See the real return on your next Spanish rental: gross, net and cash-on-cash. Full model with purchase costs, mortgage, IRPF and vacancy.
arrow_downward Jump to the calculatorThree metrics, three angles. You want to look at all three before making a call.
The headline ratio: annual rent divided by total investment (price plus purchase costs and renovation). It is what you will see in property ads and real-estate blogs. Useful for a first comparison, not enough to decide.
Example: a 200,000 € flat with 22,000 € of purchase costs, rented at 1,000 €/month. Gross yield = (1,000 × 12) / 222,000 = 5.40%.
Subtracts running rental costs (IBI, building fees, insurance, maintenance) and the expected vacancy. It is the real return before tax and mortgage. Usually 1.5 to 2.5 points below the gross figure.
Same flat: with 150 €/month of recurring expenses and 5% vacancy, net yield drops to 4.07%.
Only relevant if you finance part of the purchase. Measures the actual return on the money you put in (down payment + costs + works), after the mortgage payment and tax. The most important metric for a leveraged investor.
With a 160,000 € mortgage at 3.2% over 25 years, cash-on-cash on the 62,000 € of own capital can reach 8-10%, well above the net yield.
Many investors compute over the deed price only and skip the 10-12% of ITP, notary, registry and gestoría on top. On a 200,000 € investment, that adds 22,000 € to the base and drops the yield from 6% to 5.4%.
No flat is rented 12 months a year for its entire life. One month of tenant search every two years already represents 4% vacancy. For short-let, real vacancy is usually 25-40% depending on season and location.
The yield advertised is usually gross and before IRPF. For a resident in the 37% bracket, after applying the 60% reduction on primary-residence rentals, tax shaves another 1 to 1.5 points off the net yield. Non-residents don't get this reduction.
Average gross yields for residential long-term rentals, sourced from the main Spanish property portals and the Bank of Spain. Numbers vary by neighbourhood, treat them as a starting point, not as gospel.
| City | Gross yield |
|---|---|
| Madrid | 4.5 - 5.5% |
| Barcelona | 4.5 - 5.5% |
| Valencia | 6.0 - 7.5% |
| Seville | 6.0 - 7.0% |
| Bilbao | 5.0 - 6.0% |
| Secondary capitals | 6.5 - 8.5% |
Source: aggregated property portals + Banco de España Statistical Bulletin (2026). Refreshed quarterly.
A gross yield of 5-6% is the market average. Below 4% it becomes hard to cover expenses and IRPF. Above 7-8% in a capital usually signals additional risk (less established neighbourhood, higher vacancy, dated property).
Because net subtracts recurring expenses (IBI, building fees, insurance, maintenance) and vacancy. Typical gap is 1.5 to 2.5 points. If your net falls below 3% before tax, reconsider the investment.
Yes. If you mark "Spanish tax resident", we automatically apply the 60% reduction on positive net rental income (LIRPF Art. 23.2), valid only for long-term primary-residence leases. Not applied for non-residents, short-let or seasonal rentals.
Mortgage interest (not principal), IBI, building fees, insurance, repairs, owner-paid utilities, 3% amortization on the construction value of the building, and gestor or agency fees. Keep receipts for 4 years (Hacienda audit window).
Annual cashflow (net income minus mortgage payment minus IRPF) divided by own capital invested (down payment + purchase costs + renovation). If you buy cash, cash-on-cash equals after-tax net yield, the two converge.
As a rough proxy yes, but short-let needs adjustments: higher vacancy (25-40%), much higher management costs, no 60% reduction and VAT if you cross the threshold. Room-by-room also forces declaring as an economic activity if you provide hotel-like services.
Resale property pays ITP (6% to 10% depending on the autonomous community). New-build pays VAT at 10% plus AJD (1-1.5%). For new-build, bump "purchase costs" to 12-13%.
The calculator assumes a constant payment for simplicity. For variable, use the expected average rate over the next 5 years (forecast Euribor + spread). For mixed, model it as two phases: fixed during the agreed period, then variable for the rest.
No. All maths runs in your browser, nothing is sent to our servers. Close the tab and the data is gone. To keep month-by-month tracking, open a free imotrack beta account.
Not in this simple calculator, it handles one flat at a time. imotrack does: it manages your entire portfolio (residential, coliving, seasonal, vacation) with per-property and consolidated yields, IRPF and tax-ready export for your gestor.
This calculator handles one flat. imotrack handles your entire portfolio in real time, with a tax-ready export your gestor already knows how to use.
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