Real Estate Commissions in Luxembourg: Complete Guide 2026

Introduction

The agency commission is often the biggest expense for a property seller in Luxembourg. On a property sold for €900,000, a 3% + VAT commission represents €31,590.

How Does Commission Work in Luxembourg?

In Luxembourg, there is no legal tariff. Each agency sets its own rates:

• Average rate: 3% + VAT (17%), i.e., 3.51% gross
• Range: 2% to 5% + VAT
• Minimum commission: some agencies set a floor of €5,000-10,000

Who Pays the Commission in Luxembourg?

In Luxembourg, the seller traditionally pays the agency commission.

VAT on Commission

Commission is subject to Luxembourg VAT of 17%. 3% net = 3.51% gross.

How to Negotiate Commission

• Compare multiple agencies via Sellect.lu
• Offer an exclusive mandate (0.5-1% discount)
• Request degressive rates for high-value properties

Impact on Net Seller Price

On a sale at €900,000:

• 2% + VAT: net seller = €878,940
• 3% + VAT: net seller = €868,410
• 5% + VAT: net seller = €847,350

Is Commission Tax Deductible?

Yes. The agency commission is deductible when calculating capital gains.

FAQ

Is the commission negotiable?

Yes, always. There is no legal tariff in Luxembourg. Compare 3+ agencies on Sellect.lu.

What happens if I terminate the mandate before the sale?

With a simple mandate, you can terminate at any time. With an exclusive mandate, you must respect the agreed duration. Beware: a "trailing clause" may apply for 6-12 months.

Are there hidden agency fees?

Some agencies charge separately for photos (€200-500), premium advertising (€100-300/month), or guided tours. Request a detailed quote.