Buy-to-let in Spain: a worked example with real numbers
By David Los · October 2026 · Investment
Buy-to-let in Spain in 2026 still works when you underwrite the whole ledger, not the gross yield on a portal headline. On October 2026 asking prices and May 2026 long-term rent indices, a typical two-bedroom apartment on the western Costa del Sol can show about 4.5% to 5.0% gross before purchase costs, void weeks and tax. After Andalucía's 7% transfer tax, notary and registry fees, and Spanish income tax at 19% on net rent for EU residents or 24% on gross rent for British and other non-EU landlords, net yield often lands near 1.5% to 2.5% on the same tenancy. This guide walks one La Duquesa example line by line and links to the town yield table, holiday-let rules and ownership tax guides that turn gross into a decision.
Can buy-to-let in Spain still stack up in 2026?
Yes, for patient landlords who buy apartments in towns with year-round tenants, model net yield after Spanish tax, and accept that appreciation and personal use may matter as much as monthly rent. Spain is not a high-coupon market like some UK northern cities: gross yields on the Costa del Sol long-term market cluster between about 3.6% and 5.0% on published asking prices, and purchase costs of roughly 10% plus the non-EU 24% gross-rent rule compress net returns. The opportunity is relative: Andalucía's 7% transfer tax, deep foreign demand and live inventory transparency beat many European coasts on total cost of entry. Start with our property investment guide for strategy; this page is the arithmetic.
What this example assumes (and what it ignores)
The model is a long-term unfurnished let to a resident tenant, not a tourist flat. Tourist income can gross more but needs a VUT registration, community permission and management fees that belong in a separate model (see our Andalucía holiday-let guide). Purchase side uses Hometailor's active Costa del Sol resale asking medians on 27 October 2026; rent side uses Fotocasa's long-term asking rent index for Manilva municipality in May 2026, the published match for the La Duquesa coast. We ignore mortgage interest, currency moves and capital gains on exit. Mortgage investors should add their bank's stress rate and the non-resident LTV caps from our non-resident mortgage guide.
La Duquesa active resale inventory: 140 listings, median asking €359,500 at €3,470/m²; coast-wide 7,794 listings median €650,000Source: Hometailor market data · October 2026 · View market data →
Step one: the purchase ledger on a 72 m² apartment
Take a 72 m² resale apartment priced at La Duquesa's October 2026 median per square metre: 72 × €3,470 = €249,840 in asking price. Andalucía charges a flat 7% transfer tax (ITP) on resales under Ley 5/2021, which is €17,489 on this price. Notary, land registry and an independent lawyer typically add another 1.5% to 2% on a mid-range purchase, which we round to €4,000 here for a conservative total. Furnishing for a long-term let might add €8,000 to €12,000 depending on condition; we include €10,000 so the capital base reflects a rent-ready flat.
| Line item | Amount | Notes |
|---|---|---|
| Asking price (72 m² × €3,470/m²) | €249,840 | Hometailor median €/m², Oct 2026 |
| Transfer tax (ITP 7%) | €17,489 | Andalucía resale rate |
| Notary, registry, legal | €4,000 | Indicative mid-range bundle |
| Furnishing and setup | €10,000 | Long-term let ready |
| Total capital in | €281,329 | Before voids and annual costs |
Andalucía applies a flat 7% transfer tax (ITP) on resale purchases under Ley 5/2021Source: BOE / Ley 5/2021 · October 2021 · View market data →
Step two: long-term rent and gross yield
Fotocasa's May 2026 Índice Inmobiliario puts Manilva long-term asking rent at €14.51 per square metre per month. On 72 m² that is about €1,045 per month, or €12,540 per year before voids or non-payment. Gross yield on the €249,840 asking price alone is €12,540 ÷ €249,840 ≈ 5.0%, matching the western-coast row in our Costa del Sol rental yields guide. If you underwrite on total capital in of €281,329, gross on invested cash is about 4.5%. Neither figure includes tax, IBI, community fees or a vacant month between tenants.
Long-term asking rent in Manilva municipality averaged €14.51/m² per month in May 2026Source: Fotocasa Índice Inmobiliario · May 2026 · View market data →
Step three: annual running costs before tax
Running costs vary by community and cadastral value, but a landlord budget on this flat should include the lines below. IBI (municipal property tax) on a sub-€300,000 apartment on this coast often falls in the €400 to €700 band depending on cadastral value; we use €550. Community fees for a sea-view apartment with pool and lifts commonly run €150 to €220 per month; we use €1,920 per year. Insurance, minor repairs and one void month of lost rent (€1,045) are included so the net figure is honest rather than optimistic.
| Annual cost | Amount | Notes |
|---|---|---|
| IBI (municipal tax) | €550 | Typical range on mid-value flats |
| Community and building | €1,920 | €160/month illustrative |
| Insurance and repairs | €450 | Landlord policy plus small fixes |
| Void month (1 of 12) | €1,045 | Lost rent between tenancies |
| Total before income tax | €3,965 | Deductible for EU landlords |
Step four: Spanish tax and net yield
Rental income is taxed in Spain even when you live abroad. EU and EEA residents generally pay 19% on net rent after allowable costs (community, IBI, insurance, interest and depreciation where applicable). On this example, net rent before tax is about €12,540 − €3,965 = €8,575, so income tax is roughly €1,629 and cash after tax near €6,946 on €281,329 capital, about 2.5% net. UK and other non-EU landlords pay 24% on gross rent with no deductions: €12,540 × 24% = €3,010 in tax, leaving €5,565 after operating costs and tax, about 2.0% net on the same tenancy. The spread is why we ask every buy-to-let client where they are tax resident before they fix a budget. Full rules and filing deadlines sit in our costs of owning property guide.
Non-resident rental income: EU and EEA owners generally pay 19% on net income after costs; other non-residents pay 24% on gross rent without deductionsSource: Agencia Tributaria · October 2026 · View market data →
| Landlord type | Tax base | Tax rate | Indicative tax | Net cash yield on €281k capital |
|---|---|---|---|---|
| EU / EEA resident | Net after costs (~€8,575) | 19% | ~€1,629 | ~2.5% |
| UK / non-EU resident | Gross rent (€12,540) | 24% | ~€3,010 | ~2.0% |
Buy-to-let checklist before you exchange
- Confirm the community statutes allow long-term lets and do not block change of use to tourist.
- Obtain an energy certificate before advertising, valid ten years on resale (RD 390/2021).
- Open a Spanish bank account and NIE before completion if you have not already.
- Budget one month of void rent and a contingency for tenant arrears; inquiokupas cases are civil evictions, not the 2025 okupa fast track.
- Compare the listing price to the town median on our price pages before you treat the yield table as yours.
- If you let while living abroad, read tenant-risk and okupa context before you hand over keys.
When the numbers work, browse western-coast stock on our La Duquesa listings, compare medians on the La Duquesa price page, follow the purchase sequence in how to buy property in Spain, and see our squatters and rental fraud guide if you manage the flat from abroad.
Written and reviewed by
Founder & Head of Research, Hometailor · Last reviewed: October 2026
Born and raised in Sweden, David has spent over a decade analysing property markets on the Costa del Sol and has guided hundreds of international buyers through Spanish purchases in English, Swedish and Polish. He writes and reviews all research content at Hometailor, and triangulates everything before it publishes: independent lawyers, agents inside and outside Hometailor, and the live market data behind this site.
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