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Insights · AXD Real Estate Dubai

Brokerage Commission Dubai — Who Pays in 2026?

AXD Insights · DACH Buyer Side · May 2026

Who pays the brokerage commission in Dubai?

In a direct off-plan purchase, the developer bears the brokerage commission in full — the buyer pays 0%. In the secondary market, the buyer pays 2% plus 5% VAT (effectively 2.10% gross), and the seller additionally bears 2% to the listing agent. RERA licensing with a Broker Registration Number (BRN) is mandatory.

Who bears the costs — by sales channel

ChannelBuyer paysSeller / Developer pays
Off-plan, direct from developer0%Marketing allocation of the developer
Off-plan via sub-broker0% (buyer)Developer — brokerage receives a split share
Secondary market2% + 5% VAT2% to the listing agent
Resale off-plan (assignment)2% + 5% VAT2% + NOC fee to the developer

Source: RERA Brokerage Code, DLD transaction data 2025/2026, AXD own research.

What the brokerage commission covers

  • Allocation and contract processing with the developer or seller
  • KYC and AML initial review (UAE Financial Intelligence)
  • SPA review (Form 4 off-plan, Form A/B/F secondary)
  • DLD transfer coordination at the Title Deed Transfer
  • NOC procurement from the developer (secondary / assignment)

Not covered: DLD fees, service charge, property management.

Verification of the broker before contract conclusion

  • Check the BRN (Broker Registration Number) on the business card and in the SPA
  • Query the RERA licence in the Dubai REST App or on dubailand.gov.ae
  • Brokerage company licence (Trade License) also registered with DED
  • Have Form A (Listing Agreement) presented in a secondary sale
  • Check the brokerage's VAT registration with the FTA — otherwise no VAT obligation

Sources

  • Dubai Law No. 85 of 2006 — Regulating Real Estate Brokers Register
  • RERA Broker Code of Ethics
  • UAE Federal Tax Authority — VATGRE1 Real Estate Guide
  • DLD transaction data Q1 2026 (public, dubailand.gov.ae)

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Ali Daioub