Real Estate Commissions in Luxembourg: Complete 2026 Guide

Introduction

The agency commission is often the single biggest expense for a property seller in Luxembourg. On a property sold for €900,000, a 3% + VAT commission amounts to €31,590. Understanding how commissions work allows you to negotiate effectively and optimise your budget.

How Commission Works in Luxembourg

In Luxembourg, there is no legal scale setting commission rates. Every agency is free to set its own fees. Here are the common practices:

• Average rate: 3% + VAT (17%), i.e. 3.51% including VAT
• Range: from 2% to 5% + VAT depending on the agency
• Minimum commission: some agencies set a floor of €5,000-10,000
• Degressive commission: reduced rate for high-value properties (over €1.5M)

The Different Commission Models

Percentage commission (standard)

The most common model. The agency receives a percentage of the final sale price. Advantage: the agency is motivated to obtain the best price. Drawback: the commission increases in proportion to the price.

Fixed commission (flat fee)

Some agencies offer a flat fee, for example €15,000 regardless of the sale price. Advantageous for high-value properties. Less common in Luxembourg.

Hybrid commission

A base flat fee + a percentage of the amount above a floor price. Example: €10,000 + 2% above €500,000. An interesting way to align the seller's and the agency's interests.

Who Pays the Commission in Luxembourg?

In Luxembourg, it is traditionally the seller who pays the agency commission. This is a major difference compared with some neighbouring countries:

• Luxembourg: seller pays 100%
• France: seller pays (sometimes shared)
• Belgium: seller pays
• Germany: shared 50/50 between seller and buyer

Be aware: even though the seller pays directly, the commission is indirectly built into the sale price. The buyer therefore also pays it indirectly.

VAT on the Commission

The commission is subject to Luxembourg VAT at the standard rate of 17%. When an agency advertises a "3% commission", this means 3% excluding VAT. The real cost is 3.51% including VAT.

Excl./incl. VAT conversion table:

• 2% excl. VAT = 2.34% incl. VAT
• 2.5% excl. VAT = 2.925% incl. VAT
• 3% excl. VAT = 3.51% incl. VAT
• 3.5% excl. VAT = 4.095% incl. VAT
• 4% excl. VAT = 4.68% incl. VAT
• 5% excl. VAT = 5.85% incl. VAT

How to Negotiate the Commission

Negotiating is not only possible — it is expected. Here are the most effective levers:

1. Compare several agencies

Request proposals from at least 3 agencies via Sellect.lu. Competition naturally drives rates down.

2. Offer an exclusive mandate

Agencies are willing to cut their commission by 0.5-1% in exchange for exclusivity. A 3-month exclusive mandate (mandat exclusif, the French term for an exclusive listing agreement) is a good compromise.

3. High-value property

For a property worth over €1 million, ask for a degressive rate: for example 3% on the first €800,000 and 2% above that.

4. Limit the services included

If you handle viewings or photos yourself, ask for a reduction on the base commission.

5. Performance-based commission

Propose a reduced base rate (2%) with a bonus if the sale price exceeds a certain threshold. This aligns the agency's interests with yours.

What the Commission Should Include

Before signing, check that the commission includes:

• Valuation and market analysis
• Professional photos and a virtual tour
• Writing and publishing the listing (multi-channel)
• Managing viewings and feedback
• Negotiating with buyers
• Support through to the notarial deed
• Coordination with the notary

If any services are billed on top (photos, premium advertising), this must be stated in writing in the mandate.

Impact of the Commission on the Seller's Net Proceeds

What matters is the net seller price: what you actually receive once the commission is deducted.

Example for a property sold at €900,000:

• 2% + VAT commission: net to seller = €878,940
• 3% + VAT commission: net to seller = €868,410
• 4% + VAT commission: net to seller = €857,880
• 5% + VAT commission: net to seller = €847,350

The difference between 2% and 5% = €31,590. That is considerable — but an agency charging 3% that sells your property for 5% more than an agency at 2% still leaves you better off in the end.

Is the Commission Tax Deductible?

Yes. The agency commission is deductible when calculating your real estate capital gain. It therefore reduces your taxable base. This is a significant tax advantage, especially on properties with a large capital gain.

Alternatives to the Classic Commission

• Private sale: 0% commission, but only 15-20% of all sales. Our guide.
• Online agencies: reduced commission (1-2%) but limited services. Barely present in Luxembourg.
• Matching platforms: Sellect.lu lets you compare agencies and their commissions free of charge.

FAQ

Is the commission negotiable?

Yes, always. There is no legal scale in Luxembourg. The rate is freely agreed between the seller and the agency. The most effective negotiation levers: comparing 3+ agencies, offering a short exclusive mandate, or bringing a high-value property. On Sellect.lu, you can compare proposals from several agencies in a single step.

What happens if I terminate the mandate before the sale?

It depends on the contract. With a simple (non-exclusive) mandate, you can terminate at any time. With an exclusive mandate, you must respect the agreed duration or the contractual notice period. Beware: a "trailing clause" (clause de suite) may oblige the seller to pay the commission if the buyer was introduced by the agency during the mandate, even if the sale completes after termination (usually 6-12 months).

Do I have to pay the commission if the buyer is a family member?

If you signed an exclusive mandate and the agency did not find the buyer, no — unless the mandate explicitly states otherwise. With a semi-exclusive mandate, a direct sale (family, friends, acquaintances) is possible without commission. Check the exact terms of your contract.

Are there hidden agency fees?

Some agencies charge separately for professional photos (€200-500), premium advertising (€100-300/month), or guided viewings. Demand an itemised quote before signing and make sure everything is included in the advertised commission.

Does a higher commission mean better service?

Not necessarily. A 5% commission does not guarantee a better result than a 3% one. What matters: the agency's track record (sale success rate, gap between asking and final price, average time to sell). Compare performance, not just fees.