WorkSpaces Commercial Property Agency Fees.

If you're buying or renting commercial property in Malta, it's important to understand how agency fees work. These commissions are subject to 18% VAT and vary depending on whether you're leasing or selling, as well as the type of agency agreement in place.

Renting Commercial Property

Commission on lease agreements is shared by both the landlord and the tenant. The landlord and the tenant are each expected to pay 10% of one year's rent + VAT.

If the lease includes a premium payment (such as key money or fit-out contributions), agents may also charge 5% + VAT on the premium.

Buying or Selling Commercial Property

Commission on sales agreements are typically paid by the seller of the property at a rate of 3.5–5% of the final price + VAT.

• Sole agency agreements which are exclusive to one agent tend to have a lower commission rate of around 3.5–4%.
• Open agency agreements are usually 5% and only payable to the agent who closes the deal.

Other Key Points

• Fees are payable on signing of either the lease agreement for rentals or the final deed of sale for purchases with a deposit payable upon signing a promise of sale agreement.
• Minimum flat fees may apply for smaller transactions (often around €1,500 + VAT per party).
• Ancillary services like premium marketing, legal coordination, or technical checks may incur extra charges.
• Commissions are usually based on the average rent (Di Fermo) for leases, ensuring temporary discounts or incentives don't affect the calculation.

Sole vs. Open Agency

• Sole agency: focused marketing, lower commission, better suited for complex or high-value properties.
• Open agency: multiple agents, broader exposure, but higher fees and less control.

Why Work With a Specialist

Malta's commercial property market is diverse, so having an experienced local agency is key. WorkSpaces offers tailored advice and strategic guidance to landlords, tenants, and investors across office, retail, and industrial sectors.