Commercial Property Fees in Malta: What You Have to Know
Anyone considering buying or renting commercial property in Malta should have a clear understanding of how estate agency fees work. Whether you are a company looking for your next office, an investor adding to your portfolio, or a developer preparing a project, knowing how commissions are structured, and who is responsible for paying them, makes negotiations smoother and financial planning more accurate.
In Malta, commercial property fees follow standard market practices and are always subject to 18% VAT. The percentage charged can vary depending on the type of transaction, the agreement with the agency and whether additional charges apply.
How Commercial Property Fees Differ: Renting vs. Sales
The way commercial property fees are calculated depends largely on whether the property is being leased or sold. Commercial lettings generally involve a fee shared between the landlord and tenant, while sales commissions are normally covered by the seller.
Renting Commercial Property in Malta
When you rent office space, retail outlets, or other commercial units in Malta, the standard commission is 10% of one year’s annual rent + 18% VAT. This fee is paid in full by the landlord and the tenant.
Sometimes, a lease premium is charged – an upfront sum paid to secure a tenancy, particularly in high-demand locations or when lease conditions are highly attractive. It may also form part of a turnkey or fit-out package.
If a premium applies, the estate agent usually charges an extra 5% + 18% VAT on the premium value. Importantly, this only applies to actual cash premiums and not to rent payments.
Buying & Selling Commercial Property in Malta
In terms of property sales, fees usually mirror those in the residential market. Estate agents typically charge between 3.5% and 5% of the final sale price + 18 VAT.
Who Pays Commercial Property Fees in Malta?
In commercial leases, both parties contribute equally with the landlord and tenant each paying 10% of the first year’s rent plus 18% VAT. Payment is usually made when the lease is signed, with all obligations clearly stated in the lease contract.
For sales transactions, the seller typically covers the commercial property fees, as they are the party engaging the agent to promote the property and negotiate terms. However, in open agency models, if a buyer hires their own representative, the buyer may also be liable for a separate fee.
How Are Fees Calculated?
Commercial property fees often include incentives such as rent-free months, stepped rent increases, or moratoria, particularly in new developments or long-term deals. To create consistency, agencies calculate commission on the average rent across the lease term (Di Fermo rent) rather than on discounted or incentive-based figures.
Where a lease premium (such as key money, a fit-out payment, or a lump-sum to secure tenancy) is part of the agreement, agents normally charge an additional 5% + 18% VAT on that amount. This does not affect the rent or sale price.
Minimum Fees and Flat-Rate Arrangements
Some agencies apply a minimum threshold for commission, particularly for short leases or low-value properties. For example, if the standard percentage fee works out to a small amount, a flat minimum (often around €1,500 + VAT per party) may apply.
Although less common, flat-rate fees exist to cover the time and administrative work required, ensuring agents are fairly compensated even when the property value is lower.
Sole vs. Open Agency Agreements
When appointing a commercial estate agent in Malta, property owners usually choose between a sole agency or open agency agreement.
- Sole agency agreements: Give one agent exclusive rights for a fixed period (typically 3–12 months). These often carry lower fees (around 3.5%) and come with focused marketing, clearer communication, and consistent deal management. This model is particularly effective for sensitive or high-value assets.
- Open agency agreements: Allow multiple agents to market the property at once. Commercial property fees are only payable to the agent who finalises the deal, usually at 5%. This option offers broader exposure and flexibility but can lead to mixed marketing strategies.
Ancillary Fees and Additional Services
Commercial property fees generally covers core services such as property listings, outreach, viewings, and negotiations. However, depending on the transaction, extra services may incur separate charges.
These include:
- Premium or international marketing campaigns
- Legal coordination (title checks, liaison with notaries)
- Energy Performance Certificates (EPCs)
- Lease registration support
- Technical surveys or planning consultations
While not always necessary, these additional services can be crucial for complex or large-scale transactions and should be budgeted for in advance.
When Are Commissions Payable?
For lettings: Fees are payable when the lease agreement is signed.
For sales: Payment is generally due when the final deed of sale is signed and ownership is transferred.
In some cases, particularly when the agent secures the buyer, fees may also be due at the signing of the Konvenju (promise of sale), which legally binds both parties to complete the transaction later.
Clear agreement on payment timing avoids misunderstandings and ensures transparency from the outset.
What Factors Influence Commission Levels?
The cost of commercial property fees in Malta or sales commissions can depend on:
- Size and value of the property – larger or high-value assets require more effort.
- Transaction complexity – multi-unit or mixed-use projects may involve higher fees.
- Service level required – from basic listing to full marketing and investor matchmaking.
- Market dynamics – boutique firms may offer flexible arrangements, while larger agencies tend to use fixed scales.
Why Use a Specialist Commercial Property Agency in Malta?
Malta’s commercial property market is dynamic, and working with a professional agency ensures smoother, more secure transactions. Experienced agents bring local knowledge, tailored strategies, and negotiation expertise. A specialist partner can maximise value, streamline the process, and provide peace of mind at every stage of the transaction.