Do I pay VAT on real estate agent commission and property management fees?
Yes. Brokerage commission, property management and service charges are taxable services at 5% VAT when the provider is VAT-registered (registration is mandatory once turnover passes AED 375,000). So even on an otherwise VAT-exempt residential deal, the agent's ~2% commission carries 5% VAT on top - that applies to a RESALE, since on off-plan and direct-from-developer purchases the developer covers our fee, so there is no commission for you and nothing to charge VAT on. Budget for it, and check invoices show a valid TRN. General information, not tax advice.
Rules and eligibility criteria change — confirm the current position with the relevant authority before acting. This is general information, not legal advice.
Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.
