Guide for Dubai brokers

Commission splits and co-broking between Dubai agencies

In Dubai the commission is agreed with the client in advance and written into the brokerage contract (Contract A for the seller, Contract B for the buyer). When two agencies work one deal, how they share it is a business agreement between them, so put it in writing before the viewing. A VAT-registered brokerage adds 5% VAT to its own share of the commission.

Start free trialBook a demo

7 days free · No card needed

  • Agreed in advance
  • Split in writing
  • 5% VAT on your share

Updated · Checked with AI tools against the product and official sources · How this page is made

Commission at a glance

Who sets the rate
The brokerage and its client, by agreement and in advance. DLD's FAQ says the prevailing custom applies only if the contract is silent.
Where it is written
In the brokerage contract: Contract A with the seller, Contract B with the buyer.
When it is due
After the sale contract is concluded and registered with DLD, unless the brokerage contract says otherwise (DLD's FAQ).
Split between agencies
No official split. It is a business agreement between the two agencies: put it in writing first.
VAT
5% on the commission a VAT-registered brokerage invoices. Registration is required above AED 375,000 of taxable supplies a year, optional above AED 187,500.
Inside your agency
Your share is split between the company and its agents by your own commission policy.
In Propfusion
The other agency's share comes off before the company–agent split; VAT is added only when your company has a TRN.

What the official sources say

Commission and VAT rules, in plain words

Each point links to the official page it comes from, with the date we last read it.

  • DLD's FAQ says the broker's commission is set by the agreement with the client, citing Law No. 85 of 2006, and that the prevailing custom is used only when the agreement doesn't specify it.

    Frequently asked questions (brokers and brokerage contracts) · Dubai Land Department · checked

  • The same FAQ says a brokerage contract shows the parties, the property, the agreed amount, the commission rate and the property's DLD registration date.

    Frequently asked questions (brokers and brokerage contracts) · Dubai Land Department · checked

  • When several brokers negotiate together for one party and the deal closes, DLD's FAQ says the fee is divided between them as their contract says. If a client hires several brokers separately, the one who completes the deal is entitled to the whole commission.

    Frequently asked questions (brokers and brokerage contracts) · Dubai Land Department · checked

  • DLD's FAQ also says the commission is due once the sale contract is concluded and registered with DLD, unless the brokerage contract says otherwise.

    Frequently asked questions (brokers and brokerage contracts) · Dubai Land Department · checked

  • DLD's practice guide names the brokerage contracts: Contract A between the seller and the brokerage, and Contract B between the buyer and the broker.

    Real Estate Brokerage Practice Guide (2nd edition, November 2024) · Dubai Land Department · checked

  • VAT was introduced in the UAE on 1 January 2018 at 5%. Registration is mandatory when taxable supplies and imports pass AED 375,000 a year, and optional above AED 187,500.

    Value added tax (VAT) · UAE Government portal (u.ae) · checked

Between two agencies

What to agree in writing before the viewing

A short e-mail both managers reply to is better than a handshake. Cover these six points.

  • Each agency's share, as a percentage of the commission before VAT.
  • Who collects the commission from the client, and who invoices whom.
  • When the other agency is paid: on transfer, or when the client's money arrives.
  • Who pays a referral fee, if there is one, and from whose share.
  • What happens if the deal falls through or the client cancels after a payment.
  • Whether each agency is VAT-registered, with its TRN on the invoice.

Inside your agency

From your share to each agent's pay

Your agency's share is split between the company and its agents by your own commission policy. Write each agent's rate down per deal type, so nobody argues about it after the transfer.

When two of your agents co-list a property, decide how they share the agent part before the deal: equal parts by default, or an agreed ratio. Each agent's own rate then applies to their part.

Decide your clawback policy too. If a deal falls through after agents were paid, say whether the money is taken back at once, recovered from the next commission or written off.

One sale, two agencies, two of your agentsExample
Sale price
AED 10,000,000
Commission at 2% (the rate in this example's contract)
AED 200,000
Other agency's share (50%)
AED 100,000
Your agency's share (50%)
AED 100,000
Agent 1: half the share at a 45% rate
AED 22,500
Agent 2: half the share at a 35% rate
AED 17,500
Your company keeps
AED 60,000
5% VAT on your share, if VAT-registered
AED 5,000

The rate, the 50/50 split and the agents' rates are examples, not market norms. Use the figures in your own contracts.

Work out both sides' netYour figures: the total, each agency's share and VAT, your agent's part and what your agency keeps.Open the calculator

How to do it in Propfusion

Splits, VAT and clawback on every deal

Each step uses a feature that is live for clients today.

  1. Record the other agency's share

    On the deal's commission step, enter the outside agency's share. It comes off the commission before your company and agents split the rest.

  2. Add co-listing agents and their parts

    Agents on a co-listed deal share one agent part, 50/50 by default for two agents and editable. Each agent's own rate applies to their part, rounded to the fils.

  3. Pay referrers and POA holders from the deal

    Add a referrer or POA holder as an amount or a percentage of the commission. Their total also comes off before the split, and they are paid once Finance approves the deal.

  4. Finance approves; commission lands in the wallet

    Deals go from draft to Finance's approval. Each agent's commission then lands in their wallet, where they can request a payout.
    Propfusion CRM: Agent wallet with current balance, a Request Payout button and commission and payout transaction history
    Agents see each commission land and request payouts themselves.

  5. Invoice with VAT

    Invoices are made from the approved deal. VAT is 5% of the commission less the outside agency's share, and only when your company is VAT-registered with a TRN.
    Propfusion CRM: Invoices list with outstanding, overdue and paid totals and each invoice's client, dates, amount and status
    Each commission invoice from draft to paid, with what is still outstanding.

  6. If the deal falls through

    Finance marks the deal as fell through. What the agent still holds of it in their wallet is taken back at once; the rest is recovered from their next approved commission, repaid outside the CRM or written off.

FAQ

Questions about commission splits

Who decides the commission rate in Dubai?

The brokerage and its client, by agreement before the work starts. DLD's FAQ says the contract states the commission rate, and that the prevailing custom applies only when the contract says nothing. Your rate is the one in your signed Contract A or B.

How do two agencies usually agree a split?

There is no official split; agree it in writing before you share the client. Write down each agency's share, who collects from the client, when the other agency is paid and what happens if the deal falls through.

Is VAT charged on real estate commission in the UAE?

A VAT-registered brokerage charges 5% VAT on its commission. The UAE government's VAT page says registration is mandatory once taxable supplies pass AED 375,000 a year and optional above AED 187,500.

Does each agency charge VAT on the full commission?

No. Each VAT-registered agency charges VAT on the fee it invoices, which is normally its own share. If one agency collects the whole fee and pays the other, check how to invoice it with your tax adviser.

What if a co-broked deal falls through?

Your written agreement decides, so cover it before the deal: whether any fee is still due, and who repays money already paid. Inside your agency, Propfusion's clawback takes back what is still in the agent's wallet and recovers the rest from their next commission.

Should agents be paid before the client pays?

That is a company policy choice: pay on approval of the deal, or only once the client's money has arrived. Write the rule down so agents know it. In Propfusion, commission lands in the agent's wallet when Finance approves the deal, and payouts are requested and approved separately.

Keep reading

Related pages

All guides

Sources

  1. Frequently asked questions (brokers and brokerage contracts) · Dubai Land Department · checked
  2. Real Estate Brokerage Practice Guide (2nd edition, November 2024) · Dubai Land Department · checked
  3. Value added tax (VAT) · UAE Government portal (u.ae) · checked
  4. Value Added Tax (VAT) · UAE Ministry of Finance · checked
  5. Deals and commissions (release notes, 24 October 2026) · Propfusion · checked

Updated · Checked with AI tools against the product and official sources · How this page is made

Screens on this page show the Propfusion Demo Realty sample workspace. All people, listings and numbers are fictional.