Does the Buyer-Pays Principle Apply to Commercial Real Estate?

When renting premises used exclusively as an office, retail unit, or warehouse, the buyer-pays principle applicable to residential tenancy agreements generally does not apply. A brokerage commission may therefore also be agreed with the tenant. However, a commission does not arise merely because a property is used for commercial purposes: the brokerage engagement, the agreement, and the statutory requirements for entitlement to commission must all align.

The decisive factor is the type of tenancy agreement being brokered. The fact that a company is acting as the tenant does not, by itself, answer the question. This guide explains what you should check before renting commercial premises in Austria. Last updated: September 2026.

Residential or Commercial Premises: The Type of Use Is Decisive

The buyer-pays principle, which has been in force since 1 July 2023, is governed by Section 17a of the Austrian Real Estate Agents Act (Maklergesetz). It applies to the brokerage of residential tenancy agreements. If the landlord engages the broker first, a commission may only be agreed with the landlord in the case of a residential tenancy agreement covered by this provision. Statutory exclusions and anti-circumvention rules also apply where the tenant was the first to issue a property search mandate. In the case of residential property, a search mandate therefore does not automatically create an obligation to pay. Source: Section 17a MaklerG

This special provision does not apply to a property rented exclusively as an office, retail space, or warehouse. Nevertheless, examine the specific agreement: describing a property as “commercial” in an advertisement does not replace a proper legal classification.

What Applies to Mixed-Use Premises?

A general answer is insufficient where a residential property includes a home office, a studio includes living accommodation, or premises combine commercial and residential areas. The contractual purpose, the actual configuration, and the relative extent of the different uses must be assessed together. If the classification affects the commission, have it clarified before entering into a brokerage engagement.

What Applies When a Company Rents a Residential Property?

The fact that a company is the contracting party does not automatically turn a residential property into commercial premises. Conversely, Section 17a also contains specific exceptions, including certain residential tenancy agreements entered into by employers for their employees. The specific circumstances are decisive. The rule of thumb that “a company always pays” is therefore unsuitable.

When Can a Commission Be Payable for Commercial Premises?

The relevant requirements must be met for a commission to be payable. Under Section 6(1) MaklerG, this depends in particular on whether the brokered transaction is concluded as a result of the broker’s contractual and meritorious activities. A viewing alone does not mean that a commission is due. Likewise, a note in the property particulars does not replace a review of the agreements and the subsequent course of events. Source: Section 6 MaklerG

Before engaging a broker, clarify the following in writing:

• Who is engaging the broker: the landlord, the prospective tenant, or both parties?
• What services is the broker expected to provide for you?
• What commission is being agreed, and on what basis will it be calculated?
• Does the stated amount include VAT?
• What event triggers entitlement to commission under the agreement?
• Are any additional costs or special arrangements envisaged?

The statement “the buyer-pays principle does not apply here” is not a substitute for this information. Even outside the scope of that principle, the general provisions of brokerage law and the applicable commission limits continue to apply.

Review the Commission and Overall Budget Separately

Do not compare commercial properties solely on the basis of their monthly net rent. To make an informed decision, you need a complete overview of recurring payments and one-off expenses. These may include operating costs, VAT, the security deposit, fit-out costs, permits, relocation expenses, and an agreed brokerage commission.

Request a transparent commission calculation for the specific property. A mere reference to a certain number of months’ rent is too imprecise for budget planning if it is unclear which components are included in the basis of calculation. The term and type of agreement may also be relevant. You should therefore not apply a flat rate stated in a residential property advertisement to a commercial agreement.

Practical comparison: When comparing two retail units, a lower monthly rent may be offset by higher conversion costs or a different one-off expense. Have both offers compared using the same cost items. A sample calculation is only meaningful once the basis of calculation and the applicable tax treatment have been established.

Clarify the Type of Agreement and Permitted Use

Not every agreement concerning business premises is a straightforward lease of space. If, for example, an equipped business is made available together with other elements required for its continued operation, it may be necessary to distinguish between a lease (Miete) and a business tenancy (Pacht). This may give rise to different legal issues. Whether the Austrian Tenancy Act applies to commercial premises also cannot be determined solely from the title of the agreement. Sources: Austrian Federal Economic Chamber (WKO) on distinguishing between leases and business tenancies and on the scope of the Austrian Tenancy Act.

You should also check whether your intended business activity is legally permitted and practically feasible at the location. The permitted use stated in the tenancy agreement, building-law requirements, and any required business-facility permit are separate matters that must each be examined. A suitable location alone does not answer these questions.

Checklist Before Engaging a Broker

• Classify the property: Is it purely commercial space, residential property, or mixed-use premises?
• Clarify the contracting parties: Who will be the tenant, and for what purpose?
• Review the engagement: Document the services, commission, and any additional costs.
• Request a calculation: Ensure that the basis of calculation, VAT, and total amount are transparent.
• Check the location: Coordinate the intended use, facilities, and required permits.
• Resolve uncertainties in advance: Have any outstanding contractual or legal issues reviewed before making a binding declaration.

Frequently Asked Questions About Renting Commercial Premises

Does the Commercial Tenant Always Have to Pay?

No. The mere fact that the buyer-pays principle does not apply to purely commercial premises does not, by itself, establish a broker’s entitlement to commission from the tenant. The agreements and the statutory requirements are decisive.

Does the Buyer-Pays Principle Also Apply When Purchasing an Office?

The special provision in Section 17a MaklerG applies to residential tenancy agreements. It does not cover the purchase of real estate. The commission permitted and payable in connection with a purchase must be assessed separately.

Is Verbal Notice of the Commission Sufficient?

To make a sound decision, you should obtain the engagement, the basis of calculation, and the amount in writing. Whether a legally effective agreement has already been concluded in a particular case, and which information obligations apply, depends on the circumstances. Do not assume that the absence of a signature necessarily means that no binding obligation can arise.

Can I Negotiate the Commission in Advance?

Discuss remuneration before engaging the broker and record any agreement clearly. A statutory maximum is not an automatically agreed price.

Find Commercial Property with a Clear Overview of Costs

Are you looking for an office, retail unit, or other commercial premises? Discuss your intended use, budget, and location requirements with Simon Immobilien. Ask for an explanation of the costs applicable to the specific offer before making any binding declarations.

This overview is not a substitute for a legal review of an individual tenancy or brokerage agreement. The specific circumstances and the applicable legal provisions are decisive.