Buyer Guides · 8 min read
How Real Estate Agent Commission Works in Dubai
The EQT Private Office · RERA-registered brokerage · Published August 19, 2026
Real estate commission in Dubai is more predictable than many buyers expect. The market norm is 2% of the sale price plus 5% VAT, and who pays it depends on whether you are buying a resale or off-plan. On a resale the buyer usually pays their side's 2% plus VAT; on off-plan the developer typically pays the agent, so a buyer often pays no commission. It is due on completion, meaning the transfer, and it can be negotiated. This guide explains each of those points so you can budget accurately and avoid surprises at the trustee office.
Key takeaways
- •The standard commission is 2% of the price plus 5% VAT, the established market norm.
- •On a resale the buyer typically pays 2% plus VAT for their agent; the seller pays their own side.
- •On off-plan the developer usually pays the agent, so the buyer often pays no commission.
- •Commission is earned on successful completion at transfer, not on viewings or offers.
- •Commission is negotiable, and where two agents are involved they split via RERA Form I.
The 2% plus VAT norm
Across Dubai's resale market, the customary agency commission is 2% of the agreed sale price. On top of that, VAT of 5% applies to the commission itself, because the agency is providing a taxable service. So on a property at AED 5,000,000, a 2% commission is AED 100,000, and 5% VAT adds AED 5,000, for AED 105,000 in total.
This is a market convention rather than a fixed tariff, but it is well established enough that quotes far above 2% deserve a question, and quotes well below it sometimes signal an agent cutting corners elsewhere.
- •Commission base: 2% of the sale price.
- •VAT: 5% applied to the commission, not to the property price.
- •Example: AED 5,000,000 price gives AED 100,000 commission plus AED 5,000 VAT.
Who pays on a resale
On a standard resale, each side generally pays their own agent. The buyer pays 2% plus VAT to the agent representing them, and the seller pays their agent on the other side. In practice the buyer's commission is the figure most purchasers budget for alongside the DLD transfer fee and other closing costs.
Sometimes one agent introduces both parties. Arrangements vary, but the principle holds: commission is a fee for professional representation and coordination through to transfer, and the amount and payer should be agreed in writing before you proceed.
- •Buyer pays their agent 2% plus VAT on a resale.
- •Seller pays their own agent on their side.
- •Confirm the amount and who pays it in writing before signing Form F.
Why off-plan is usually different
When you buy off-plan directly through an agent, the developer typically pays the agent a commission for introducing the buyer. Because the developer covers it, the buyer often pays no agency commission at all on an off-plan purchase.
This is one reason working with a good agent on off-plan can be genuinely cost-free to the buyer while still providing representation, access to launches and help navigating payment plans. Always confirm the arrangement in writing, because terms can vary between developers and projects.
- •On off-plan, the developer usually pays the agent.
- •The buyer often pays zero commission on off-plan.
- •Confirm the fee arrangement in writing, as developer terms vary.
When commission becomes due
Commission is earned on successful completion, which in Dubai means the transfer of ownership at the DLD. It is not due for conducting viewings, making an offer, or reaching a verbal agreement. This protects you: an agent is paid when the deal actually completes, which aligns their incentives with yours.
In practice, commission is settled around the transfer, at the trustee office, alongside the other closing payments. If an agent asks for their fee before completion, that is a reason to pause and ask why.
- •Commission is due on completion at transfer, not on viewings.
- •It is typically settled at the trustee office alongside closing costs.
- •Requests to pay commission before completion warrant caution.
Two agents and RERA Form I
Many deals involve two agents, one representing the buyer and one the seller. Where the total commission is shared between them, RERA provides Form I to document how the two agencies split the fee. This keeps the arrangement transparent and on the record rather than settled informally.
For you as a client, the practical takeaway is simple: your commitment is to your own side's commission as agreed, and the split between agencies is handled through the proper form rather than being your concern to negotiate.
- •Form I records how two agencies split a shared commission.
- •It keeps the split transparent and on the RERA record.
- •Your obligation is your agreed side, not the inter-agency split.
Is commission negotiable, and how VAT is treated
Commission is negotiable. Two per cent is the market norm rather than a legal minimum, and on higher-value transactions or where an agent is representing you on multiple deals, there can be room to discuss the rate. The right time to agree it is at the start, in writing, not at the transfer table.
On VAT, remember it applies to the commission as a service, currently at 5%, and not to the property price itself. A clear quote states the commission percentage and confirms that VAT is added on top, so there is no ambiguity about the final figure you will pay.
- •Two per cent is a convention, not a fixed rate; you can negotiate.
- •Agree the rate in writing at the outset of the engagement.
- •VAT at 5% applies to the commission, never to the property price.
Frequently asked
What is the standard real estate commission in Dubai?+
The market norm is 2% of the sale price plus 5% VAT on that commission. On a resale the buyer typically pays 2% plus VAT to their own agent. It is a convention rather than a legal fixed rate, so it can be negotiated.
Do I pay commission when buying off-plan in Dubai?+
Usually not. On off-plan purchases the developer typically pays the agent for introducing the buyer, so the buyer often pays no agency commission at all. Always confirm the arrangement in writing, because terms can differ between developers and projects.
When do I have to pay the agent's commission?+
Commission is due on successful completion, meaning the transfer of ownership at the DLD, and it is normally settled at the trustee office alongside other closing costs. It is not payable for viewings or offers, so requests to pay before completion warrant caution.
Is real estate commission in Dubai negotiable?+
Yes. Two per cent is the established market norm rather than a legal minimum, and there can be room to discuss the rate, particularly on higher-value or multiple transactions. The time to agree it is at the start of the engagement, in writing.
How is commission split when two agents are involved?+
When a buyer's agent and a seller's agent share a single commission, RERA Form I documents how the two agencies divide it. This keeps the split transparent and on the record. As a client, your obligation is your agreed side, not the inter-agency arrangement.
