Courtage real estate agent (Lexikon): Costs for the real estate agent

The real estate agent commission has been legally revised in Germany since December 23, 2020 — and exactly that makes it an often underestimated factor in real estate investments. When purchasing a condominium for 500,000 €, the commission in many federal states represents an additional burden of 17,850 € gross, which directly reduces the capital investment and only amortizes over several years of renting out. Anyone acting as a buyer or seller must understand the buyer’s principle under § 656a–656d BGB, know the regional maximum rates, and be aware of the negotiation leeway. This guide provides figures, scenarios, and a clear decision matrix.

Real Estate Agent Commission: What the Fee Legally Includes

The commission — used synonymously with real estate agent’s fee or real estate agent’s wage — is the success fee of the real estate agent for the mediation of a purchase, rental, or lease agreement. It is due exclusively if the agent’s involvement is proven: If the contract is concluded without the agent’s participation, there is no claim. The legal basis is § 652 BGB, supplemented by the special rules for residential properties that have been in effect since the end of 2020. The following overview summarizes the essential legal characteristics that buyers and sellers need to know.

• Success fee — due only upon effective contract conclusion
• Basis for calculation — gross purchase price or net cold rent
• Value added tax — 19 % on the net commission
• Client principle — applies since 2015 for rentals
• Split 50/50 — mandatory for residential property purchases since 2020
• Written form — the real estate agent contract must be in written form

What is the actual commission in 2025? Regional rates in comparison

Unlike the land transfer tax, the commission is not legally fixed in amount — it is negotiable, but has settled on market-standard rates regionally. In Berlin, Brandenburg, Hamburg, Hessen, and Bremen, the usual total rate is 7.14 % including VAT, in Bavaria, Baden-Württemberg, and North Rhine-Westphalia it is 7.14 %, and in Mecklenburg-Vorpommern it is sometimes as low as 4.76 %. Since 2020, the buyer pays a maximum of half — if the seller has commissioned the real estate agent.

Buyer’s principle when purchasing: § 656a–656d BGB in plain language

With the “Law on the Distribution of Real Estate Agent Fees” (effective since December 23, 2020), when buying single-family homes and condominiums: the buyer may pay a maximum share equal to the one the seller bears. If the seller agrees with the real estate agent on 3.57%, the buyer may also pay 3.57% — not a single cent more. This rule does not apply to multi-family homes, commercial properties, and land — here, the commission is freely negotiable.

Important: The buyer must pay only after the seller has demonstrably settled their share (§ 656c para. 2 BGB). In case of violation, the buyer’s claim is invalid — a frequently overlooked lever in negotiations.

Calculation example: Commission on a purchase price of 500,000 €

Who buys a rented condominium in Berlin for 500,000 € should calculate the commission exactly into his purchase additional costs. It is, besides the land transfer tax and notary costs calculation, the largest single item of the acquisition additional costs and directly influences the purchase price factor calculation.

With an annual net cold rent of 18,000 €, the gross return calculation is 3.6 % on the purchase price — but only 3.24 % based on the total investment. Thus, the commission reduces the return by about 11 basis points.

Tax treatment: Commission as acquisition ancillary costs

For investors, the tax classification is crucial. According to § 255 Abs. 1 HGB, the commission belongs to the acquisition ancillary costs and is allocated to the building portion. It is not immediately deductible as advertising expenses, but increases the basis for depreciation. For an apartment built in 1985 with 80 % building portion and 2 % linear depreciation, this means: 17,850 € × 80 % = 14,280 € go into the depreciation — 285.60 € are claimed as tax deductions annually.

• Rental — commission increases depreciation basis, § 7 Abs. 4 EStG
• Own use — no tax deductibility
• Sale within speculation period — reduces taxable profit
• Seller’s commission — advertising expenses if rental intention

As described in the guide on real estate capital gains tax, the commission paid at the time of purchase can be deducted from the disposal gain if the property is sold within a 10-year period — a frequently overlooked tax lever that can save five-figure amounts on high investments.

Commission when renting out: Maximum of 2 monthly rents

Since 2015, the strict principle of the person who orders pays applies to rental agreements under § 2 WoVermRG: whoever commissions the real estate agent pays. In practice, this is almost always the landlord. The maximum limit is 2 net cold rents plus 19 % VAT, meaning a maximum of 2.38 gross net cold rents. With a cold rent of €1,500, this amounts to a maximum of €3,570 — the real estate agent may not ask the tenant for a single cent more.

Negotiation strategies: Where the real room for maneuver lies

The commission is negotiable even at premium locations, despite market-standard rates. Experienced investors use three levers: volume, market phase, and exclusivity. When buying a Apartment building for sale starting from 2 million €, 2.5 % instead of 3.57 % is realistic — often even less in private sales with time pressure.

Decision matrix: When is a real estate agent even worth it?

For Seller, the question arises whether the commission of 3.57 % of the sales proceeds is justified by the real estate agent’s performance. The honest answer: It depends on location, market phase and own competence. Whoever correctly assesses the options in the Real Estate Buying Market Conditions and knows the market can often gain 2–3 % net proceeds when selling a house without a real estate agent.

• Real estate agent makes sense — Off-Market, inheritance, time pressure, complex properties
• Selling on your own makes sense — Standard locations, high demand, clear properties
• Hybrid — Rating with a real estate agent, marketing yourself
• Fixed-price real estate agent — often cheaper with lower purchase prices

For detailed calculation of the commission amount and tax effects, the real estate agent commission calculator is recommended — it immediately shows how the commission affects net yield calculation and equity requirement calculation.

Frequently asked questions about real estate agent commission

Exactly when is the commission due?

The commission becomes due upon notarization of the purchase contract, not only after the property transfer is registered in the land register. The real estate agent must have demonstrably caused the contract to be concluded — meaning they brought the parties together or actively promoted the conclusion of the contract. Regarding the buyer’s share under the principle of the ordering party, § 656c Abs. 2 BGB applies additionally: the buyer pays only after the seller has settled their share and this has been proven. Anyone who pays in advance without this proof can reclaim the payment as being without legal basis.

Can I deduct the commission for tax purposes?

For rented real estate, yes, but not immediately as a deductible expense — the commission counts as part of the acquisition costs and increases the depreciation base of the building portion. With an investment of 500,000 €, 17,850 € commission, and 80 % building portion, 14,280 € flows into the depreciation, which provides a tax relief of 285.60 € annually at 2 % depreciation. There is no deduction for personal use. If the property is sold within the 10-year speculation period, the commission paid at that time further reduces the taxable gain from the sale under § 23 EStG.

Is the commission negotiable?

Yes, completely — there is no legally defined minimum or maximum rate when purchasing real estate, only market-based regional values. According to the buyer’s principle under § 656c BGB, only the distribution of 50/50 is prescribed, not the absolute amount. Negotiation room is particularly present for high-priced properties starting at 1 million €, multi-family homes, commercial real estate, and off-market deals. Realistic reductions range between 0.5 and 2 percentage points — for large volumes, this can quickly amount to five- or six-figure sums. Only when mediating rental apartments does the fixed upper limit of 2 net cold rents plus VAT apply.

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