Five percent plus VAT. Compared to 1–3% in other countries, it sounds like highway robbery at first glance.
We understand why the question comes up again and again: “Why do you charge so much more than back home?” It’s a fair question, and it deserves an honest answer rather than a defensive one. The truth is that the workload, the risk, and the business model behind a real estate deal on the Costa del Sol look very different from other international models. So let’s do some quick math to see where the money actually goes – and why the number isn’t quite as generous as it looks on paper.
The Real Split: How Commissions Are Shared
Most deals on the Costa del Sol involve two agencies working together – one holds the listing, the other brings the buyer. 5% becomes 2.5% per agency. The agency then takes its cut, and the individual agent is left with somewhere between 10% and 70% of that, depending on whether they’re employed or working as a consultant. Do the math yourself: it’s rarely the juicy lump sum people imagine at first glance. A listing with a fee under 5% is also often harder to sell in practice – the payout simply isn’t enough to cover the work of finding the right buyer.
No deal, no pay
Unlike many other industries, the agent works for free until the property actually sells. Photography, video, drone footage, renders, listings on international portals, showings for clients flying in from the other side of the world – it’s all paid upfront, by the agent. Just a render like the one above in this article, at a cost of €450 + VAT per picture, a cost covered by the agent. If the home doesn’t sell? Zero payout, no matter how much time and money has already gone in. During slower periods in the market, with fewer deals closing, this becomes even stronger: income can drop to zero while the costs of running the business stay exactly the same.
More than just someone who opens doors
On an international market like Malaga and Costa del Sol, the agent’s role quickly grows into something far bigger than “show the apartment and sign the contract”:
— Coordinating viewings for buyers flying in for a single weekend
— Guiding clients through the Spanish buying process, step by step
— Connecting clients with lawyers and banks
— Staying available as support long after the keys change hands
In deals without a lawyer involved, which does happen, the agent also takes on a large share of the legal paperwork – documents, coordinating between parties, practical matters ahead of completion. All without a lawyer’s professional liability insurance behind them. That’s a bigger responsibility than the percentage really reflects, and it demands a far broader skill set than a traditional viewing ever would.
Can AI do it cheaper?
New “AI agencies” promise lower fees by simply matching sellers with buyers – the seller handles the showings themselves. Tempting on paper. But who decides whether a prospective buyer is actually serious and financially qualified? That takes local knowledge, experience, and a read on people that an algorithm still can’t quite replicate. For the seller, the model also means taking on far more personal responsibility – viewings, questions and negotiations all land squarely on someone who may have never handled a property deal before. The peace of mind an experienced agent provides throughout the process, and long after closing, is hard to package into an app.
So, is it worth it?
The fee doesn’t just reflect a signature on a contract. It reflects the risk, the workload, the marketing, the international scope of the work, and the reassurance of having someone who actually knows the entire journey – from the first viewing to handing over the keys, and gladly a good while after that too. Saying an agent “charges a fortune for doing nothing” simply doesn’t reflect the reality behind the percentage.
At Franzén & Associates, that’s exactly how we work. We’re a boutique real estate firm founded by Malin Ingrid Franzén — who holds a Master’s Degree in Real Estate Business — together with her associates, bringing over 55 years of combined international experience across Spain, South America and Sweden. From our office in the heart of Málaga City, we combine analytical rigor with genuine local insight to guide clients toward strategic, well-informed property decisions — whether it’s a holiday home, a residence, or a pure investment. Nordic Elegance in Malaga:.
Malin Ingrid Franzén
Franzén & Associates
Master Degree in Real Estate Business
“Nordic Elegance in Malaga”
Calle Olózaga 8, pl. 1 · 29005 Málaga
