Agent commission is the fee paid to a real estate broker for their services in a sale or rental. In Dubai it is commonly around 2% of the price on a sale and a percentage of the annual rent on a letting, though the exact figure is agreed between the parties.
Where you’ll see it
You’ll see agent commission set out in the brokerage arrangement and paid on completion of a deal. The agreement should state the rate, which party pays, and when it falls due usually on a successful transaction.
Why it matters
Commission is a real transaction cost, and clarity on who pays and how much avoids disputes at completion. VAT may also apply to the commission, adding to the total, so it should be factored into the overall budget.
What it is not
Agent commission is not a government fee like the DLD transfer charge, it is the broker’s professional fee. It is also not fixed by law at a single rate; market norms exist, but the figure is agreed.
Example
On a resale, the buyer pays the agreed agency commission (commonly around 2% of the price) plus VAT, separate from the DLD and trustee fees.
Connected documents and parties
Brokerage agreement, invoice; buyer/seller, broker.
Going deeper: related reading: listing agreement and VAT on property services.
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Last reviewed: June 2026