Real estate commission splits in Dubai: 50/50 is convention, not law

There is no rule that says 50/50.

Not between two brokerages on a co-brokered deal, and not between a brokerage and its agent. Bylaw No. 85 of 2006 leaves the fee to agreement between the parties, and where nothing was agreed, to whatever is customary.

So 50/50 is a habit. A good one, because it is simple and nobody argues about it, but a habit. A firm that wants 83/17 with a co-broker, or different agent rates by desk, or a fixed amount rather than a percentage, is free to do that.

The sum that catches people out

Where one commission gets shared between firms, that split usually comes first. Each brokerage then applies its own agent split to whatever it kept.

Which means a 50% agent on a 50% co-brokered deal takes 25% of the gross.

Obvious written down. Less obvious when someone is looking at the original commission figure and doing it in their head.

Why it goes in writing

The law does not care what ratio two firms agree. It does care whether they agreed anything.

If two brokerages work a deal together and have a contract between them, they share it as that contract says. If a seller has instructed several firms independently and one of them closes, that firm is entitled to the fee and the others are not.

The difference between those two situations is whether anything was written down. That is the whole reason to do it.

VAT does not follow the split

This one costs people money.

The 5% attaches to each invoice, not to one notional pot that then gets divided. Two brokerages invoicing AED 10,000 each will each add AED 500. If instead one firm bills the client for the whole fee and the other bills that firm for its share, each invoice carries its own VAT, and the paying firm can usually recover what it was charged.

Internally, the agent's share is calculated on commission excluding VAT. The VAT is tax, not extra commission to divide.

Abu Dhabi is different

Abu Dhabi does fix the number. Sales commission is capped at 2% of the transaction value up to a maximum of AED 500,000. On leasing, where the parties have not agreed otherwise, the broker cannot take more than 5% of annual rent from whoever appointed them, and cannot take commission from landlord and tenant on the same deal.

A firm working both emirates is working under two regimes, and the Dubai habits do not carry over.

Recording it

Commission sits on the deal record rather than in the deal wizard. The wizard sets the deal up and picks which agents are eligible to share it, up to three. The figures go in afterwards, under Commission Details.

That panel takes the gross commission, a VAT toggle, and two sets of numbers: the external share, where you record whether the other party is an agency or an individual, their name and their cut, and each agent's share beside it. Both appear as their own columns on the Deals list.

They are free figures rather than fixed options, so 83/17 is entered exactly like 50/50. The system records what you agreed rather than imposing a house rule, which also means the arithmetic stays yours to check.

For how commission, VAT and the deal paperwork fit together day to day, see our guide to commission tracking for Dubai brokerages.

Frequently asked questions

Is there a standard commission split in Dubai?

No. Article 27 of Bylaw No. 85 of 2006 provides that the broker's fee is determined by agreement between the parties, and where no amount has been agreed, by prevailing customary practice. Fifty-fifty is convention, not law.

Is a 2% sales commission required in Dubai?

No. Dubai does not prescribe a rate. The 2% figure is market convention.

Can two brokerages legally share a commission?

Yes. Article 31 provides that where brokers participate together in a transaction that completes, they share the fee, distributed according to the contract between them.

What happens if a seller appoints several brokers separately and one closes the deal?

Article 32 provides that where a party appoints several brokers separately for the same assignment and one succeeds, that broker alone is entitled to the fee. This is the open listing position and it is distinct from brokers working together under Article 31.

Does the brokerage agreement have to be in writing?

Yes. Article 26 requires the brokerage agreement to be in writing, identifying the parties and the property and setting out the brokerage terms.

Are co-brokers liable for each other's work?

Article 24 provides that where several brokers are engaged under one contract, they are jointly liable for the work assigned to them unless they are authorised to act separately.

Which form covers a co-brokerage split?

Form I is the RERA agent-to-agent agreement historically used for this. Its current status is less settled than it once was, since DLD's 2024 brokerage practice guide lists only Form A, B and F as current smart contracts. Our guide to the RERA forms sets out where each one stands.

How does VAT work on a shared commission?

Each VAT-registered business accounts for 5% VAT on the service it supplies and invoices. Two brokerages invoicing separately each add VAT to their own invoice. An agent's internal share is normally calculated on commission excluding VAT.

Is commission capped in the UAE?

In Abu Dhabi, yes. Administrative Decision No. 183 of 2017 caps brokerage commission on sale and purchase contracts at 2% of transaction value, to a maximum of AED 500,000, and limits leasing commission to 5% of annual rent from the appointing party where nothing else is agreed. It also prohibits taking commission from both landlord and tenant. Dubai has no equivalent cap.

Can a split be something other than an even percentage?

Yes. Any ratio or fixed amount the parties agree can be recorded against the deal.

General information, not legal or tax advice, and current as at September 2026. Confirm current requirements with DLD and the Federal Tax Authority before acting.