Dubai Property Agent Commission: What Buyers and Sellers Actually Pay

Somebody tells you agent commission in Dubai is 2%. Somebody else tells you it's free. Both can be true — it just depends what you're buying. Off-plan and resale run on two completely different commission rules, and mixing them up is how buyers either get quietly overcharged or walk away from a legitimate fee thinking they've been scammed.

Here is exactly who pays, how much, and what's actually negotiable — so you know before you sign anything.

Off-plan: you pay zero commission

If you're buying directly from a developer — a new launch, a project still under construction — you don't pay your agent anything. The developer pays the agent, not you.

Developers set aside a marketing budget for every project, and that budget pays the broker who brings them a buyer. This typically runs 2% to 8% of the unit price, depending on the developer, the project, and how competitive that launch is. You never see this money. It doesn't get added to your price. It comes out of the developer's own margin.

This is exactly why a good broker is worth using on an off-plan purchase — they cost you nothing, and they're paid to help you compare projects, not to push the one unit they happen to own. If you've read our piece on why the payment plan is never the real reason to buy, the same logic applies here: don't let "free advice" from the developer's own sales desk replace someone who's actually comparing options for you.

Resale (secondary market): the 2% + VAT rule

Once you're buying a property that already has an owner — a resale, sometimes called the secondary market — the rules flip. Here, both sides typically pay.

The industry standard in Dubai is 2% of the agreed sale price, paid by each side to their own agent, plus 5% VAT on top of that commission. So if you buy a resale apartment for AED 2,000,000, your agent's fee is AED 40,000, plus AED 2,000 VAT — AED 42,000 total. The seller pays the same 2% plus VAT to their own agent, separately. Both agents can be the same person — more on that below.

One thing worth being very clear on, because buyers mix this up constantly: this 2% is not tax and it is not government fee. It's a private payment to a private service provider — your broker. The government's own cut is separate: the Dubai Land Department charges a 4% transfer fee to register the property in your name. That fee is legally split 50/50 between buyer and seller, but in almost every deal today, the buyer ends up paying the full 4% — sellers typically pass their share back to the buyer inside the MOU. Two completely different charges, going to two completely different places. Don't let anyone blur them together on your settlement sheet.

Why does commission carry VAT at all, when property itself mostly doesn't? Because the property sale and the agent's service are taxed differently. Buying real estate in the UAE isn't itself subject to VAT in most residential cases. But your agent isn't selling you a property — they're selling you a professional service. And professional services in the UAE carry 5% VAT, full stop, regardless of what the underlying transaction is. That's why the commission line on your invoice always has VAT added, even when the price of the property itself doesn't.

Is the 2% actually fixed? No.

Here's something almost nobody tells buyers: there is no law in Dubai that sets commission at 2%. RERA (the Real Estate Regulatory Agency, the arm of the Dubai Land Department that governs brokers) regulates who can act as an agent and how they must conduct a transaction. It does not fix what they charge. 2% is custom — what the market has settled on — not a rule you're required to accept. That means it's genuinely negotiable, especially on high-value properties, in a slower market, or with an agent who wants your repeat business.

One scenario worth knowing about: the same agent sometimes represents both the buyer and the seller on one deal — this is legal in Dubai, called dual representation, but the agent has to disclose it and get both sides' written consent. If your agent is also the seller's agent, ask directly what each side is paying. Some agents will reduce their fee on one or both sides in this setup, since they're already earning from the other party. Don't assume you're automatically getting a discount just because one person is running both sides — ask, get it in writing, and don't rely on assumption.

How to check your agent is actually licensed

Every legitimate transaction in Dubai runs through two documents before anything else happens: Form A, the agreement the seller signs with their listing agent, and Form B, the agreement the buyer signs with their agent. Both are RERA-standard forms, and both spell out the exact commission being charged before you're locked into anything. If an agent asks you for money without one of these in place, stop and ask why. A licensed agent will also have a Trakheesi registration — the Dubai Land Department's own tracking system for every licensed broker in the city. Getting that license isn't casual: it requires training through the Dubai Real Estate Institute, a RERA exam, and an active broker card that has to be renewed every year with continuing education. You can — and should — ask any agent for their registration details before you commit to working with them, especially if you found them through a cold DM or a random Instagram ad rather than a referral.

The practical takeaway

Before you sign anything with an agent in Dubai real estate, know these four things:

• Buying off-plan directly from a developer? You pay nothing — the developer pays your agent.
• Buying resale? Budget roughly 2% of the price plus 5% VAT for your own agent's fee — and know the seller is typically paying the same to theirs, separately.
• The DLD's 4% transfer fee is a completely separate government charge, not agent commission — and in practice, buyers usually end up covering all of it.
• The 2% commission figure is custom, not law. It's fair to ask, and it's fair to negotiate — particularly on a larger deal or if one agent is handling both sides.

If you're already thinking about your exit, not just your entry, it's worth reading how commission shows up again on the way out — see our guide on exit planning and the resale process in Dubai. Whether you buy property in Dubai off-plan or on the secondary market, understanding exactly who gets paid — and for what — is one of the simplest ways to walk into a deal with your eyes open.

Disclaimer: This article explains standard Dubai real estate commission practice as of September 2026, based on RERA/DLD public guidance and current market convention — it is not legal, tax, or financial advice. Commission percentages, VAT treatment, and DLD fee splits are set by regulation and market custom that can change, and individual transactions can vary based on what's actually written in your Form A, Form B, and MOU. Always confirm the exact fees, and who is contractually responsible for each one, directly with your licensed agent and conveyancer before signing.

Written by Bharat Khanna, Dubai real estate advisor — follow on Instagram and LinkedIn. Clarity over hype. Discipline over noise. Truth only.