Spain's average gross rental yield is about 6.5%, but Madrid sits near 4.7% and Alicante near 7.8%. After tax, fees and vacancy, a net 2-4% of the outlay is the realistic range.
Rental yield in Spain averages about 6.5% gross, but that national number hides a wide spread and says little about what an owner keeps. In Idealista's data for the second quarter of 2026 (the latest we checked, as of October 2026), the big cities sit lower: Madrid about 4.7%, Barcelona about 5.2%, Málaga about 5.5% and Valencia about 6.3%, while smaller capitals such as Murcia and Lleida pass 7%. After tax, community fees, vacancy and management, a net return of roughly 2-4% of the total outlay is more realistic for most foreign buyers. This guide shows where the gap comes from.
Gross yield by city and region (Q2 2026)
Gross yield is the annual asking rent divided by the asking price, before any cost. Idealista's Q2 2026 figures and regional reports show:
- Madrid: about 4.7%. The most expensive rental market (about €23.7 per m² a month), but prices passed €6,000 per m², so the yield is low.
- Barcelona: about 5.2%.
- Málaga and the Costa del Sol: about 5.5% in the city; coastal towns vary widely.
- Valencia: about 6.3%.
- Alicante and the Costa Blanca: regional reports put Alicante near 7.8%, one of the higher figures for a popular coast.
- Balearic Islands: reports put the figure near 6.7%, but from a very high price base (about €5,200 per m² for used homes in the province).
- Canary Islands: prices are lower (roughly €2,650-2,760 per m² in Las Palmas and Santa Cruz de Tenerife). We did not find a reliable yield figure, so model each property separately.
These are asking prices and asking rents, not signed contracts. Yields have been drifting down because prices rise faster than rents: INE's housing price index was up 12.2% year on year in Q2 2026, while Idealista put national rents up about 4.2%.
Long-term let or tourist let
A tourist let can show a higher headline number in a resort, but it adds regional licences, higher running costs and regulatory risk. In May 2026 the Supreme Court annulled the part of the national rules that required a state registration number to advertise (sentence 620/2026), but regions can still require their own registration. Barcelona is phasing out its tourist licences by November 2028. Details by region are in our Spain short-term rental rules. For a first purchase, model the long-term rent and treat holiday income as upside.
What reduces the yield
- Property tax (IBI): set by each municipality between 0.4% and 1.1% of the cadastral value, which is usually below market value.
- Community fees: commonly €30-150 a month, more with a pool or lift.
- Waste tax, insurance and repairs: roughly €80-150 and about €250 a year for the first two, plus maintenance.
- Vacancy: one empty month already costs 8% of annual rent.
- Management: agencies commonly charge a share of rent; get the figure in writing.
- Purchase costs: roughly 10-13% on top of the price (see Spain property prices and buying costs).
Net yield: an illustration
Our own arithmetic, not market data. Take an apartment bought for €300,000 with a gross rent of €16,500 a year (5.5%), 11 months let and 10% management. Rent received is about €15,125. Running costs (IBI €600, community €1,200, waste and insurance €370, management €1,510, repairs €600) are about €4,280.
- Non-EU resident: 24% on the gross income with no deductions, about €3,630. Net about €7,200, or roughly 2.2% on an outlay of about €333,000 including purchase costs.
- EU or EEA resident: 19% on income after documented deductions, about €2,060. Net about €8,800, or roughly 2.6% on the same outlay.
A higher gross yield or a cheaper purchase lifts these numbers, but the order of magnitude is why 'net 2-4%' is a safer planning range than the headline gross figure.
Tax for non-resident landlords
EU and EEA residents pay 19% on net rental income after deducting costs such as IBI and community fees. Residents of non-EU countries, including the UK, pay 24% on gross rent with no deductions. A National Court ruling of 28 July 2025 may open a refund route for some non-EU owners; ask a tax adviser whether it applies to you. If you do not let the property, non-residents are taxed on an imputed income of 1.1% or 2% of the cadastral value, at the same 19% or 24%. Capital gains on a later sale are covered in Spain capital gains tax on sale.
Rules that changed for investors
The golden visa for property ended on 3 April 2025; applications filed earlier were processed (see Spain golden visa). A proposed tax of up to 100% on purchases by non-EU non-residents was presented in 2025 and, according to 2026 reports, stalled in parliament; it is a proposal, not law. Foreign buyers were about 16% of purchases in Q2 2026 (see foreigners buy a record 16% of Spanish homes).
FAQ
Which Spanish city has the best rental yield? On Idealista's Q2 2026 data, smaller capitals such as Murcia and Lleida lead (above 7%), and Alicante is high among popular coasts. Large cities like Madrid yield less but offer a deeper resale market.
Is a 7% yield in Spain realistic? As a gross asking-rent figure in some cities, yes. As a net return after tax and costs, rarely.
Do non-EU owners pay more tax? Yes: 24% on gross rent without deductions, against 19% on net income for EU and EEA residents.
Should I buy for tourist rental? Only with the regional licence confirmed in writing and a plan that also works on a long-term let.
How we help
We shortlist Spanish cities and properties to your goal, model net yield after tax, fees and vacancy for your residency status, and coordinate local lawyers and tax advisers. See also best areas to buy in Spain, investment risks and the Spain country page.
Informational only, not legal, tax or investment advice. Figures are indicative as of October 2026 and change; yields are not guaranteed.