How to read your result
Initial cash is the purchase price plus purchase tax, other taxes, fees, renovation and an unused reserve, less the mortgage. Gross yield uses twelve months of advertised rent divided by price. Collected rent then allows for vacancy. Operating income deducts management and operating costs. The yield after entered tax uses acquisition costs including setup, but excludes borrowing and the cash reserve. Cash-on-cash return uses first-year cash flow after debt service divided by the initial cash. The annual schedule separates mortgage payments and remaining debt, including loans paid off before the holding period ends. Total profit combines rental cash flow, net sale proceeds and the release of unused reserve, less the initial cash. The total return covers the whole period and is not an annual rate.
This is a constant-cost scenario, not a valuation or a tax return. No tax rate is inferred from nationality. Resident IRPF and non-resident IRNR differ. Taxable purchase value may differ from price. Annual costs can include IBI, community charges, insurance, repairs and utilities; do not repeat taxes or mortgage payments. A fixed nominal mortgage rate, monthly amortisation and end-of-year sale are assumed. Fees and compulsory insurance must be entered separately; the rate is not APR. Rent, operating costs and the annual tax budget remain constant. An unused cash reserve is recovered on exit; spending it requires updating costs. Final sale tax and withholding are reconciled once, assuming full credit of the advance and eventual settlement; refund timing is not forecast. Tourist rental permission, foreign taxes, currency changes, wealth taxes and tax on imputed income are not determined. Include any applicable amounts in your budgets. Negative cash flow requires additional funds. Return percentages are not annualised or inflation-adjusted.
Worked examples
- Illustration only: a €200,000 cash purchase, €200,000 tax base, an assumed 8% purchase tax, €4,000 fees, €10,000 renovation and €5,000 reserve needs €235,000 initial cash. The 8% is an example, not a regional tax recommendation.
- With €1,200 monthly rent, no vacancy, €2,000 annual operating costs and a €1,000 annual tax budget, annual cash flow is €11,400. After five years, selling for an assumed €250,000 with 5% sale costs and €5,000 final sale tax gives €59,500 total scenario profit. Other amounts are zero in this example.
Examples are illustrative. Read the assumptions and limitations before using a result.
Common questions
Are Spanish property taxes calculated automatically?
No. Enter the confirmed purchase tax base and applicable rate, any AJD amount, an annual ownership/income tax budget and final sale income tax. Citizenship is not a sufficient tax classification. This tool does not apply IRPF or IRNR deductions, regional reliefs or foreign tax credits.
Is withholding on a sale an additional tax?
The calculator treats your entered withholding as an advance against the final sale income tax you enter. It shows closing cash and later settlement separately, and deducts the final tax once in overall profit. Local sale taxes belong in other sale costs; confirm credit, refund eligibility and timing separately.