SOBE Knowledge
Property Investment Calculator
Gross yield is the number that sells a property. Net yield is the number you live with. Enter your own figures and watch one become the other, line by line.
The property
Andalucía: 7% ITP plus notary, registry and legal fees.
Rental income
Weeks empty between tenants, as a share of the year.
Running costs
Long-term lets run 8–12%; short-term 20–30%.
Financing
Spanish banks: up to 80% for residents, 60–70% for non-residents.
How to read the result
The gap between gross and net yield is not a rounding error. On the Costa del Sol it is routinely a third of the income.
Enter a €500,000 apartment at €2,200 a month and the gross yield reads 5.3% — the figure most listings would quote. Subtract vacancy between tenants, community fees, IBI, insurance, maintenance and management, and the net yield on total capital invested lands near 3%. Nothing was hidden; the costs were simply never in the first number.
That is the whole purpose of the waterfall above: to show where the rent actually goes, rather than to produce an encouraging percentage. If a property still works after every cost is subtracted, it works.
Which mode to use
Buy-to-let
For income properties you intend to keep. It answers the practical questions: what does this actually yield after costs, does it cover its own mortgage (DSCR above 1.2 is what lenders want to see), and what lands in the account each month.
Flip / renovate
For value-add projects. The figure worth staring at is the break-even sale price — the number below which the whole exercise loses money. Spain's transaction costs make short holds unforgiving: buying and selling costs can consume a renovation's entire margin.
Hold & exit
For the full picture over years: rental cash plus mortgage amortisation plus whatever price change you assume, against the equity you put in. The appreciation slider starts at zero on purpose — move it and see how much of the result rests on an assumption rather than on the property.
What the calculator does not include
Income tax on rent (19% on net for EU/EEA non-residents, 24% on gross for others; progressive rates with a 50% reduction for resident long-term landlords), capital-gains tax and plusvalía on the sale. All three depend on your residence and personal circumstances, which a calculator cannot know and should not guess.
Treat the outputs as pre-tax. For the acquisition side, our purchase tax calculator gives the exact figure for your case; for the loan, the mortgage calculator.
Frequently asked questions
What is a realistic net rental yield in Marbella?
It depends far more on the community than on the district. Long-term lets across the Costa del Sol commonly show 4–6% gross; what survives to net depends on community fees, which range from under €150 a month in simple buildings to €500–1,500+ in full-service resorts. The calculator exists so you can test a real property rather than trust an average.
Why is my net yield so much lower than the gross figure I was quoted?
Because gross yield ignores vacancy, community fees, IBI, insurance, maintenance and management — and is usually calculated on the purchase price rather than on the total capital invested, which in Spain includes 9–14% in acquisition costs. Both differences push the same direction.
Should I include the mortgage in the yield?
No — net yield is measured before financing, so properties can be compared on their own merits. The effect of a mortgage shows up in cash-on-cash return and in monthly cash flow, both of which the calculator reports separately.
Why does the appreciation slider start at zero?
Because expected price growth is an assumption, not a fact, and a calculator that assumes it for you is selling something. Start at zero, see whether the property works on income alone, then decide what growth you are prepared to underwrite.
Are the results tax-adjusted?
No. All figures are pre-tax. Income tax, capital-gains tax and plusvalía depend on your residence and circumstances — worth modelling with an advisor before you commit.
Related
General information only — not financial, tax or legal advice, not a forecast, and not an offer. Results depend entirely on the assumptions you enter and are shown before tax. Rates, lending criteria and tax rules vary by circumstance and change over time; verify current rules with a qualified professional before making a decision.