Calculating rental yield on a Spanish new build requires more than dividing annual rent by purchase price. A realistic assessment must account for the full acquisition cost (including 10% IVA, stamp duty, notary, and legal fees), annual running costs, and the tax treatment of rental income. Start with gross yield: if a €180,000 apartment generates €12,000 in annual rental income, the gross yield is 6.7%. However, the total acquisition cost was closer to €202,000, bringing the adjusted gross yield down to 5.9%. This distinction matters when comparing Spanish property against other investment vehicles.
To reach net yield, deduct annual expenses: community fees (typically €600-€1,500 for apartments with communal pool), property tax or IBI (€300-€800 depending on municipality and cadastral value), home insurance (€200-€400), maintenance and repairs reserve (budget 1% of property value annually), and property management fees if using a rental agency (15-25% of rental income for holiday lets, 8-12% for long-term rentals). Non-resident owners also pay income tax on rental earnings at 19% for EU/EEA residents or 24% for others, calculated on gross rental income with limited deductible expenses. After all deductions, a property yielding 6% gross might deliver 3-4% net. Seasonal variation also plays a role: coastal properties near Alicante or Torrevieja may achieve 70-80% occupancy during peak months but drop to 30-40% in winter unless positioned for the long-stay retiree market.
For property-specific yield estimates using real listing data and local benchmarks, explore new builds on Avena Terminal. The platform provides pricing context that helps you build realistic rental projections. Visit Avena Terminal to start comparing properties with your investment criteria in mind.