Spoiler: usually, it’s the seller.
But — because this is Spain — there are always exceptions, side agreements, and fine print worth understanding before you sign anything.

What Do Real Estate Agency Fees Actually Cover?

Paying agency fees isn’t just “a random commission.” It’s payment for a full professional service that goes way beyond showing apartments and taking nice photos.

Most agencies include:

• Property valuation and pricing strategy. Setting a realistic (and appealing) price based on the local market.
• Property preparation. Some offer home staging, professional photography, and even virtual tours.
• Viewings management. They organize appointments, filter out time-wasters, and handle buyer questions.
• Legal paperwork. Preparing the contrato de arras (deposit agreement), handling the sales contract, taxes, certificates, and all required documentation.

In short: if your agency does its job right, those fees translate into time saved, less stress, and a smoother transaction.

So… Who Usually Pays?

In most cases in Spain — including Tenerife — the seller pays the agency fees.
That’s because the seller is the one hiring the service to market and sell the property.

However, there’s no law that enforces this rule. Depending on the deal, it can go several ways:

1. 🧾 The seller pays. The standard case — the agency works for them and takes a percentage (usually 3%–5%).
2. 🤝 Shared fees. Sometimes buyer and seller agree to split the costs.
3. 🔍 Buyer hires the agency. If a buyer contracts an agent to find the perfect home or help with mortgage negotiations, they’ll be the one paying.

The golden rule: everything must be written clearly in the real estate agreement, stating who pays, when, and how much.

Is It Legal for an Agency to Charge the Buyer?

Yes — totally legal.
There’s no national regulation in Spain preventing an agency from charging the buyer, as long as it’s transparent and agreed upon beforehand.

It’s actually common in premium or tailor-made property searches, where the buyer requests a specific service.

Are There Agencies That Don’t Charge Buyers?

Yes — quite a few, in fact.
Some agencies promote “no fees for buyers” as part of their marketing strategy. But let’s be honest: that doesn’t mean the service is free.

In most cases, the cost is already built into the property’s sale price, so the seller indirectly covers it.
However, if you hire an agency to search for a home on your behalf, that’s a personalized service — and yes, you’ll pay for it.

When Are Real Estate Fees Paid?

Typically, agency fees are paid at the moment of signing the final sales contract (when the deal officially closes).
Some agencies request an advance payment during the contrato de arras (deposit agreement) or at the start of the collaboration.

If the sale never goes through, what happens next depends on the contract:

• Some agencies charge a smaller amount for the work already done.
• Others don’t charge anything unless the sale is completed.

Always check what’s written in the intermediation contract before signing.

Can You Deduct Real Estate Fees?

Yes — but it depends on your role:

• For sellers: agency fees can be deducted from your capital gains when declaring taxes, reducing the taxable profit.
• For buyers: these fees form part of your acquisition cost. If you sell the property later, they’ll help reduce future capital gains too.

💡 Pro tip: keep all invoices and contracts. You’ll thank yourself at tax time.

The Bottom Line

There’s no universal rule. In Tenerife — just like the rest of Spain — who pays the real estate fees depends entirely on the agreement between the parties.

The key is to avoid assumptions, read the contract carefully, and work with a transparent, trustworthy agency that explains every step clearly.

⚠️ Disclaimer

This article is for informational purposes only. Real estate practices may vary depending on the agency and region. Always consult a qualified lawyer or gestor before signing any property-related documents.

The post Who Pays the Real Estate Agency Fees — the Buyer or the Seller? first appeared on Adeje.com.