Rental Yield on a €400,000 Property in Spain (2026)
A €400,000 flat renting for €1,835 a month is a 5.5% gross yield, about 3.7% net after costs and tax for a resident in Madrid. To reach 6% gross you need €2,000 a month.
Assumes a 2026 resale flat in Madrid bought without a mortgage, IBI of €960 a year, a €100 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
3.7%
after costs and tax, year 1
Gross yield
5.5%
€1,835 a month, €22,020 a year
Cash flow a month
€1,347
after costs and tax, no mortgage
Rent needed on a €400,000 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% | €1,335 | €16,020 | 2.7% | 2.6% | 1.9% |
| 5% | €1,665 | €19,980 | 3.4% | 3.3% | 2.6% |
| 6% | €2,000 | €24,000 | 4.1% | 4.0% | 3.2% |
| 7% | €2,335 | €28,020 | 4.8% | 4.7% | 3.8% |
| 8% | €2,665 | €31,980 | 5.5% | 5.3% | 4.4% |
| Item | Per year |
|---|---|
| Rent after 5% vacancy, minus running costs | €17,413 |
| Rental tax, Spanish resident | −€1,251 |
| Rental tax, EU/EEA non-resident (19%) | −€1,585 |
| Rental tax, non-EU non-resident (24% on gross rent) | −€5,021 |
| Net yield: resident / EU/EEA / non-EU | 3.7% / 3.7% / 2.9% |
| Purchase tax (ITP, Madrid) | €24,000 |
| Closing costs (2%) | €8,000 |
| Total invested | €432,000 |
| IRR over 30 years, incl. sale | 5.5% |
€400,000 property in every region
Net yield for a resident at €1,835 a month, best first. Madrid is highlighted. Only the purchase tax changes.
| Region | Purchase tax | Total invested | Net yield | Versus Madrid |
|---|---|---|---|---|
| Ceuta | €12,000 | €420,000 | 3.84% | +0.10 pp |
| Melilla | €12,000 | €420,000 | 3.84% | +0.10 pp |
| Basque Country | €16,000 | €424,000 | 3.81% | +0.06 pp |
| Madrid | €24,000 | €432,000 | 3.74% | reference |
| Navarre | €24,000 | €432,000 | 3.74% | +0.00 pp |
| Canary Islands | €26,000 | €434,000 | 3.73% | −0.02 pp |
| Andalusia | €28,000 | €436,000 | 3.71% | −0.03 pp |
| La Rioja | €28,000 | €436,000 | 3.71% | −0.03 pp |
| Cantabria | €30,000 | €438,000 | 3.69% | −0.05 pp |
| Murcia | €31,000 | €439,000 | 3.69% | −0.05 pp |
| Aragon | €32,000 | €440,000 | 3.68% | −0.06 pp |
| Balearic Islands | €32,000 | €440,000 | 3.68% | −0.06 pp |
| Galicia | €32,000 | €440,000 | 3.68% | −0.06 pp |
| Extremadura | €32,800 | €440,800 | 3.67% | −0.07 pp |
| Asturias | €33,000 | €441,000 | 3.67% | −0.07 pp |
| Castilla and Leon | €35,000 | €443,000 | 3.66% | −0.09 pp |
| Castilla-La Mancha | €36,000 | €444,000 | 3.65% | −0.09 pp |
| Valencian Community | €36,000 | €444,000 | 3.65% | −0.09 pp |
| Catalonia | €40,000 | €448,000 | 3.62% | −0.12 pp |
Frequently Asked Questions
What rent do I need for a good yield on a €400,000 property?
Annual rent = price × target gross yield. On €400,000: 4% needs €1,335 a month; 5% needs €1,665 a month; 6% needs €2,000 a month; 7% needs €2,335 a month; 8% needs €2,665 a month. Net yield is lower because of vacancy, IBI, community fees, insurance, maintenance and tax.
What is the net rental yield on a €400,000 property in Spain?
At €1,835 a month (5.5% gross) the net yield is 3.7% for a Spanish resident, 3.7% for an EU/EEA non-resident and 2.9% for a non-resident outside the EU/EEA, who is taxed on gross rent. The figures assume a Madrid resale flat, IBI of €960 a year, a community fee of €100 a month, 5% vacancy and 5% maintenance, with no mortgage.
How much cash do I need to buy a €400,000 property in Spain?
In Madrid, €24,000 of ITP and about €8,000 of closing costs bring the total to €432,000. Across the mainland regions the total ranges from €424,000 in Basque Country to €448,000 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 3.7% net on €400,000, 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.