Buyer Guides · 4 min read
How Real Estate Agent Commission Works in Dubai
The EQT Private Office · RERA-registered brokerage · Published August 19, 2026 · Updated September 24, 2026
Real estate commission in Dubai is 2% of the sale price plus 5% VAT, and who pays depends on the type of purchase, resale or off-plan. On a resale, the buyer pays their side's 2% plus VAT; on off-plan, the developer pays the agent, so the buyer often pays no commission. Commission is due on completion, meaning the transfer, and you can negotiate it. Each point is set out below 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 pays 2% plus VAT for their agent; the seller pays their own side.
- •On off-plan the developer 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
The customary agency commission across Dubai's resale market is 2% of the agreed sale price. VAT of 5% applies to the commission itself, because the agency is providing a taxable service. 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.
The 2% is a market convention, not a fixed tariff. It is established enough that a quote far above 2% deserves a question, and one well below it can mean the agent is 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 pays its own agent. The buyer pays 2% plus VAT to the agent representing them, and the seller pays their agent. Most purchasers budget the buyer's commission alongside the DLD transfer fee and other closing costs.
Sometimes one agent introduces both parties, and arrangements then vary. Commission is still a fee for representation and coordination through to transfer, and you should agree the amount and payer 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 through an agent, the developer pays the agent a commission for introducing you. Because the developer covers it, you often pay no agency commission at all.
So a good agent on an off-plan purchase can cost you nothing while still representing you, getting you access to launches and helping you compare payment plans. Confirm the arrangement in writing, because terms vary between developers and projects.
- •On off-plan, the developer 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. Viewings, an offer or a verbal agreement do not trigger it. The agent is paid only when the deal completes, so their incentive matches yours.
You settle commission around the transfer, at the trustee office, with the other closing payments. If an agent asks for their fee before completion, pause and ask why.
- •Commission is due on completion at transfer, not on viewings.
- •It is 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 for the buyer and one for the seller. When they share the total commission, RERA's Form I documents how the two agencies split it, which keeps the arrangement transparent and on the record.
As a client, you owe your own side's commission as agreed. The split between agencies goes through the proper form and is not yours 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
Yes, commission is negotiable. Two per cent is the market norm, not a legal minimum, and on higher-value transactions or when an agent represents you on several deals, there can be room to discuss the rate. Agree it at the start, in writing, not at the transfer table.
VAT applies to the commission as a service, currently at 5%, and never to the property price. A clear quote states the commission percentage and confirms VAT is added on top, so you know the final figure.
- •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 pays 2% plus VAT to their own agent. It is a convention, not a legally fixed rate, so you can negotiate it.
Do I pay commission when buying off-plan in Dubai?+
Usually not. On off-plan purchases the developer pays the agent for introducing the buyer, so you often pay no agency commission at all. Confirm the arrangement in writing, because terms 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 you normally settle it at the trustee office with other closing costs. Viewings and offers do not trigger it, so treat any request to pay before completion with caution.
Is real estate commission in Dubai negotiable?+
Yes. Two per cent is the established market norm, not a legal minimum, and there can be room on the rate, particularly on higher-value or multiple transactions. Agree it 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, keeping the split transparent and on the record. As a client, you owe your agreed side, not the inter-agency arrangement.
