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
| Channel | Buyer pays | Seller / Developer pays |
|---|---|---|
| Off-plan, direct from developer | 0% | Marketing allocation of the developer |
| Off-plan via sub-broker | 0% (buyer) | Developer — brokerage receives a split share |
| Secondary market | 2% + 5% VAT | 2% to the listing agent |
| Resale off-plan (assignment) | 2% + 5% VAT | 2% + 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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