Buy-to-let yield in Spain in 2026: how to do the numbers properly
Idealista puts gross yield at 6.5% and falling. Why that is not your real return and how to calculate it with a step-by-step example.
1 min read
Data and events refer to: July 2026.
According to Idealista, the gross yield from buying a home to let fell in Spain from 7.2% to 6.5% in a year, and stood at around 5.9% in Madrid city. Other portals give very different figures because they use other samples and calculations.
Gross is not net
Gross yield divides the asking annual rent by the asking price. It leaves out purchase taxes, renovation, community fees, property tax, insurance, empty periods and tax. What reaches your pocket is less.
An example
A €300,000 flat let at €1,400 a month, or €16,800 a year:
- Gross: 16,800 / 300,000 = 5.6%.
- Real investment with 6% transfer tax and other costs: about €322,000.
- Community, property tax, insurance and maintenance: about €3,000.
- Net before income tax: 13,800 / 322,000 = 4.3%.
These figures are illustrative: use your own.
What to add to your numbers
- Months without a tenant.
- Financing, if you have a mortgage.
- Income tax on the return.
- Rent limits if the area is declared stressed.
- What might happen to the home's price, without taking it for granted.
The practical conclusion
A lower yield in a big city can be reasonable for some investors, and a higher one may hide more risk. What matters is comparing with the same formula and real data for each property.
