Dubai Agent Commission Calculator
Commission on a sale or a lease, with VAT — and what it looks like split between two agencies.
Commission rates in Dubai are market conventions, not statutory. Sales typically run at 2% and rentals at 5% of annual rent. All agency commission attracts 5% VAT. Everything here is negotiable before you sign the agency agreement.
What you need to know
Dubai commission rates are conventions rather than regulated rates. Sales generally run at 2% of the purchase price and rentals at 5% of the annual rent, but neither is fixed by law and both are negotiable — particularly on higher-value transactions where 2% is a substantial sum.
VAT at 5% applies to the commission itself, not to the property. It is easy to overlook when budgeting: on a AED 5 million sale, 2% commission is AED 100,000 and the VAT adds another AED 5,000.
Where buyer and seller each have their own agency, the commission is usually split between them. That does not change what you pay — it changes who receives it. Worth confirming in writing which arrangement applies before you commit.
Common questions
What is the standard agent commission in Dubai?
2% of the purchase price on sales and 5% of annual rent on lettings, by convention. Neither is fixed by law.
Is VAT charged on agent commission?
Yes, 5% VAT applies to the commission amount.
Can I negotiate agent commission?
Yes. Rates are conventions, not regulated, and there is usually more room on higher-value transactions.
Want these numbers checked against a real property?
Send us the unit you are looking at and we will run the actual figures — service charge for that building, current market rent, and what comparable units transacted at.