Real Estate Agent Commission on Mallorca: Who Pays and How Much?

If you are buying property on Mallorca, you will soon run into a question that surprises many buyers from abroad: who actually pays the agent's commission, and how much is normal? In Spain things often work differently than in your home country. The seller usually covers the commission, sometimes it is split between both sides, and there is no legally fixed rate. That makes the agent's commission one of the most negotiable items in the whole purchase. This post explains who pays on Mallorca, what rates are common and what to watch out for in the agency agreement.

Who pays the agent commission on Mallorca?

The agent commission (comisión inmobiliaria) is the fee a real estate agent earns when a property is successfully sold or rented out. In Spain it is usually calculated as a percentage of the purchase price and is freely negotiable, since there is no legally fixed rate.

For property purchases, practice follows a simple rule: whoever hired the agent pays, and that is usually the seller. The agent builds the commission into the asking price. As a buyer you therefore pay the commission indirectly through the purchase price, but normally not as a separate invoice. There are exceptions: sometimes buyer and seller split the commission, and some buyers hire their own search agent (buyer's agent) and pay that fee directly.

For rental contracts, the situation changed clearly in 2023. Since the Ley 12/2023 (Ley por el derecho a la vivienda) came into force on 26 May 2023, the landlord must cover the costs for the agent and contract handling, not the tenant. For everything else that goes into a Spanish lease, see our guide to rental contracts in Spain.

How high is the commission when buying property?

The going rate on Mallorca for selling a property is 3% to 6% of the purchase price. On top of that comes 21% IVA (Spanish VAT). The exact percentage depends on the property, the area and how much work the agent puts in. For very high-priced properties, lower percentages are common because the absolute amount is still substantial.

Important: the commission is not the same as the purchase costs. Transfer tax, notary and land registry add roughly another 10% to 13% on top of the price. If the agent is paid indirectly through the purchase price, do not confuse the commission with those official costs. You will find a full overview in our guide to buying property on Mallorca.

What is in the agency agreement?

Before an agent starts working for you or the seller, there is a written mandate, the so-called Nota de Encargo. It states what the agent will do, how high the commission is and when it becomes due. Check these points before signing:

• Rate and reference amount: the percentage, and whether it applies to the asking price or the actual sale price.
• IVA: is VAT included in the stated rate or added on top?
• Exclusivity: an exclusive mandate (exclusiva) ties you to one agent. Without exclusivity you can work with several agents in parallel.
• When the fee is due: does the commission become due at the notary signing or already at the preliminary contract (arras)?
• Duration: how long does the mandate run, and how do you cancel it?

Is the commission negotiable?

Yes. Because there is no legally fixed rate, the commission is a matter of negotiation. As a seller you can push the percentage down, especially for an easy-to-sell property or a higher purchase price. As a buyer you negotiate the total price, which includes the commission. A reputable agent will tell you openly how high the commission is and who pays it.

How to recognise a trustworthy agent and which questions to ask up front is covered in our post on finding a reputable real estate agent on Mallorca.

You can find the official rules on VAT and rental law here:

Frequently asked questions about agent commissions

Who pays the agent commission on Mallorca? For purchases, the seller usually pays, because the seller hired the agent. The commission is then built into the purchase price. For rental contracts, the landlord has covered agency costs since the Ley 12/2023.

How high is the commission usually? The market rate is 3% to 6% of the purchase price plus 21% IVA. For very expensive properties the percentage is often lower, because the absolute amount is still high. There is no legally fixed rate.

Is the commission negotiable? Yes. Since no fixed rate is prescribed, you can negotiate the amount. As a seller you push the percentage down, as a buyer you negotiate the total price that includes the commission.

Conclusion

On Mallorca the agent commission is not a fixed amount but a matter of negotiation. For purchases, the seller usually pays 3% to 6% of the purchase price plus 21% IVA, with the cost built into the asking price. For rentals, the commission has clearly been the landlord's responsibility since 2023. As a buyer, do not confuse the commission with the official purchase costs, and read the agency agreement carefully before signing.

When a lot of money is at stake, it pays to look closely at the rate, IVA, exclusivity and due date in the contract. Knowing these points lets you negotiate with more confidence and avoid unpleasant surprises at the notary appointment.