Rental Yield on a €120,000 Property in Spain (2026)
A €120,000 flat renting for €550 a month is a 5.5% gross yield, about 3.4% net after costs and tax for a resident in Madrid. To reach 6% gross you need €600 a month.
Assumes a 2026 resale flat in Madrid bought without a mortgage, IBI of €290 a year, a €55 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
3.4%
after costs and tax, year 1
Gross yield
5.5%
€550 a month, €6,600 a year
Cash flow a month
€367
after costs and tax, no mortgage
Rent needed on a €120,000 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% | €400 | €4,800 | 2.3% | 2.3% | 1.5% |
| 5% | €500 | €6,000 | 3.0% | 3.0% | 2.2% |
| 6% | €600 | €7,200 | 3.8% | 3.7% | 2.8% |
| 7% | €700 | €8,400 | 4.5% | 4.4% | 3.4% |
| 8% | €800 | €9,600 | 5.2% | 5.0% | 4.0% |
| Item | Per year |
|---|---|
| Rent after 5% vacancy, minus running costs | €4,706 |
| Rental tax, Spanish resident | −€298 |
| Rental tax, EU/EEA non-resident (19%) | −€377 |
| Rental tax, non-EU non-resident (24% on gross rent) | −€1,505 |
| Net yield: resident / EU/EEA / non-EU | 3.4% / 3.3% / 2.5% |
| Purchase tax (ITP, Madrid) | €7,200 |
| Closing costs (2%) | €2,400 |
| Total invested | €129,600 |
| IRR over 30 years, incl. sale | 5.3% |
€120,000 property in every region
Net yield for a resident at €550 a month, best first. Madrid is highlighted. Only the purchase tax changes.
| Region | Purchase tax | Total invested | Net yield | Versus Madrid |
|---|---|---|---|---|
| Ceuta | €3,600 | €126,000 | 3.49% | +0.09 pp |
| Melilla | €3,600 | €126,000 | 3.49% | +0.09 pp |
| Basque Country | €4,800 | €127,200 | 3.46% | +0.06 pp |
| Madrid | €7,200 | €129,600 | 3.40% | reference |
| Navarre | €7,200 | €129,600 | 3.40% | +0.00 pp |
| Canary Islands | €7,800 | €130,200 | 3.39% | −0.01 pp |
| Andalusia | €8,400 | €130,800 | 3.37% | −0.03 pp |
| Cantabria | €8,400 | €130,800 | 3.37% | −0.03 pp |
| La Rioja | €8,400 | €130,800 | 3.37% | −0.03 pp |
| Murcia | €9,300 | €131,700 | 3.35% | −0.05 pp |
| Aragon | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Asturias | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Balearic Islands | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Castilla and Leon | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Extremadura | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Galicia | €9,600 | €132,000 | 3.35% | −0.06 pp |
| Castilla-La Mancha | €10,800 | €133,200 | 3.32% | −0.08 pp |
| Valencian Community | €10,800 | €133,200 | 3.32% | −0.08 pp |
| Catalonia | €12,000 | €134,400 | 3.29% | −0.11 pp |
Frequently Asked Questions
What rent do I need for a good yield on a €120,000 property?
Annual rent = price × target gross yield. On €120,000: 4% needs €400 a month; 5% needs €500 a month; 6% needs €600 a month; 7% needs €700 a month; 8% needs €800 a month. Net yield is lower because of vacancy, IBI, community fees, insurance, maintenance and tax.
What is the net rental yield on a €120,000 property in Spain?
At €550 a month (5.5% gross) the net yield is 3.4% for a Spanish resident, 3.3% for an EU/EEA non-resident and 2.5% for a non-resident outside the EU/EEA, who is taxed on gross rent. The figures assume a Madrid resale flat, IBI of €290 a year, a community fee of €55 a month, 5% vacancy and 5% maintenance, with no mortgage.
How much cash do I need to buy a €120,000 property in Spain?
In Madrid, €7,200 of ITP and about €2,400 of closing costs bring the total to €129,600. Across the mainland regions the total ranges from €127,200 in Basque Country to €134,400 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 3.4% net on €120,000, 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.