Rental Yield on a €1,000,000 Property in Spain (2026)
A €1,000,000 flat renting for €4,585 a month is a 5.5% gross yield, about 3.9% net after costs and tax for a resident in Madrid. To reach 6% gross you need €5,000 a month.
Assumes a 2026 resale flat in Madrid bought without a mortgage, IBI of €2,400 a year, a €160 monthly community fee, 5% vacancy, 5% maintenance, 2% closing costs and a Spanish resident taxed at 30% on rent after the 50% reduction. Change any of it in the calculator.
Net yield, resident
3.9%
after costs and tax, year 1
Gross yield
5.5%
€4,585 a month, €55,020 a year
Cash flow a month
€3,474
after costs and tax, no mortgage
Rent needed on a €1,000,000 property
Monthly rent for each target gross yield and the net yield it leaves, by tax status. The 5.5% row is the Spanish average.
| Gross yield | Rent a month | Rent a year | Net, resident | Net, EU/EEA | Net, non-EU |
|---|---|---|---|---|---|
| 4% | €3,335 | €40,020 | 2.8% | 2.8% | 2.1% |
| 5% | €4,165 | €49,980 | 3.5% | 3.4% | 2.7% |
| 6% | €5,000 | €60,000 | 4.2% | 4.1% | 3.3% |
| 7% | €5,835 | €70,020 | 4.9% | 4.8% | 3.9% |
| 8% | €6,665 | €79,980 | 5.6% | 5.5% | 4.6% |
| Item | Per year |
|---|---|
| Rent after 5% vacancy, minus running costs | €45,036 |
| Rental tax, Spanish resident | −€3,353 |
| Rental tax, EU/EEA non-resident (19%) | −€4,248 |
| Rental tax, non-EU non-resident (24% on gross rent) | −€12,545 |
| Net yield: resident / EU/EEA / non-EU | 3.9% / 3.8% / 3.0% |
| Purchase tax (ITP, Madrid) | €60,000 |
| Closing costs (2%) | €20,000 |
| Total invested | €1,080,000 |
| IRR over 30 years, incl. sale | 5.6% |
€1,000,000 property in every region
Net yield for a resident at €4,585 a month, best first. Madrid is highlighted. Only the purchase tax changes.
| Region | Purchase tax | Total invested | Net yield | Versus Madrid |
|---|---|---|---|---|
| Ceuta | €30,000 | €1,050,000 | 3.96% | +0.10 pp |
| Melilla | €30,000 | €1,050,000 | 3.96% | +0.10 pp |
| Basque Country | €40,000 | €1,060,000 | 3.93% | +0.07 pp |
| Madrid | €60,000 | €1,080,000 | 3.86% | reference |
| Navarre | €60,000 | €1,080,000 | 3.86% | +0.00 pp |
| Canary Islands | €65,000 | €1,085,000 | 3.84% | −0.02 pp |
| Andalusia | €70,000 | €1,090,000 | 3.83% | −0.03 pp |
| La Rioja | €70,000 | €1,090,000 | 3.83% | −0.03 pp |
| Murcia | €77,500 | €1,097,500 | 3.80% | −0.06 pp |
| Galicia | €80,000 | €1,100,000 | 3.80% | −0.06 pp |
| Cantabria | €84,000 | €1,104,000 | 3.78% | −0.08 pp |
| Aragon | €89,500 | €1,109,500 | 3.77% | −0.09 pp |
| Balearic Islands | €90,000 | €1,110,000 | 3.76% | −0.10 pp |
| Castilla-La Mancha | €90,000 | €1,110,000 | 3.76% | −0.10 pp |
| Valencian Community | €90,000 | €1,110,000 | 3.76% | −0.10 pp |
| Asturias | €92,000 | €1,112,000 | 3.76% | −0.10 pp |
| Castilla and Leon | €95,000 | €1,115,000 | 3.75% | −0.11 pp |
| Extremadura | €96,800 | €1,116,800 | 3.74% | −0.12 pp |
| Catalonia | €105,000 | €1,125,000 | 3.72% | −0.14 pp |
Frequently Asked Questions
What rent do I need for a good yield on a €1,000,000 property?
Annual rent = price × target gross yield. On €1,000,000: 4% needs €3,335 a month; 5% needs €4,165 a month; 6% needs €5,000 a month; 7% needs €5,835 a month; 8% needs €6,665 a month. Net yield is lower because of vacancy, IBI, community fees, insurance, maintenance and tax.
What is the net rental yield on a €1,000,000 property in Spain?
At €4,585 a month (5.5% gross) the net yield is 3.9% for a Spanish resident, 3.8% for an EU/EEA non-resident and 3.0% for a non-resident outside the EU/EEA, who is taxed on gross rent. The figures assume a Madrid resale flat, IBI of €2,400 a year, a community fee of €160 a month, 5% vacancy and 5% maintenance, with no mortgage.
How much cash do I need to buy a €1,000,000 property in Spain?
In Madrid, €60,000 of ITP and about €20,000 of closing costs bring the total to €1,080,000. Across the mainland regions the total ranges from €1,060,000 in Basque Country to €1,125,000 in Catalonia, because the transfer tax differs by region.
Is a 5.5% gross yield good in Spain?
It is close to the national average gross yield of about 5.5% (Global Property Guide, Q3 2026). After costs and tax it is 3.9% net on €1,000,000, so compare flats on net yield, not on the headline figure in the listing.
Rental yield by purchase price
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Estimate based on 2026 rules: regional ITP tables, art. 23.2 LIRPF reduction, IRNR rates of 19% and 24%. Rent is rounded to €5. Not tax advice. Last tax data verification: October 2026.