Rental yield in Valencia: gross vs net, and how to work it out
Last updated: 26 September 2026
In the typical scenario below, a flat with a gross yield of 7.8% on its price leaves its owner a net yield of about 3.5%. Neither number is wrong; they measure different things. This guide explains the rental yield Valencia owners and buyers should work out for themselves, with purchase costs, running costs, mid-term against long-term, and a worked example. It is general information, not investment advice.
Gross yield and net yield
Gross yield is a year's rent divided by what the flat cost, and net yield is the same sum after the costs of owning and letting the flat have been taken off.
Gross yield = annual rent ÷ purchase price × 100
Net yield = (rent actually received − running costs) ÷ total investment × 100
Gross yield is often quoted on the purchase price alone, and sometimes on the total investment: the price plus transfer tax, notary, Land Registry and legal fees, and any furnishing or renovation. The second figure is lower, so say which one you mean and compare like with like.
Net yield is normally worked out on the total investment, the money you have put in, and before income tax, since tax depends on the owner rather than the flat.
What a published yield figure measures
A published yield figure is only useful next to your own if you know how it was calculated.
The portal idealista compares asking rents with asking sale prices, and put the gross yield on buying a home to let in Spain at 6.5% in the second quarter of 2026 (idealista, 6 July 2026). The Banco de España's gross rental yield indicator, calculated differently, stood at 2.9% for the same quarter (Banco de España, real estate market indicators, September 2026). Both are national and gross: background, not the figure for your flat.
What buying costs: the total investment
For a resale flat in Valencia, the largest purchase cost after the price is transfer tax (ITP): 9% since 1 June 2026, and 11% where the value is above EUR 1 million.
ITP is charged on the Catastro reference value of the flat, or on the price if that is higher. Reduced rates exist for specific cases, mostly a buyer's own main home, so ask a lawyer whether one applies. A new-build flat bought from the developer pays VAT (IVA) at 10% instead, plus stamp duty (AJD), 1.4% in the Comunitat Valenciana for a flat bought to let.
Notary and Land Registry fees follow official scales set by royal decree and rise with the value of the flat. Add legal fees and, for a mid-term let, furnishing.
Within the Globexs group, Bluekey Homes handles property search for foreign buyers in Valencia, and TN Lawyers, a Valencia real estate law firm led by Tiscar Navarro, handles the legal side of the purchase.
The running costs of a let flat in Valencia
The running costs of a let flat in Valencia are the fixed costs of owning it, the costs that come with each tenancy, and the rent lost while it stands empty.
Cost line | What it covers | Mid-term let | Long-term let |
|---|---|---|---|
IBI and local charges | Annual municipal property tax on the cadastral value; local waste fees where they apply | Owner | Owner |
Community fees | Shared building costs: cleaning, lift, lighting, repairs | Owner | Owner |
Home insurance | Building and contents cover for a let flat | Owner | Owner |
Maintenance reserve | Boiler, air conditioning, plumbing, locks, paint | Owner | Owner |
Utilities and wifi | Electricity, water, gas, internet | Usually the owner, built into the rent | Usually the tenant |
Cleaning between tenancies | Clean and inventory check at each changeover | Several times a year | When a tenant leaves |
Furniture replacement | Mattresses, sofas, kitchenware, appliances | Regular | Little, if unfurnished |
Management fee | Tenants, rent, repairs, cleaning, reporting | Monthly | Monthly |
Empty weeks | Rent lost between tenants | A few weeks a year when well managed | Rare, but can be long |
Income tax | Spanish tax on the rent | Owner | Owner |
Easy to miss: in a mid-term let the owner pays utilities in empty weeks too, and furniture wears by tenancy, not by year.
Income tax on rental income
Rent from a Valencia flat is taxed in Spain whether the owner lives in Spain or abroad, so the return you keep is net yield after tax.
Non-resident owners declare the rent on Modelo 210, and depending on where they live, the tax is charged on the rent after expenses or on the gross rent. Owners resident in Spain declare it on their annual income tax return. The Modelo 210 guide covers rates, deductible costs and deadlines, and Nestor provides introductions to vetted tax advisors.
Mid-term or long-term: the effect on net yield
A mid-term let usually has the higher gross yield and the higher running costs, so the gap to a long-term let is narrower on net yield than on gross.
A mid-term tenant, on a furnished contract of 1 to 11 months, pays more per month for furniture, utilities and flexibility. The owner pays for utilities and wifi, changeover cleans, furniture wear and empty weeks. A long-term let earns less per month and carries few turnover costs.
The biggest lever on mid-term net yield is empty time: in the typical scenario below, a single extra empty month takes net yield from 3.5% to 2.9%. End dates in strong months and the next tenant lined up early keep it short. Mid-term or long-term let compares the two models in detail.
A worked example: typical scenario
In this typical scenario, a resale flat bought for EUR 200,000 and let mid-term at EUR 1,300 a month has a gross yield of 7.8% on the price and a net yield of about 3.5% on the total investment, before income tax. All figures are round and illustrative, not market data.
Total investment | EUR |
|---|---|
Purchase price | 200,000 |
ITP at 9% | 18,000 |
Notary, Land Registry, legal and other fees (estimate) | 4,000 |
Furnishing for a mid-term let | 8,000 |
Total investment | 230,000 |
Year one | EUR |
|---|---|
Rent for 12 months at EUR 1,300 | 15,600 |
Rent actually received, 11 months let | 14,300 |
IBI and local charges | 400 |
Community fees | 840 |
Home insurance | 250 |
Maintenance reserve | 600 |
Utilities and wifi, 12 months | 1,440 |
Cleaning, 3 changeovers | 450 |
Furniture replacement reserve | 500 |
Management fee (illustrative) | 1,800 |
Running costs | 6,280 |
Net income before tax | 8,020 |
Gross yield on price: EUR 15,600 ÷ EUR 200,000 = 7.8%
Gross yield on total investment: EUR 15,600 ÷ EUR 230,000 = 6.8%
Net yield on total investment: EUR 8,020 ÷ EUR 230,000 = 3.5%
The management fee is an illustrative round figure, not a quote; the real fee comes from a written proposal for the specific flat. With a mortgage, interest is one more running cost, and the useful figure becomes the return on the cash you put in. A change in the flat's value is not part of yield.
How to work out the yield on your own flat
To work out the yield on a Valencia flat, start from the rent you can actually collect in a year, not the monthly asking rent multiplied by 12.
Add up the total investment: price, ITP or VAT and AJD, notary, Land Registry and legal fees, furnishing or renovation.
Multiply the monthly rent by the months the flat will realistically be let.
List a year of running costs from the table, using real documents such as the last IBI receipt and the community fee statement.
Subtract the costs, divide by the total investment, and use the same method for every flat you compare.
Work out the tax with an advisor.
Where Nestor and the Globexs group fit in
Nestor is a Valencia property management company in the Globexs group, and its monthly report covers the rent, cleaning, maintenance and repairs that shape net yield.
One team, one contract and one monthly report cover tenants, rent collection, cleaning, maintenance, repairs, renovations and legal support. The fee is a fixed monthly amount based on the property, the service scope and the number of units, so the management line in your sum is a known figure. Repairs above an agreed threshold are quoted and approved by you before work starts. Flats are listed on the major rental portals and on Globexs, the group's platform for furnished mid-term rentals to expats and professionals. The services page lists each service, and what a property manager actually does describes a normal month.
If you own a flat in Valencia or are about to buy one, send the address, the size and the current situation. You will get a written proposal with a fixed monthly fee, no visit required, no obligation. Request a management proposal
Frequently asked questions
What is the difference between gross and net rental yield?
Gross yield is a year's rent divided by the purchase price or the total investment. Net yield first takes off running costs such as IBI, community fees, insurance, maintenance, management and empty weeks, so it is closer to what you keep.
Should gross yield include purchase costs?
Both versions are used. The figure on the price alone is higher; the figure on total investment, including ITP and fees, reflects what you have actually spent.
What rental yield can I expect in Valencia?
It depends on the price, the location, the type of let and how well empty weeks are managed, so it has to be worked out flat by flat. As national background, idealista put gross yield in Spain at 6.5% in the second quarter of 2026, based on asking prices.
How much is transfer tax on a flat in Valencia?
For a resale flat, ITP in the Comunitat Valenciana is 9% since 1 June 2026, and 11% above EUR 1 million, charged on the Catastro reference value or the price, whichever is higher. A new-build flat from the developer pays 10% VAT plus 1.4% stamp duty (AJD) instead.
Is net yield calculated before or after income tax?
Usually before, because tax depends on the owner rather than the flat, so pre-tax figures compare more easily. Work out the after-tax figure with a tax advisor; non-resident owners declare Spanish rent on Modelo 210.
Does a mid-term let give a higher yield than a long-term let?
Usually a higher gross yield, because the monthly rent is higher. The gap narrows on net yield, because the owner pays utilities, changeover cleans, furniture wear and empty weeks. Keeping empty time short is the main lever.
How can Nestor help with the numbers?
Nestor's written proposal gives a fixed monthly fee to put into your calculation, and the monthly report then covers rent collection, cleaning, maintenance and repairs in one place. Nestor also provides introductions to vetted tax advisors, and the Globexs group includes Bluekey Homes for property search and TN Lawyers for legal assistance.
