Short answer: a real estate brokerage in Dubai needs an accountant who can handle VAT on commission, agent splits and referral payouts, client money kept out of revenue, and Corporate Tax on commission income. Commission is a service you supply, so it is generally taxable for VAT even when the property sale behind it is treated differently. We charge one fixed price, set in advance by your monthly transaction volume, with Zero Penalty Assurance, in writing.
What do accountants for real estate brokers in Dubai do?
Brokerage books look simple until the first audit question. Money comes in from developers, landlords and buyers, goes out to agents and partners, and sometimes passes through your account without being yours at all. A good accountant keeps those flows apart so your VAT return and your Corporate Tax return reflect only your own income.
VAT on commissions
Your commission is payment for a brokerage service. Under Federal Decree-Law No. 8 of 2017 on VAT, that service is taxable at the standard rate when you are VAT-registered, and the treatment of the commission follows the service you supply, rather than the treatment of the property underneath. A residential or commercial sale may be handled differently for VAT, but your invoice for brokerage is still your own supply. Issue a proper tax invoice for every commission, and if a developer pays you, make sure the invoice matches the contract. Where invoices are wrong, see fixing mischarged VAT on client recharges.
Agent splits and referral payouts
When you pay an agent or an outside referrer a share of a commission, you need paperwork for it. Salaried agents and freelance agents are treated differently, and an outside referrer who is VAT-registered should send you a tax invoice. Record each split against the deal it came from so the commission income and the payout match line by line.
Advertising recharges
Property-site listings, social ads and photography are often paid by the brokerage and then recharged to the owner or developer. Decide in advance whether you are acting as an agent passing a cost through or as a principal selling a service, because the VAT and the records differ. Document the arrangement in writing.
Escrow and client money
Deposits, security cheques and escrow transfers belong to the client or the developer until the deal completes. Hold them in a separate account where the arrangement requires it, and show them as a liability rather than revenue. Only your commission is income. Mixing the two makes a brokerage look bigger on paper than it is.
Want your brokerage books checked before the next return? WhatsApp us on +971 54 1721 823.
What the FTA expects from a real estate broker business
- VAT treatment: tax invoices for each commission, VAT returns filed for the tax period the FTA assigns you, and a clear split between your own supplies and client money.
- Record-keeping: signed brokerage agreements, deal sheets, invoices, agent contracts and bank statements, kept so the FTA can trace each commission from deal to return.
- RERA-linked files: keep the documents tied to your RERA-linked broker obligations, such as agreements and transaction records, with your accounting file so one set of papers answers both sets of questions.
- Corporate Tax: commission income is business income. Profit up to AED 375,000 is taxed at 0% under Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 116 of 2023, and a brokerage with revenue of AED 3 million or less may elect Small Business Relief under Ministerial Decision No. 73 of 2023, on the return, for periods ending on or before 31 December 2026.
- Volume: count your monthly transactions (commission invoices, agent payouts, recharges and bank entries). That count sets your fixed monthly price with us.
If you hold investment or rental property in your own name, that income has its own rules. See personal investment income and Corporate Tax and non-resident rental income.
What this costs
| Brokerage profile | Monthly volume | Package |
|---|---|---|
| Small or growing office | 150 to 180 transactions a month | Fixed monthly price, quoted by volume: books, VAT and Corporate Tax |
| Busier office | 250 to 300 transactions a month | Fixed monthly price, quoted by volume: books, VAT and Corporate Tax |
| Low volume, owner-led | Fewer transactions | Fixed yearly price, quoted on request |
The price is agreed in advance and set by the number of transactions you post each month, never by the hours we spend. Owners who run a brokerage and a property-holding company can have both quoted together. A fixed fee means no hourly meter running.
Zero Penalty Assurance, in writing: where your data reaches us by the agreed cut-off dates, we assure that no FTA penalty will arise from late or incorrect filing, and if a penalty arises from a mistake in our submission, we bear it.
Why owners in real estate pick a fixed-price firm
Commission income is lumpy. A quiet month followed by three completions would make an hourly bill unpredictable, and owners want to know the accounting cost before they set agent splits. A fixed price lets you plan around it. You also get a CA-led team, automatic reminders before every cut-off, and a written assurance on penalties. Our cut-offs are simple: monthly data by the 5th of the next month and VAT data by the 15th after the VAT period closes. Send us your documents online or by WhatsApp. Tally is our in-house system, and we work with Zoho, Odoo, Xero and QuickBooks as well. We have served 572+ UAE businesses over 18+ years, and the work is FTA-compliant filing on time.
Ready for a fixed monthly price? WhatsApp us on +971 54 1721 823.
Frequently asked questions
Do real estate brokers charge VAT on commission in Dubai?
Commission is payment for a brokerage service, so it is generally taxable when you are VAT-registered (Federal Decree-Law No. 8 of 2017), even if the underlying property sale is treated differently. Confirm your specific case with a CA.
Is client escrow money my revenue?
No. Deposits and escrow funds belong to the client or developer until completion. Only your commission is income.
How should a brokerage record agent commission splits?
Record each split against the deal it came from, with the agent contract and, for VAT-registered referrers, a tax invoice.
Does a real estate brokerage pay Corporate Tax?
Yes, on commission income. The first AED 375,000 of profit is taxed at 0% (Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 116 of 2023), and Small Business Relief may be elected on the return where revenue is AED 3 million or less (Ministerial Decision No. 73 of 2023).
How much do accountants for real estate brokers cost?
One fixed price, agreed in advance and set by your monthly transaction volume, with Zero Penalty Assurance in writing. Send us your approximate monthly transaction count and we reply with the price.
Related reading
- Manufacturing Accountants in Dubai: VAT, Corporate Tax, Fixed Fees
- Automotive Accountants in Dubai: Garages, Dealers and Parts Traders
- Accounting Firms in Dubai: How They Price and What You Should Pay
- Zero Penalty Assurance: How It Works, Cut-Offs, Who Pays
- FTA Approved Accounting Software in the UAE: What It Means
