Tools › Rental yield calculator (Spain)
Rental yield calculator (Spain)
What a buy-to-let property in Spain really yields: gross and net yield, cash flow with a mortgage and the maximum price you can pay to reach your target yield.
The purchase
Rent and yearly costs
Mortgage (optional) and your target
Transfer tax (ITP) on resale homes by region (2026)
| Region | Standard rate | Note |
|---|---|---|
| Andalusia | 7% | |
| Aragon | 8% | rises in bands with the price, up to 10% |
| Asturias | 8% | rises in bands with the price, up to 10% |
| Balearic Islands | 8% | rises in bands with the price, up to 13% |
| Canary Islands | 6.5% | |
| Cantabria | 9% | |
| Castilla-La Mancha | 9% | |
| Castile and León | 8% | rises in bands with the price, up to 10% |
| Catalonia | 10% | in bands: 10% up to €600,000, 11% up to €900,000, 12% up to €1,500,000 and 13% above |
| Valencian Community | 9% | since 1 June 2026 (10% before) |
| Extremadura | 8% | rises in bands with the price, up to 11% |
| Galicia | 8% | |
| Madrid | 6% | |
| Murcia | 7.75% | |
| Navarre | 6% | |
| Basque Country | 4% | homes; 2.5% in some cases of a main residence (up to 120 m² or large families) |
| La Rioja | 7% | |
| Ceuta | 3% | 6% with a 50% rebate |
| Melilla | 3% | 6% with a 50% rebate |
2026 standard rates (Panorama de la Fiscalidad Autonómica y Foral 2026 and the Basque and Navarre tax offices), checked in October 2026. Many regions have reduced rates for young buyers, large families, people with disabilities or social housing: check your region's.
Rough estimate: not a valuation or investment advice. Before income tax, and without counting whether the property's price goes up or down.
And in the stock market?
The Spanish listed real estate companies we analyse (REITs and developers, 7) pay a median dividend yield of 6.6% a year. The MSCI World in euros has returned 13.0% a year over the last 10 years.
They are not the same: a property can't be sold in a day and its price can rise or fall; shares swing much more in the short term. Past returns, which do not guarantee future ones. See the stock analysis →
What it counts and what it doesn't
It counts what you pay to buy (price, transfer tax, notary, land registry, agency and renovation), what you collect and spend each year, and the mortgage if there is one. It does not count income tax on the rent, the municipal capital gains tax or taxes when you sell, or whether the property's price rises or falls. It is a rough estimate, not a valuation: market value depends on the area, the floor, the condition of the property and demand.
Frequently asked questions
How is the rental yield of a property worked out?
The gross yield is a year's rent divided by the price: €850 a month on a €180,000 property is 5.7%. The net yield takes off the costs (property tax, community fees, insurance, maintenance and empty months) and divides by everything you invest (price, transfer tax, notary, land registry and renovation): 3.6% in that example. Both are before income tax.
How much transfer tax (ITP) do you pay on a resale home in Spain in 2026?
It depends on the region. The standard rate goes from 6% in Madrid and Navarre to 10% in Catalonia, which rises in bands up to 13% for the most expensive homes; in the Basque Country homes pay 4%, and 3% in Ceuta and Melilla. Many regions have reduced rates (young buyers, large families, social housing). On a new build you pay VAT (10%) and stamp duty (AJD) instead of ITP.
Which costs are often forgotten?
Months without a tenant, repairs, insurance, community fees and property tax. In the example above, costs and one empty month take 28% of a year's rent.
What is the yield on your own cash?
If you buy with a mortgage: what is left each year after the payments, divided by the money you put in yourself (deposit, transfer tax, costs and renovation). A mortgage raises it if the property yields more than the loan costs and lowers it if the loan costs more; either way it adds risk.
What is the maximum price for a yield?
The price at which the property would give you the net yield you are looking for, with that rent and those costs. In the example, about €127,000 for 5% net. It is not a valuation: the market value depends on the area and the condition of the property.
Illustrative simulation with general information: not investment or tax advice.