Guide · Real Estate Agents
Agent's commission: who pays what?
The rules for buying and renting in Germany in brief.
Key points
- German commission percentages are generally negotiable
- Special sharing rules apply to consumer purchases of flats and single-family homes
- Residential letting follows the orderer-pays principle
- Check VAT, scope, trigger and due date in writing
When buying
Since December 2020, when consumers buy flats and single-family houses: if both sides hire the agent, the commission is split. If only one side hires the agent, at most half may be passed on – and only after the hiring party has paid.
When renting
For residential property the “orderer pays” principle applies: whoever hires the agent pays – usually the landlord.
Amount
Commission is negotiable and varies by region. For lettings it is capped at two months' net cold rent plus VAT.
When commission becomes payable
A commission claim normally requires a valid brokerage agreement, qualifying introduction or negotiation activity and a resulting main contract. The agreement should identify the service, calculation, VAT treatment, duration and payment trigger. Simply appearing in a transaction does not by itself create a valid claim.
Consumer purchases of homes
Sections 656a to 656d of the German Civil Code apply to flats and single-family homes where the buyer is a consumer. If both parties instruct the agent, their obligations must generally be equal. If only one side instructs the agent and passes part of the cost to the other, the transferred part cannot exceed half and becomes due only after the instructing party has paid and provided proof. Other property types can follow different rules.
Residential letting
For residential tenancies, the person who instructs the agent generally pays. A prospective tenant owes commission only under narrow statutory conditions where the specific property was obtained exclusively because of that tenant's search instruction. Commercial leases are not governed in the same way.
How to compare agreements
Compare more than the percentage. Check exclusivity, duration, termination, post-contract clauses, reimbursable expenses and whether photography, portals, viewings and buyer checks are included. Confirm whether a quoted figure includes German VAT. A local custom is not the same as a statutory fixed rate.
Worked example
Illustrative calculation
At an assumed purchase price of €400,000 and an agreed total commission of 7.14% including VAT, the mathematical total is €28,560. If both parties owe equal amounts, that is €14,280 each. This is an illustration, not a recommended or statutory rate.
Checklist
- Property type and consumer status checked
- Rate and VAT treatment written clearly
- Services and exclusivity understood
- Due date and evidence requirements understood
Common mistakes
- Assuming one nationwide statutory percentage
- Overlooking VAT
- Comparing percentages without comparing services
Frequently asked questions
Is German agent commission fixed by law?
The percentage is generally negotiable. In specified consumer transactions, the law regulates form and allocation.
Is commission always split equally?
No. The special rules cover certain purchases of flats and single-family homes by consumers.
Sources and further reading
Official and specialist sources for checking the current rules. Links last checked on the update date shown above.
General editorial information, not individual legal, tax or financial advice. Rules and programmes can change; verify the current position for your case.