OnlineCalculatorStandard UAE commission rates
In Dubai residential property, agency commission is conventionally 2% of the sale price, paid by the buyer, with a common minimum. On rentals, 5% of the annual rent is typical. These are market conventions rather than regulated rates, and they are negotiable.
If a co-broker is involved, the 2% is usually split evenly between the listing and buying agencies, and each agency then splits its half with the individual agent. The agent’s actual take on a AED 1.5 million sale can be a quarter of the headline commission.
Tiered structures
Many sales roles use accelerating tiers: a base rate up to a quota, then a higher rate above it. To model a tiered plan here, calculate each band separately and add the results, in the same way a progressive tax is computed.
VAT on commission
Commission for services rendered in the UAE is generally a standard-rated supply subject to 5% VAT if the agency is VAT-registered. Confirm whether a quoted commission figure is inclusive or exclusive of VAT before agreeing it.