COMMISSIONS OF REAL ESTATE AGENTS ARE DIFERENT FROM ONE COUNTRY TO ANOTHER
Each country has its own way of calculating commission for real estate agents. This does not depend only on the value and type of the property, but also on the company's provisions and rules in a particular country. Each commission must also include VAT, the rate of which varies through countries. It also depends if the real estate agent is paid only by the seller, or only by the buyer, or by both.
In Slovenia is with Law on real estate brokerage specified that is allowed that the real estate agencies charge the most 4% of commission, so in the most cases, the buyer and the seller pay 2% and 22% VAT is charged.
|COUNTRY||BUYER COMMISSION||SELLER COMMISSION||VAT|
|AUSTRIA||3.0||1.0 - 2.0||20|
|ITALY||2.0 - 7.0||2.0 - 7-0||22|
|HUNGARY||-||3.0 - 5.0||27|
|FRANCE||-||4.5 - 8.0||20|
|GERMANY||2.0 - 6.0||-||19|
|NETHERLANDS||1.0 - 2.0||1.0 - 2.0||21|
|BELGIUM||-||2.0 - 5.0||21|
|SWITZERLAND||-||3.0 - 5.0||8|
|SPAIN||-||1.5 - 6.0||10-21|
|USA||-||2.0 - 6.0||-|
We will show you the commissions of other countries in the next article!
In Austria, the cost of purchasing is very high. The total transaction costs are between 9.40% and 13% of the value of the property or the selling price. In Austria, in most cases, the buyer pays a 3% property commission (3.6%, including 20% VAT). The fee is determined by the Austrian regulations of real estate agents, which prohibit real estate agencies from charging more than is permitted by law.
The commission of real estate agents in Croatia is 6%, equally divided between buyer and seller. VAT on commissions is 25%. Commissions charged on important transactions may be reduced by prior arrangement with the agencies.
The activities of real estate agencies are regulated by the Real Estate Intermediation Act. However, the law does not limit the amount of the commission determined by the agency agreement.
Its interesting that in Croatia, real estate agents do not need a license for their work.
The commission in Italy pays sellers and customers.
In Italy there is no law that would dictate the amount of commissions, but it is determined by the City Chamber of Commerce. This means that agents determine the commission in a segment or district at their own judgment, but taking into account the usual business and standard practices that the judge would consider in possible legal disputes. For example, if the agent charges 5% and the customer refuses to pay, the clients can go to court in anticipation that the judge will allocate an average commission of 3% depending on the type of service in the particular region to be paid from the client to the agent.
In Hungary, real estate commissions range from 3% to 5% of the market value of the property (plus 27% VAT).
Commissions for real estate agents in France are governed by law. However, in some cases, customers may negotiate a discount. A commission is always paid by seller.
If a new property is selling, the development company pays the agency a commission.
The Commission is often contractually agreed and negotiated when the sales mandate is signed. Developers determine the commission they will pay when housing is sold to the agency of a particular property, explains.
In Germany, a commission with a contract value of up to EUR 15 million from 3.57% to 7.14%, including 19% of VAT, therefore, assets over EUR 15 million have a commission of at least 2.38%, including VAT.
The local real estate federation in each country determines the recommended commission. The final figure is then determined by competitive prices.
In the Netherlands, the buyer and seller pay 1.0% - 2.0% commission. 21% VAT is charged.
There are no official tariffs for real estate commissions in Belgium. Most real estate agencies charge a 3% commission on the sale of residential property (houses, apartments, buildings). This percentage can be increased to 4 or 5% depending on the value of the property: the lower the value, the higher the commission. 21% VAT is charged.
When you want to rent a property, a real estate agent is likely to charge a commission corresponding to a 1-month lease. The commission generally also includes administrative, advertising and other costs.
In Switzerland, real estate commissions vary between 3% and 5%. Usually this is paid by the seller. A real estate agent may agree for a lower selling price if a real estate commission has agreed in the contract. For example, if the sales price is 533,000 Fr, the minimum real estate commission will be 16,000 Fr (3% of the selling price), even if the property will be sold for less. 8% VAT is charged.
In Spain, sellers almost always pay a commission ranging from 1.5% to 6% of the selling price. However, if the value of the property is low, the commission is usually set at € 6,000. In the real estate market for new real estate, commissions are usually lower than for existing assets (in percentages). The more expensive it is, the lower is the commission.
The VAT rate differs between different regions. For example, in Catalonia, it is 10%. For commercial real estate customers usually pay a commission ranging from 2% to 6%, depending on the value of the property.
In Portugal, the seller pays a 5% commission. 23% VAT is charged.
Source of article: Tranio
Source of picture: Drugi svet, slovenian blogging magazine