How much can you earn, as a Real Estate Agent in Spain?
If working for yourself in Real Estate in Spain, the commissions can be HUGE. Spain has one of the highest property sales commission percentages in Europe. This percentage normally depends on the area and varies between 3% to 6% for resales, but typically it will be 5% commission. So as an example, if you sell a €500`000 property, the total commission will be €25´000 plus IVA.
In the new-build sector developers usually pay 10% or even more. When a buyer pays the initial 30% stage payment for an off-plan property, the agent expects their commission to be paid then. As a result. you will have been paid long before the buyer gets the property. For example, if you sell an off-plan property for €500´000, the total commission payment will be €50´000 plus IVA.
Even as a real estate employee, throughout the whole of Spain, the estimated average pay is about €42´642 (including bonuses). However, Real Estate Agents who live on the coastal areas of Spain can make a great deal more than that as property is significantly more expensive. It is not uncommon to earn salaries in excess of €100´000!
Who pays and when?
With a property resale, the seller always pays the real estate commission. When you see a property published at a specific price, the real estate agency commission is already included in that price. Most agencies charge the first 50% of their fee after the initial downpayment contract has been signed. The final 50% is paid at purchase point.
Years ago, real estate agencies used to charge one month of rent, as a commission. But over time this has increased to 10% of a yearly rental income (+ IVA). For example: If you’re a property is renting for 1200€ per month, your commission would be €1440 (+ IVA)
Combined sales or rentals
Very often you will have a buyer, and another agent has a property that your buyer wishes to purchase. In this scenario, it is customary for both agents to share the commission. Its almost always a 50/50 share of commission. But at times the agent with the property will offer you more than 50%.
How you can earn more as an estate agent
When working for yourself, your earnings are going to come from commissions. If you want to increase your earnings, you need to sell as many properties as possible. And ideally focus on the more luxury properties. The more luxury the property, the more expensive the property, the more the commission. The really great thing about working as your own boss in real estate is that it depends almost solely on your own desire, drive, motivation, abilities, and efforts. Whether you work part-time hours, or full-time hours the more hours you put in, the more reward you will receive. And never forget, your people skills, your likability is also very important, it’s important to always remember that people like to buy from people they like!