At a glance
- Indicative sales commission for commercial premises ranges from 1.0% to 2.0% of the purchase price.
- Indicative lettings commission ranges from 8% to 15% of the first year's rent.
- Always request an all-inclusive quote: commission, initial listing costs and any withdrawal fees.
What is commission on commercial property?
Commission is the fee you pay the commercial real estate agent on a successful transaction. For sales, it is usually a percentage of the purchase price excluding VAT; for lettings, it is a percentage of the annual rent excluding additional charges. Commission is generally charged on a no-success, no-fee basis: no transaction means no commission, although initial listing costs may still apply.
Indicative ranges in 2026
- Sales commission for commercial premises: 1.0%–2.0% of the purchase price, depending on size and segment.
- Lettings commission: 8%–15% of the first year's rent, sometimes subject to a minimum fee.
- Stricter transparency requirements apply when acting for both tenant and landlord.
- Initial listing and marketing costs: €0–€1,500, depending on photography, drawings and advertising.
- Withdrawal fees: approximately €750–€2,500 if the instruction is terminated early.
Worked example: selling an industrial building for €1.2 million
At 1.5% commission, you pay €18,000 excluding VAT. Larger properties or portfolios often have a tiered rate: a lower percentage above a certain amount. Always ask for the amount both excluding and including VAT, as commercial property commission is generally quoted excluding VAT.
Worked example: letting office space
With an annual rent of €65,000 and 12% commission, you pay €7,800 excluding VAT when the lease is finalised. If the agent acts for both tenant and landlord, this must be clearly agreed in advance; charging commission to both parties without their consent is not permitted.
What can you negotiate?
- Tiered rates: a lower percentage above an agreed transaction value.
- A combined rate for selling and reinvesting through the same agency.
- Waiving initial listing costs in return for an exclusive instruction.
- A fixed fee rather than a percentage for larger, readily marketable properties.
Watch out for VAT
Commercial property commission is usually quoted excluding 21% VAT. Commission of €18,000 excluding VAT therefore comes to €21,780 including VAT. VAT-registered businesses can generally reclaim this VAT; have your accountant confirm this.
Frequently asked questions
Do you pay commission if the property does not sell or let?
No, commission is almost always charged on a no-success, no-fee basis. Initial listing costs and any withdrawal fees may still be payable; agree this in writing beforehand.
Is commercial property commission tax-deductible?
For businesses, commission on business premises is generally a deductible business expense, and the VAT can often be reclaimed. Have your accountant assess this for your specific circumstances.