Estate agency fees in Luxembourg: who pays, how much

Agency fees for a rental: the 50/50 split

This is the change many people still overlook. For any lease signed since 1 August 2024, estate agency fees are mandatorily split equally (ouvre dans un nouvel onglet), 50/50, between the landlord and the tenant. And this applies no matter who engaged the agency: whether the landlord asked it to find a tenant, or the tenant asked it to find a home, each pays half.

Another important point: any clause in the lease that says otherwise is void. A contract that would make you, as a tenant, pay 100% of the agency fees has no legal value.

How much? The rental agency commission is generally around one month's rent excluding charges, plus VAT at 17%. Since the reform, this amount is simply split in two. In practice, on a rent of 1,500 euros, the commission is roughly 1,500 euros plus VAT, of which half is yours if you're the tenant.

One detail that matters: this rule applies to new leases. Contracts signed before 1 August 2024 remain valid as they are and aren't affected by the split.

Agency fees for a sale: who pays, how much

Here, there's no fixed legal rule. The official scale that used to cap commissions was scrapped about twenty years ago, and since then fees are free. In practice, an agency's commission for a sale is often around 3% of the sale price, plus 17% VAT on that commission. This rate can vary from one agency to another, and it's open to discussion.

Who pays? Usually the seller, because they're the one who signs the sales mandate, meaning the contract that tasks the agency with selling their property. But it's not mandatory. The buyer can also be the one who pays, especially if they've signed a search mandate, meaning they've tasked the agency with finding them a specific property.

Net-to-seller price or agency fees included: the nuance that matters

In listings, you'll come across two labels, and they change your final bill.

A net vendeur price (net to the seller) means the seller wants to receive that sum, and the agency's commission comes on top. A frais d'agence inclus price, often shown as FAI (agency fees included), means the commission is already part of the displayed amount. Either way, remember one thing: even when it's officially the seller who pays the agency, the commission is in reality built into the price that you, the buyer, finance. That's why who pays on paper doesn't tell the whole story.

What the commission covers

Paying 3% on a property worth several hundred thousand euros is a real amount. So it's worth knowing what you're buying.

An agency handles the valuation of the property, the photos and the listing, its distribution on property portals, the organisation of viewings, the negotiation between buyer and seller, and the administrative follow-up of the file up to the signing at the notary. Some charge extra for certain services, such as a standalone valuation or professional photos, if you don't sign a sales mandate with them.

Before you sign, ask what's included and what isn't. It's the best way to avoid unpleasant surprises.

Can you negotiate agency fees

For a sale, yes. Since no rate is imposed by law, the percentage is open to discussion, especially for a high-value or easy-to-sell property. Nothing stops you from comparing several agencies and letting them compete.

The type of mandate matters too. An exclusive mandate, where a single agency handles your property, often comes with a lower commission than an open mandate, where you entrust the property to several agencies in parallel. In return, you commit to a single agency for a set period.

And if you want to avoid fees, you can always sell or rent directly, without an agency. You keep the whole amount, but you take on the photos, the viewings, the negotiation and the paperwork. That's time and energy: it's up to you to decide what it's worth for your situation.

Agency fees and notary fees: don't mix them up

Many people confuse the two, when they have nothing to do with each other. Agency fees pay the agency for its matchmaking work. Notary fees mainly cover the registration and transcription duties owed to the State when you buy, at 7% of the price in principle.

Good news on this second part: for your main home, the Bëllegen Akt (ouvre dans un nouvel onglet) tax credit cuts these duties by up to 40,000 euros per buyer. It doesn't touch the agency's commission, but it clearly lightens the overall cost of your purchase.