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OfficeMarket.mt Guide to Agency Fees for Commercial Property in Malta

Understanding how agency fees work is an important step when renting or purchasing commercial property in Malta. At OfficeMarket, we believe in keeping the process transparent, so here’s what you can expect.

Renting Commercial Property

When signing a lease, both parties contribute to the agency commission:

• Landlord: 10% of one year’s rent + 18% VAT
• Tenant: 10% of one year’s rent + 18% VAT

In cases where the agreement involves a premium (such as key money, goodwill, or contributions towards fit-outs), a commission of 5% + 18% VAT on the premium may also apply.

Buying or Selling Commercial Property

For property sales, the commission is normally the responsibility of the seller and is charged at 3.5–5% of the final selling price + 18% VAT.

• Sole agency arrangements which are exclusive to a single agency usually ask 3.5–4% upon the successful sale of the property.
• Open agency arrangements which involves multiple agencies marketing the same property typically request 5%, payable to the agent who secures the sale.

Important Details to Note

• Commissions are settled upon signing the lease contract (rentals) or at the final deed of sale (purchases). A deposit is usually required when a promise of sale agreement is executed.
• Minimum flat-rate commissions may apply for smaller deals (commonly around €1,500 + VAT per party).
• Additional services, such as enhanced marketing campaigns, legal support, or technical inspections may involve extra charges.
• For rental agreements, fees are calculated on the average rent (Di Fermo), ensuring short-term discounts or special offers don’t reduce the commission basis.

Sole vs. Open Agency Agreements

• Sole agency: one agent manages the property exclusively, usually at a lower commission. This approach often works best for larger or more complex transactions.
• Open agency: multiple agents market the property simultaneously, which increases exposure but generally comes with higher fees and less control.