Spain Rental Yield Calculator 2026
Net rental yield after tax, gross yield, cash-on-cash, IRR and monthly cash flow — for residents and non-residents, with Spanish purchase, rental and sale taxes.
Purchase
Rent & costs
Rent and expense growth start in year 2, so the year-1 yields and monthly cash flow stay the same. They move the IRR, profit when sold, the chart and the year-by-year table.
Financing
Taxes
Exit
Net yield
—
after expenses & tax, year 1
Gross yield
—
rent ÷ price
Cash-on-cash
—
year 1, on cash invested
Cash flow / month
—
year 1, after tax
IRR
—
incl. sale
Cash needed up front
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—
Profit when sold
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Your position year by year
- Total net position (cash + property)—Cumulative net cash flow + net equity (value − mortgage).
- Total equity / asset value—Property value with yearly appreciation, minus the mortgage still owed.
- Cumulative net cash flow—Rent after costs, mortgage and tax, minus the cash you put in up front.
- Invested capital—Initial cash outlay + mortgage principal repaid to date.
Years since purchase. Tap or hover the chart to read a year.
Year-1 rental tax
| Item | Amount |
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Over 30 years
| Item | Amount |
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Year-by-year table
| Year | Rent | Expenses | NOI | Mortgage | Interest | Tax | Cash flow | Cumulative |
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Rental yield by purchase price
Which yield number should you use?
Gross yield (rent ÷ price) is what listings quote, so use it to compare ads. It ignores taxes, costs and vacancy, so it overstates what you keep. Net yield divides your rent after vacancy, running costs and income tax by everything you paid (price, purchase tax, closing costs, renovation), which makes it the fair number for comparing a flat in Madrid with one in Valencia. Cash-on-cash and IRR matter once you use a mortgage or plan to sell: they measure the return on the cash you actually put in, and IRR adds property value growth and the tax on the sale.
Two things move the result most in Spain: the purchase tax (ITP is 6% in Madrid but up to 10–11% in some regions) and your tax status. Residents pay IRPF after a reduction on long-term home lets; non-residents pay a flat 19% (EU/EEA, on net income) or 24% (elsewhere, on gross rent), so the same flat can net very different amounts to different owners.
Sources: BOE-A-2026-20823 (RDL 29/2026); art. 23.2 LIRPF; arts. 24.6 and 25 TRLIRNR; art. 14 RIRPF (RD 439/2007); AEAT guidance on rental amortization and on the capital gain on a sale; Audiencia Nacional 28.07.2025 (rec. 636/2021); savings scale 2026 (guiafiscal.es). Last tax data verification: October 2026. This calculator is an educational simulation and not tax or legal advice.
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Frequently Asked Questions
How is rental yield calculated?
Gross yield = annual rent ÷ purchase price. Net yield = (annual rent after vacancy − operating expenses − rental income tax) ÷ (purchase price + purchase taxes + closing costs + renovation). Cash-on-cash = first-year cash flow after mortgage ÷ cash you put in. IRR uses yearly cash flows plus the net sale proceeds at the end of the holding period. Example: €250,000 in Madrid at €1,200/month gives a 5.76% gross yield.
Which purchase taxes does the calculator use?
Resale: ITP at the regional rate (progressive in eight regions, e.g. Madrid 6%, so €15,000 on €250,000). New build: 10% IVA (7% IGIC in the Canary Islands) plus AJD stamp duty at the regional rate (e.g. 0.75% in Madrid). The rates are the same table as our Property Buying Cost Calculator.
How are rental profits taxed for residents?
Residents pay IRPF on net rental income: rent minus deductible expenses (IBI, community fees, insurance, repairs, management), mortgage interest and building amortization. Under art. 23.2 LIRPF a reduction applies to long-term residential lets: 50% in general, 60% for a property renovated in the last two years or leases signed before 26 May 2023, 70% or 90% in designated stressed housing zones when conditions are met. The calculator lets you pick the reduction (default 50%) and applies your marginal rate. Royal Decree-law 29/2026 (BOE-A-2026-20823, in force since 8 October 2026) introduces a new 15–100% scale that depends on how the new rent compares with the previous contract, the rent cap, the tenant's age and the zone. It must still be validated by the Cortes within 30 days and transitional rules apply to existing leases, so check the current position before relying on it. The calculator does not model the new scale: pick the reduction that fits your lease.
How are non-residents taxed on rental income?
Non-residents pay IRNR. If you live in the EU/EEA the rate is 19% on rent minus expenses, mortgage interest and amortization (art. 24.6 TRLIRNR), with no 50% reduction. If you live outside the EU/EEA the rate is 24% on gross rent with no deductions. The Audiencia Nacional (28 July 2025, rec. 636/2021) allowed deductions for non-EU owners, but the Supreme Court has admitted an appeal, so it is not final. Tick the checkbox to model the ruling as a best case.
How is the capital gain on sale taxed?
Residents pay on the 2026 savings scale: 19% up to €6,000, 21% to €50,000, 23% to €200,000, 27% to €300,000 and 30% above. Non-residents pay a flat 19% (art. 25.1.f TRLIRNR). The buyer also withholds 3% of the price for the tax office (modelo 211) as an advance payment; it is not an extra cost and you reclaim any excess in your return, so the calculator does not model it. Municipal plusvalía is not calculated: enter your own estimate in the Exit section.
How does amortization work?
The tax rules (art. 14 RIRPF) let you depreciate the building at 3% a year of the larger of the acquisition cost (price + taxes + costs) and the cadastral value, excluding land. The calculator uses (price + purchase taxes + closing costs) × the construction share, plus any renovation cost, and caps total amortization at that base. The construction share is the building part of the cadastral value on your IBI bill (default 70%). Amortization you used also reduces the cost basis when you sell, which raises the taxable gain.
How accurate are these results?
This is an educational model, not tax advice. It ignores regional deductions, local rules, treaty provisions and the detail of your personal tax return. Last tax data verification: October 2026.