- Commission (before VAT)
- AED 100,000
- VAT at 5%
- AED 5,000
- Brokerage invoice to the developer
- AED 105,000
- Agent’s share
- AED 50,000
- Brokerage keeps
- AED 50,000
How the calculation works
- Commission: sale price × commission rate.
- VAT: commission × 5%, if the brokerage is VAT-registered. The UAE standard rate is 5%, and brokerage services connected to UAE property are not zero-rated, so registered brokerages charge it on their invoice.
- Brokerage invoice: commission + VAT. This is what the brokerage bills the developer.
- Agent’s share: commission × the agent’s split in their contract with the brokerage. The brokerage keeps the rest.
Worked example
An AED 2,000,000 off-plan unit at a 5% commission rate, sold by an agent on a 50% split at a VAT-registered brokerage:
| Commission (2,000,000 × 5%) | AED 100,000 |
| VAT (100,000 × 5%) | AED 5,000 |
| Brokerage invoice to the developer | AED 105,000 |
| Agent’s share (100,000 × 50%) | AED 50,000 |
| Brokerage keeps | AED 50,000 |
The 5% rate here is only an example. Off-plan rates vary by developer, project and brokerage, and launch incentives change them.
When is off-plan commission paid?
Commission is due when the brokerage agreement says it is. RERA’s practice guide expects the commission to be written into the brokerage contract. Off-plan developers usually pay once the buyer has paid a set part of the price and the sale is registered, but the trigger is the developer’s, so check its terms before you quote a client or plan your month.
Frequently asked questions
Is there a standard broker commission rate in Dubai?
No official one. RERA does not publish a fixed rate; commission is whatever the brokerage contract states. Off-plan rates are set by each developer, per project and often per brokerage.
Do I add VAT to my commission?
If your brokerage is VAT-registered, yes: it charges 5% VAT on its commission invoice. The calculator adds it when the VAT box is ticked. Confirm your own position with a tax adviser.
Is VAT taken out of the agent’s share?
Normally no. VAT is charged on top of the commission and passed to the tax authority by the brokerage, so the agent’s split is calculated on the commission before VAT. Your contract decides.
Does Nogbase pay my commission?
No. Nogbase records the developer’s commission terms for your brokerage and tracks what is due from reservation to payout, but payments stay between the developer and the brokerage.
Sources
Talk to us for pricing
Developer plans are scoped to your projects and launch services, so we price them on a short call. The broker app is free.