SOBE Knowledge
Buy-to-Let Yield Calculator
Gross yield is the number that sells a property. Net yield is the number you live with. Enter a real price and rent, 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.
Two mechanics do most of the damage, and both are invisible in a listing. Gross yield is measured against the price; net yield here is measured against everything you actually spent — price plus 9–14% in acquisition costs plus renovation. And community fees in an amenity-rich resort can exceed everything else combined.
The numbers that decide it
Net yield
What the property earns after costs, against the capital it consumed. The only figure worth comparing across properties, because it is the only one that cannot be flattered by a service charge.
Cash-on-cash return
What your own money earns once a mortgage is in play. Financing lifts it above the raw yield when the loan rate sits below the asset's return — and drags it below when it does not.
DSCR
Net operating income divided by the mortgage. Above 1.2 is what a Spanish lender wants to see on an investment property; below 1.0 means the rent does not cover the loan and the gap comes from your pocket every month.
Frequently asked questions
What is a realistic net rental yield in Marbella?
It depends 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 euros a month in simple buildings to 500-1,500+ in full-service resorts.
Why is my net yield so much lower than the gross figure I was quoted?
Gross yield ignores vacancy, community fees, IBI, insurance, maintenance and management, and is usually calculated on the purchase price rather than on total capital invested, which in Spain includes 9-14% in acquisition costs. Both differences push the same direction.
Should the mortgage be included in rental yield?
No. Net yield is measured before financing so properties can be compared on their own merits. The effect of a mortgage appears in cash-on-cash return and monthly cash flow, which this calculator reports separately.
What vacancy rate should I assume?
For long-term lets on the coast, a few weeks between tenants is realistic. Short-term lets are a different exercise entirely: peak-season occupancy applied across the whole year is the classic first-time-investor error, because the shoulder months decide the year.
Are the results tax-adjusted?
No. All figures are pre-tax. Rental income is taxed at 19% on net for EU/EEA non-residents and 24% on gross for others; resident landlords letting long-term get a 50% reduction. Model it with an advisor.
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.