On a Dubai resale, the agent's commission is usually the single largest cost the seller carries: a 2% fee on the agreed sale price, plus 5% VAT on that fee. On an AED 2,000,000 sale that is about AED 42,000, and it falls due the moment the contract is signed.

What the agent commission actually is

The headline number is 2% of the agreed sale price. That is the secondary-market standard nearly every RERA-licensed brokerage in Dubai works to, but it is worth being precise about its status: the Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department, does not fix the rate by law. It is a market convention, not a tariff, which is why it can be negotiated.

On top of the 2% sits 5% VAT, charged on the commission amount rather than on the property. Brokerage is a taxable service in the UAE, and the standard VAT rate remains 5% for 2026 (Federal Tax Authority). Add the two together and the real cost of the commission is about 2.1% of the sale price.

A worked figure makes it concrete. Sell at AED 2,000,000 and the agent's fee is 2% of that, or AED 40,000, plus 5% VAT on the fee, or AED 2,000, for AED 42,000 in total. There is no separate "sale tax" or capital-gains tax for an individual seller in Dubai; the VAT on the commission is the only tax in the transaction.

Who actually pays the commission when you sell

This is the part the rate alone does not answer, and it is where most sellers get tripped up.

In a standard secondary resale, each side pays its own agent. The buyer pays the agent who represents them 2%, and the seller pays their listing agent (the broker engaged to market and sell the property) 2%. So if you list with an agent, the 2% plus VAT is your cost, owed to your agent, regardless of what the buyer arranges on their side.

That is the textbook case, and the market has two common variations:

• The seller covers both sides. When a unit is slow to move or the market in that band is quiet, a seller may agree to pay the buyer's agent's commission as well, to widen the pool of agents motivated to bring an offer. That is a choice made to sell, not an obligation.
• No listing agent at all. An owner who sells privately, without engaging a broker, pays no listing commission. Selling your own property is legal in Dubai, but it means you take on the marketing, the viewings, the paperwork, and the DLD transfer coordination yourself.

When the commission is due, and the forms that make it owed

The commission is not a handshake; in Dubai it is anchored to a chain of standard RERA forms, and knowing them tells you exactly when the money is owed.

1. 1

   Form A: you list the property

   Form A is the seller-broker agreement: it authorises your chosen agent to market and sell the property, and it is where the commission rate is written down and agreed. The agent signs it digitally and the DLD Trakheesi system (the electronic permit platform brokers use to advertise legally) issues a permit number. No valid Form A, no enforceable commission.

2. 2

   Form F: the sale contract is signed

   Form F is the MOU, the binding sale-and-purchase agreement between you and the buyer, now issued digitally through the Dubai REST app. Signing the MOU is the point at which the commission becomes due. This is the trigger date to plan your cash around.

3. 3

   Form I: two agents split the fee

   Where a buyer's agent and your listing agent are different firms, Form I is the broker-to-broker agreement confirming who introduced the buyer and how the commission is shared. It does not change what you pay; it governs how the agents divide it.

RERA's one firm requirement here is documentation: the commission has to be agreed in writing in the agency agreement before the transaction proceeds. A verbal "2%" is not what makes it owed; the signed Form A is.

What the commission leaves you with

For the seller, the commission comes straight off the top of the proceeds. Here is the listing-agent cost across three common price bands, each as the 2% fee plus 5% VAT:

One distinction is worth drawing clearly, because it is the most common mix-up: the agent commission is not the same as the DLD transfer fee. The transfer fee is 4% of the price plus roughly AED 4,700 to AED 5,500 in administrative charges (Property Finder; no announced increase for 2026), and by convention that one sits with the buyer. So on an AED 2,000,000 deal, your listing commission of about AED 42,000 is your cost, while the 4% transfer fee is the buyer's side of the ledger.

The commission is also only one line in the seller's full cost. Clearing the developer's no-objection certificate (the NOC the developer issues to allow the transfer to register), settling any outstanding service charges through Mollak, and, if there is a loan on the property, the bank's early-settlement and mortgage-discharge steps all come into the net figure too.

The full cost of selling in Dubai

The complete seller's cost picture: NOC, Mollak service-charge clearance, mortgage settlement, and net proceeds.

Is the commission negotiable, and what to put in writing

Because the 2% is a market standard rather than a rate fixed by RERA, it is negotiable. A seller listing a high-value unit, or offering an exclusive listing to a single brokerage, has room to discuss the percentage. The trade-off is simply the level of marketing and agent effort the fee buys, so the question to weigh is the service, not the headline number alone.

Whatever you agree, the discipline is the same: get the exact figure, the VAT treatment, and the conditions written into Form A before any marketing or viewings start. The form is what makes the number enforceable for both you and the agent, and it is the document RERA looks to if a commission dispute ever arises.

dubailand.gov.ae

Dubai Land Department

The official source for RERA broker rules, the Trakheesi permit system, and the standard sale forms.

Do sellers pay commission in Dubai?+

In a standard secondary resale, each side pays its own agent 2% plus 5% VAT, so a seller who engages a listing agent pays that agent 2%. In a slow market a seller may agree to cover the buyer's agent as well, and a seller who lists privately without a broker pays no listing commission at all.

How much is the property transfer fee in Dubai, and is it the same as commission?+

No. The DLD transfer fee is 4% of the price plus about AED 4,700 to AED 5,500 in admin charges, and by convention the buyer pays it. The agent commission is a separate 2% plus 5% VAT, owed to the agent.

Is there tax on selling property in Dubai?+

There is no capital-gains or sale tax for an individual seller in Dubai. The only tax inside the transaction is the 5% VAT charged on the agent's commission.

Can I negotiate the agent commission?+

Yes. RERA does not fix the 2% by law, so it is negotiable. Whatever rate you agree should be written into the Form A listing agreement before marketing begins.

Selling and want the full cost picture before you list? Get the Dubai seller's cost checklist from withlida, a sourced, line-by-line breakdown of every fee between your asking price and your net proceeds.