Lead generation✓ Updated Mar 2026

Referral Fees Between UAE Agents: What Is Legal

UAE referral fees have specific RERA rules. Structure splits with international agents legally and get paid.

·7 min read·By AgentsAI Editorial
RERA permits referral fees between licensed UAE agents when the agreement is documented and the fee stays below 30% of the total commission earned on the transaction.

RERA Rules on Referral Fees

Only agents holding a valid RERA broker card can receive referral fees. The fee must appear in the brokerage agreement signed with the client before any property viewing. RERA caps the referral share at 30% of the brokerage commission. Anything higher requires a separate tri-party agreement between the two brokerages and the client, filed with the Dubai Land Department (DLD) within 48 hours of signing.

Domestic Split Structure

Most Dubai brokerages use a 70/30 split when one agent supplies the buyer and another lists the property. The referring agent receives 30% of the total 2% commission on a typical AED 2.5 million JLT apartment, which equals AED 15,000. The payment is processed through the brokerage accounts; direct cash transfers between agents violate MOHRE rules and can lead to license suspension.

Working With International Agents

International agents without a UAE license cannot receive referral fees directly. Instead, they must route the introduction through a licensed UAE brokerage that issues a formal referral letter. The UAE brokerage then pays the international partner an agreed amount after the deal closes and funds clear. Common practice for properties in Saadiyat Island or Arabian Ranches is a 25% referral fee paid within 14 days of DLD title deed registration. The UAE brokerage retains 75% and covers all local compliance costs.

Step-by-Step Process to Stay Compliant

  1. Confirm both agents hold active RERA cards on the DLD portal before any discussion of fees.
  2. Include the referral clause in the brokerage agreement at the first client meeting; state the exact percentage or fixed AED amount.
  3. Submit the signed agreement to your brokerage’s compliance officer within the same working day.
  4. After closing, request the DLD transaction report and attach it to the referral invoice.
  5. Receive payment only through the brokerage bank account; never accept personal transfers.

Common Pitfalls and Penalties

Agents who pay or accept referral fees without a written agreement face fines starting at AED 50,000 per transaction plus possible 90-day license suspension. Sharing a Property Finder or Bayut listing link with an unlicensed overseas contact and requesting payment afterward is treated as an illegal referral. Always run the name through the RERA public register first.

Can I pay a 40% referral fee if the client agrees?

No. RERA caps the referral portion at 30% unless a separate tri-party agreement is filed with the DLD. Anything above requires explicit approval from both brokerages and the client.

Do referral fees apply to off-plan units?

Yes. The same 30% cap and documentation rules apply to off-plan sales in JVC or Dubai Marina. The developer’s master agent must also be notified in writing before the referral fee is paid.

Is a referral fee taxable?

Referral income is treated as brokerage income and subject to 9% corporate tax for the receiving brokerage. Individual agents receive the net amount after their brokerage deducts the agreed internal split and any applicable VAT.

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