Chapter
Rental yield in Spain: how to calculate it
Quick answer
A yield is rent divided by what you paid, but the net figure after costs, vacancy and tax is the one that matters. We print no yields for Spanish cities, because we found no official data to cite. Your own figure comes from real rents and real costs, not from a published average.
Applies toBuyers who want to compare homes by the income they could earn.
On this page: 15 sections
§ 1What a yield is
A rental yield expresses the income from a property as a share of its cost. The gross yield divides the yearly rent by the price. The net yield divides the rent left after costs, vacancy and tax by the total cost of buying. Both are simple arithmetic, and both depend on the inputs you choose. This page belongs to the section on renting and investing.
§ 2Why we print no figures
We looked for an official, current source of rental yields by city in Spain and did not find one we could cite. Figures online come from agents and portals, who have reasons to be optimistic, and rents in advertisements are asking rents, not agreed ones. We prefer to explain how to build your own figure. Yields by city explains how to compare cities.
Calculating a yield explains the calculation, and net yield after tax explains the effect of tax.
§ 3The inputs
You need the price, the costs of buying, the realistic rent, the empty months, the running costs and the tax. Each should come from a source you can name: a quote, a bill, a lease, an agent’s written estimate. Where you are guessing, say so and use a cautious value.
§ 4Costs of buying
The price is not the cost. Taxes, notary and registry fees, the lawyer and any works are added. The costs section explains the taxes. If you use a mortgage, the interest is a cost too, and the mortgages section explains the loan.
§ 5Running costs and vacancy
Count local property tax, community fees, insurance, repairs, agent fees and the months the home will be empty. Test a bad year, with extra empty months and a large repair.
§ 6Tax
A non-resident pays tax on rent, and for most the base is the gross rent with no deduction. The page on net yield explains how this changes the result. Rules for tourist lets may add VAT or other charges, as the holiday rentals chapter explains.
§ 7Compare on the same basis
Compare homes with the same method and the same cautious assumptions. A yield that depends on full occupancy and a high rent is only a hope until it is booked.
§ 8Link to strategy
The yield differs by strategy. The rules on buy to let explains long lets, and more on holiday rentals explains tourist lets.
The overview is in investment strategy explained.
§ 9Use it as a filter
Use the yield to reject poor choices, not to prove a good one. A decent net figure on cautious inputs is a start, and the legal and tax checks decide the rest.
§ 10Common mistakes
Using asking rents as agreed rents, forgetting purchase taxes, assuming no empty months, ignoring community fees and special assessments, and leaving out tax. Another mistake is to compare a net figure for one home with a gross figure for another. Use one method for all.
§ 11A worked method
Write the price and the costs of buying and add them. Write the rent at a cautious level and take off empty months. Take off yearly costs and tax. Divide what is left by the total cost. Repeat with a worse rent and a worse vacancy, and keep the lowest result in mind when you decide.
§ 12When the figure is low
A low yield can still suit a buyer who values use or growth, but say so honestly. If you need the income to meet a loan, a low yield is a risk. The mortgages section explains the costs and limits of borrowing.
§ 13Keep records
Keep the worksheet, the quotes and the bills so you can see how your assumptions compare with the results.
§ 14Seasonality
Rents and occupancy can swing with the season, especially for tourist lets. Look at a full year of figures, not the best month, and check what the home earns off season.
§ 15Back to the section
More on renting and investing explains how to earn from a Spanish property and the rules that limit it.
FAQRelated questions
What is a good rental yield in Spain?
We give no figure. Yields depend on the city, the type of home, the way it is let and the costs, and published numbers are often marketing. Work out your own net figure from real rents and real costs.
Gross or net yield?
Gross yield uses rent over price and ignores costs. Net yield subtracts the costs, vacancy and tax. Only the net figure tells you what you keep, so use it to compare homes and plans.
Why not give yields by city?
We found no official, current series we could stand behind, and agent figures are often optimistic. The page on cities explains what to ask locally instead and how to compare areas with a method rather than a number.
Sources
- Agencia Tributaria: Rental income of non-residents: specific questions on property (official source, opens in a new window), Rates, gross base, deductible expenses, imputed income for unlet monthsLast checked 17 October 2026
General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.