How real estate commission works in the UAE
The 2% everyone quotes is real — but it is not the law, and it is not the whole story. Here is what actually governs your commission.
In the UAE the standard broker commission is about 2% of the sale price, or about 5% of one year's rent — but these are market custom, not fixed by law. RERA does not set the rate, so it is negotiable. What is required: a valid RERA Broker ID and a commission agreed in writing on a RERA-approved form before you act. VAT-registered agents add 5% VAT.
The standard rates — custom, not law
Almost every broker quotes 2% on a sale and 5% of annual rent, and in practice those are the numbers most deals settle around. But it is worth being precise: these are market custom, not statutory rates. RERA does not fix commission by law, which means the figure is negotiable and can legitimately differ deal to deal. Sales commissions are commonly cited in a 2–4% band, and rentals in roughly 5–10% of annual rent, with commercial leasing often 5–8%.
What is actually required
The rate is flexible; the licensing is not. To legally earn a commission in Dubai you need a valid RERA Broker ID, issued through the Dubai Land Department — this is the non-negotiable foundation. And the commission itself should be agreed in writing, on a RERA-approved form, before you render services. Those two things — a valid registration and a written agreement up front — are what the system actually cares about.
Who pays, and VAT
By convention a buyer commonly pays around 2% on a sale, and a tenant around 5% of annual rent — but "who pays" is itself part of what the parties agree, not a fixed rule. And do not forget VAT: an agent registered for VAT adds 5% VAT on top of the commission on the invoice.
Rentals and commercial are their own conversation
The 2% figure is a sales-market shorthand. Residential rentals typically run around 5% of the annual rent (sometimes higher), and commercial leasing is often 5–8% of the annual lease value depending on the size and complexity of the deal. If you work across sale, rent and commercial, treat each as a separate norm rather than stretching one number over all three.
Why "in writing, first" protects you
The single most common way brokers lose a commission is agreeing it verbally and chasing it after the deal moves. Because the rate is not fixed by law, your protection is the written agreement — the RERA-approved form, signed before you start working the deal. Get the number and who pays it down on paper up front, and the flexibility the system allows works in your favour instead of against it.
Common questions
Is 2% a legal commission rate in the UAE?
No — 2% on a sale is market custom, not a rate fixed by law. RERA does not set commission rates, so you and the client are free to agree a different figure, as long as it is agreed in writing.
Can I earn commission without a RERA licence?
No. You need a valid RERA Broker ID issued through the Dubai Land Department. Earning a real estate commission in Dubai without a valid broker registration is not permitted.
Who pays the commission?
By custom a buyer commonly pays around 2% on a sale and a tenant around 5% of annual rent, but who pays and how much is agreed between the parties in writing rather than dictated by a fixed rule.
Is VAT added to the commission?
Yes — a VAT-registered agent adds 5% VAT to the commission invoice.
When should the commission be agreed?
In writing, on a RERA-approved form, before you render services — not after a deal is already in motion. A written agreement up front is what protects your commission.
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