Real Estate Brokerage Commission Calculator
Quick answer
In Saudi Arabia a real estate broker’s commission is 2.5% of the deal value for a sale, and 2.5% of the first year’s rent only for a lease, unless the parties to the brokerage contract agree otherwise in writing (Article 14 of the Real Estate Brokerage Law). It is paid by the party that contracted the broker, plus 15% VAT if the broker is VAT-registered. Example: an apartment sold for SAR 800,000 → commission SAR 20,000 + VAT SAR 3,000 = SAR 23,000.
Calculator
Result
- Commission
- 20,000.00 SAR
- VAT
- 3,000.00 SAR
- Total
- 23,000.00 SAR
Estimates for guidance only; the governing regulations and official bodies are the final reference.
How it is calculated
- Sale: commission = deal value × 2.5%
- Lease: commission = first year’s rent × 2.5% (even for multi-year leases)
- VAT = commission × 15% (if the broker is VAT-registered)
- Total = commission + VAT
Before you pay
- 2.5% is the default unless another rate is agreed in writing, so the calculator lets you change the rate.
- If the broker contracts with more than one party to the same deal (e.g. seller and buyer), the total taken from them may not exceed the set rate, and it is split equally unless agreed otherwise.
- Only a licensed broker (FAL licence) with a brokerage contract is entitled to a commission.
- The commission is separate from Ejar documentation fees and from the real estate transaction tax.
FAQ
What is the broker commission on a lease in Saudi Arabia?
2.5% of the first year’s rent only, unless agreed otherwise in writing, even for a multi-year lease. Example: annual rent SAR 40,000 → commission SAR 1,000, plus SAR 150 VAT if the broker is VAT-registered.
Who pays the real estate broker’s commission?
The party that signed the brokerage contract with the broker (Article 14 of the Brokerage Law) — seller, buyer, lessor or tenant.
Is VAT charged on the broker’s commission?
Yes, 15% is added if the broker is VAT-registered, because brokerage is a taxable service.
Can a broker take commission from both the seller and the buyer?
Yes, if the broker contracted with both, provided the total does not exceed the set rate (2.5% unless agreed otherwise in writing); it is split equally unless agreed otherwise.
Official sources
Read also
Related questions
- Who pays the Ejar lease documentation fee, the landlord or the tenant?
- Is there VAT on residential rent in Saudi Arabia?
- Who pays the real estate transaction tax, the seller or the buyer?
- Can a real estate office charge commission without a FAL licence?
- How do I calculate the rental yield of my property?
- Do I need a real estate office to document a lease on Ejar?
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