Real Estate Agent Commissions by Country

The commissions paid to real estate agents and brokers are a popular topic in real estate. The structure and the rate of these commissions vary by country. It is also true that in some countries there is no buyer’s agent, so buyers commonly avoid paying commission fees altogether.

Below, we have compiled a list of real estate transaction fees by country; the specific commissions that real estate agents earn as transactions are completed, the taxes on those commissions, the party that pays those commissions, the prevalence of buyer’s agents in that country, and any exceptions for foreigners.

Commissions by Region

— Real Estate Commissions in Asia (like Japan, Thailand, Hong Kong, and more)
— Real Estate Commissions in Europe (like Germany, Greece, Spain, and more)
— Real Estate Commissions in North America (United States and Canada)
— Real Estate Commissions in Latin America (like Panama, Costa Rica, and more)
— Real Estate Commissions in Oceania (Australia and New Zealand)

For individual companies that help foreigners with real estate transactions, visit this list of international real estate services that service foreigners.

Agent Commissions in Asia

Agent Commission Rates in Japan

  • Commission rate: Japanese property agent commissions have a legal cap of 3% of property price + 60,000 JPY. However, for properties priced 8 million JPY or less, the maximum commission is 300,000 JPY.
  • Tax on agent commission: The government applies a 10% consumption tax to real estate agent commissions in Japan. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: Both the seller and buyer pay a commission to their respective agents. In the case of a one agent deal, both the buyer and seller may pay a commission to the agent.
  • Buyer representation: The buyer is able to hire a buyer’s agent, but it is common for one Japanese real estate agent to handle both sides of the transaction. Dual agency in Japan is preferred by selling agents, but when looking to buy in big markets like real estate in Osaka, a buyer’s agent agreement may be worthwhile.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Japan.

Agent Commission Rates in Hong Kong

  • Commission rate: Hong Kong property agent commissions are typically 1-2% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: There is no tax added to Hong Kong real estate agent commissions.
  • Who pays: There are cases where the seller pays the full commission to their agent, but it is common that the buyer pays half of the commission (usually 1% of property price).
  • Buyer representation: It is common for Hong Kong real estate buyers to hire their own agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Hong Kong.

Agent Commission Rates in Taiwan

  • Commission rate: Taiwan property agent commissions are typically 4-6% of the property price, with 3% being the most common. There is a legal 6% cap to real estate commissions in Taiwan.
  • Tax on agent commission: The government applies a 5% Value-Added Tax to real estate agent commissions in Taiwan. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: Unlike many other countries, buyers also pay a real estate commission in Taiwan. Typically, sellers pay 3-4% property price, and buyers pay 1-2%, totaling to 4-6%.
  • Buyer representation: It is uncommon for Taiwanese real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Taiwan.

Agent Commission Rates in Singapore

  • Commission rate: Singapore property agent commissions are typically 1-2% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 9% Good and Services Tax to real estate agent commissions, if the agency is GST-registered. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission. However, depending on the agreement, buyers may also pay a buyer’s agent fee.
  • Buyer representation: It is uncommon for Singaporean real estate buyers to hire their own agent. However, dedicated buyer’s agents are becoming more common.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Singapore.

Agent Commission Rates in South Korea

  • Commission rate: South Korean property agent commission rates have legal maximums depending on the property type and value. For sales over 900 million KRW, the maximum is 0.9% (often negotiated lower)
  • Tax on agent commission: There is no tax added to real estate agent commissions in South Korea.
  • Who pays: The seller usually pays the full commission.
  • Buyer representation: It is uncommon for South Korean real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in South Korea.

Agent Commission Rates in Thailand

  • Commission rate: Thailand property agent commissions are typically 3-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 7% Value-Added Tax to real estate agent commissions in Thailand. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission.
  • Buyer representation: It is uncommon for Thai real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Thailand. However, international services that help foreigners buy property are common, and these firms may charge additional service fees.

Agent Commission Rates in Vietnam

  • Commission rate: Vietnam property agent commissions are typically 1-3% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 10% Value-Added Tax to real estate agent commissions in Vietnam. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission.
  • Buyer representation: It is uncommon for Vietnamese real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Vietnam.

Agent Commission Rates in Philippines

  • Commission rate: Philippines property agent commissions are typically 3-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 12% Value-Added Tax to real estate agent commissions in the Philippines. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Philippine real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the Philippines. However, foreigners cannot own land, and can only buy houses or structures, and can only lease the land that they are on.

Agent Commission Rates in Malaysia

  • Commission rate: Malaysian property agent commissions are typically 2-3% of the property price. There is a legal 3% cap to real estate commissions in Malaysia.
  • Tax on agent commission: The government applies a 6% Service and Sales Tax to real estate agent commissions in Malaysia. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission, but can vary depending on the agreement between parties.
  • Buyer representation: It is uncommon for Malaysian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the Malaysia.

Agent Commission Rates in Indonesia

  • Commission rate: Indonesia property agent commissions are typically 3-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 2% tax to real estate agent commissions in Indonesia. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission, but can vary depending on the agreement between parties.
  • Buyer representation: It is uncommon for Indonesian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the Indonesia.

Agent Commission Rates in UAE

  • Commission rate: UAE property agent commissions are typically 2-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 5% Value-Added Tax to real estate agent commissions in the UAE. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: Generally the buyer pays the commission in Dubai and several other emirates. However, there are also instances where the seller may pay, or the commission is split.
  • Buyer representation: It is uncommon for UAE real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent or the developer’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the UAE.

Agent Commissions in Europe

Agent Commission Rates in Germany

  • Commission rate: German property agent commissions are typically 5-6% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 19% Value-Added Tax to real estate agent commissions in Germany. Agents add that additional tax amount to the commission fee paid by the client, usually totaling to 7.14% of the property price.
  • Who pays: Real estate commissions are split equally between the buyer and seller for residential homes and condominiums. For commercial property, land, or apartment blocks, the commission split may be paid entirely by one party, depending on the agreement.
  • Buyer representation: It is uncommon for German real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Germany.

Agent Commission Rates in Spain

  • Commission rate: Spanish property agent commissions are typically 3-6%, up to 8% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 21% Value-Added Tax to real estate agent commissions in Spain. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission. However, the commission is normally included in the sale price. Through large chain agencies, buyers may also be charged a separate commission.
  • Buyer representation: It is uncommon for Spanish real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Spain.

Agent Commission Rates in Portugal

  • Commission rate: Portugal property agent commissions are typically 5-6% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 23% Value-Added Tax to real estate agent commissions in Portugal. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Portuguese real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Portugal.

Agent Commission Rates in Poland

  • Commission rate: Polish property agent commissions are typically 2-3% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 23% Value-Added Tax to real estate agent commissions in Poland. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: For residential property, the buyer typically pays the full commission. For other types of real estate, the party that pays is negotiable.
  • Buyer representation: It is uncommon for Polish real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Poland.

Agent Commission Rates in Russia

  • Commission rate: Russian property agent commissions are typically 2-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 20% income tax to real estate agents’ commission profits in Russia. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: For residential property, the buyer typically pays the full commission. For other types of real estate, the party that pays is negotiable.
  • Buyer representation: It is uncommon for Russian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Russia.

Agent Commission Rates in France

  • Commission rate: French property agent commissions are typically 5-6% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 20% Value-Added Tax to real estate agent commissions in France. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for French real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in France.

Agent Commission Rates in the United Kingdom

  • Commission rate: The United Kingdom’s property agent commissions are typically 1-3% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: Agent commissions for residential property transactions in the United Kingdom are usually exempt from tax.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for United Kingdom real estate buyers to hire their own agent, but buyer’s agents are increasingly popular. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the United Kingdom.

Agent Commission Rates in Italy

  • Commission rate: Italian property agent commissions are typically 2-3% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 22% Value-Added Tax to real estate agent commissions in Italy. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The commission is commonly split equally between the seller and the buyer, each paying 1-2% of the property price. This may vary depending on the agreement.
  • Buyer representation: It is uncommon for Italian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Italy.

Agent Commission Rates in Greece

  • Commission rate: Greek property agent commissions are typically 2-5% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 24% Value-Added Tax to real estate agent commissions in Greece. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The commission is commonly shared between the seller and the buyer, each paying 2-3% property price. This may vary depending on the agreement, and sellers may pay more in some cases.
  • Buyer representation: It is uncommon for Greek real estate buyers to hire their own agent, but is growing in popularity. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Greece.

Agent Commission Rates in Turkey

  • Commission rate: Turkish property agent commissions are typically 2-4% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 18% Value-Added Tax to real estate agent commissions in Turkey. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The commission is commonly split between the seller and the buyer.
  • Buyer representation: It is uncommon for Turkish real estate buyers to hire their own agent, but is growing in popularity. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Turkey.

Agent Commissions in North America

Agent Commission Rates in The United States

  • Commission rate: The United States’ property agent commissions are typically around 4-7% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: There is no tax that applies to agent commissions.
  • Who pays: The seller usually pays the full commission. However, the buyer may pay their own agent, depending on the agreement.
  • Buyer representation: Written buyer agency agreements are common. Even with the rise of online property listing sites and proptech, exclusive buyer’s agents are still prevalent and provide an important service.
  • Foreigners: There are no special commission rates for foreigners buying real estate in the United States.

Agent Commission Rates in Canada

  • Commission rate: Canadian property agent commissions are typically 3-7% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 5-15% Goods and Services Tax (depending on the province) to real estate agent commissions in Canada. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission. However, the buyer may pay their own agent, depending on the agreement.
  • Buyer representation: Buyer representation agreements are common in Canada. Depending on the agreement, buyers may pay a separate fee to the buyer’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Canada.

Agent Commissions in Latin America

Agent Commission Rates in Mexico

  • Commission rate: Mexican property agent commissions are typically 5-8%, most commonly around 6% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 16% Value-Added Tax to real estate agent commissions in Mexico. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Mexican real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Mexico.

Agent Commission Rates in Colombia

  • Commission rate: Colombian property agent commissions are typically 3-7% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 19% Value-Added Tax to real estate agent commissions in Colombia. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Colombian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Colombia.

Agent Commission Rates in Panama

  • Commission rate: Panama’s property agent commissions are typically 5-7% of the property price. The rate is not fixed by law and may be negotiated, more rural area properties costing more.
  • Tax on agent commission: The government applies a 7% Value-Added Tax to real estate agent commissions in Panama. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Panamanian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Panama.

Agent Commission Rates in Costa Rica

  • Commission rate: Costa Rican property agent commissions are typically 5-8% of the property price. The rate is not fixed by law and may be negotiated. Rural areas may have higher rates.
  • Tax on agent commission: The government applies a 13% Value-Added Tax to real estate agent commissions in Costa Rica. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission.
  • Buyer representation: It is uncommon for Costa Rican real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Costa Rica.

Agent Commission Rates in Argentina

  • Commission rate: Argentina’s property agent commissions are typically 3-4% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 21% Value-Added Tax to real estate agent commissions in Argentina. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: Both the buyer and seller are often charged a commission separately. It is common for the seller to pay 3% property price, and the buyer 4%.
  • Buyer representation: It is uncommon for Argentinean real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Argentina. However, it is common for foreigner buyers to negotiate a lower buyer-side commission.

Agent Commission Rates in Brazil

  • Commission rate: Brazilian property agent commissions are typically 5-8% of the property price. The rate is not fixed by law and may be negotiated. Rural areas may have higher rates.
  • Tax on agent commission: The government applies a 26.5% Value-Added Tax to real estate agent commissions in Brazil. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller typically pays the full commission. Buyer-paid commissions are not authorized by local real estate councils.
  • Buyer representation: It is uncommon for Brazilian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Brazil.

Agent Commission Rates in Uruguay

  • Commission rate: Both the buyer’s and the seller’s agent in Uruguay each earn a commission of 3.28% of the property price.
  • Tax on agent commission: The government applies a 22% Value-Added Tax to real estate agent commissions. Agents add that additional tax amount to the commission fee paid by the client, the total agent commission totaling to 4% of the property price.
  • Who pays: The seller and buyer each pay their own agent 4% of the property price.
  • Buyer representation: Uruguayan real estate buyer’s agents do exist and operate under exclusive buyer broker agreements.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Uruguay.

Agent Commissions in Oceania

Agent Commission Rates in Australia

  • Commission rate: Australian property agent commissions are typically 2-3% of the property price. The range tends to vary depending on the area, rural areas being more expensive. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 10% Goods and Services Tax to real estate agent commissions in Australia. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission.
  • Buyer representation: It is uncommon for Australian real estate buyers to hire their own agent. Most buyers deal directly with the seller’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in Australia.

Agent Commission Rates in New Zealand

  • Commission rate: New Zealand’s property agent commissions are typically 2-3%, averaging at 3% of the property price. The rate is not fixed by law and may be negotiated.
  • Tax on agent commission: The government applies a 15% Goods and Services Tax to real estate agent commissions. Agents add that additional tax amount to the commission fee paid by the client.
  • Who pays: The seller usually pays the full commission, because agents are not legally allowed to receive commissions from both the buyer and seller. However, the buyer may pay their own agent, depending on the agreement.
  • Buyer representation: Buyer representation agreements are common in New Zealand. Depending on the agreement, buyers may pay a separate fee to the buyer’s agent.
  • Foreigners: There are no special commission rates for foreigners buying real estate in New Zealand.

See Also:
— An overview of off-market real estate deals
— Book review of Multi-Family Millions by David Lindahl
— Book review of Crushing It by Brian Murray
— Services that help foreigners buy or rent real estate
— What is dual-agency in real estate transactions?