents and team leaders may negotiate 75–80% splits at established Dubai brokerages.

DUBAI REAL ESTATE ADVISORY

Building or Growing a Dubai Real Estate Business?

AgentAdvisor.ae helps Dubai brokerages build CRM systems, streamline commission tracking, manage agent performance, and scale operations. Talk to a specialist with 12+ years in UAE real estate.

DUBAI REAL ESTATE ADVISORY

Building or Growing a Dubai Real Estate Business?

AgentAdvisor.ae helps Dubai brokerages build CRM systems, streamline operations, manage agent performance, and scale. Talk to a specialist with 12+ years in UAE real estate.

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