Knowledge pillar
Rental yields in Spain for international investors
Rental yield is the yearly rent as a percentage of what you paid. Net yield — after costs and tax — is what matters, and it depends on management costs, community fees, IBI, non-resident income tax (19% on net income for EU/EEA residents, 24% on gross income for others) and, for holiday lets, whether a tourist licence is allowed. The yield figures shown on our destination pages are our own estimates, not official data.
Gross vs net yield
Gross yield = yearly rent ÷ total purchase cost × 100. Net yield subtracts running costs first: community fees, IBI, insurance, maintenance, management or agency fees, empty periods and tax. Holiday lets usually have higher gross rent but much higher costs and empty weeks than long-term lets.
- •Example: €18,000 rent on a €400,000 total cost = 4.5% gross
- •Subtract €5,000 of costs = €13,000, or 3.25% before tax
- •Use purchase price plus buying costs, not price alone
Costa del Sol: what to check
Andalucía requires holiday homes to be registered in the regional tourism register, and some municipalities, including Málaga city, have restricted new holiday-let registrations in parts of the city. Check the town's current rules before relying on holiday rental income. Our destination pages show estimated yields for each town.
Costa Blanca: what to check
The Valencian Community requires tourist homes to be registered and tightened its rules in 2024. Some towns have added their own limits. Confirm with the town hall that a holiday licence is possible for the specific property before buying for rental income.
Mallorca: strict licensing
The Balearics have one of Spain's strictest holiday-let regimes. New tourist-rental places are heavily limited, and in Palma holiday lets in apartment blocks are not permitted. Only buy for holiday rental if the property already has a valid licence that can legally continue under a new owner — check this with a lawyer.
Ibiza: seasonality and licences
Ibiza's rental income is concentrated in the summer months, and illegal holiday letting is actively fined. As in Mallorca, only count on holiday rental income if the property holds a valid, transferable licence.
Tax on rental income for non-residents
Non-residents pay Non-Resident Income Tax (IRNR) on Spanish rent, filed on form 210. Residents of the EU, Iceland and Norway pay 19% and can deduct related expenses such as IBI, community fees, insurance, repairs and depreciation. Residents of other countries pay 24% on gross rent with no deductions. Since 3 April 2025, new holiday lets in apartment buildings also need approval from three-fifths of the owners' community.
Frequently asked questions
What is a good rental yield in Spain?
There is no official benchmark. What matters is net yield after costs, tax and empty periods, compared with your alternatives. Work out net yield for the specific property, and treat any published average — including ours — as an estimate.
Can I short-let my property in Mallorca?
Only with a valid tourist licence, and new licences are very limited. In Palma, holiday lets in apartment blocks are not allowed. Check the licence status with a lawyer before buying.