How to realistically calculate the yield of your holiday apartment or property investment on the Costa del Sol – including formulas, practical examples and expert tips from Mike Naumann Immobilien.
WhatsAppWhether you are buying a property as an investment, for holiday rentals or for long-term letting in Spain, calculating the yield correctly is crucial for making the right investment decision.
On the Costa del Sol – especially in locations such as Marbella, Estepona, Málaga, Fuengirola or Torremolinos – yields can vary significantly. A solid calculation takes into account not only rental income, but also all costs, taxes and factors such as seasonal fluctuations.
With the expertise of Mike Naumann Immobilien, you can rely on realistic figures and avoid costly miscalculations.
Property yield can be calculated using the following simplified formula:
Yield (%) = (Annual net income ÷ Total investment cost) × 100
This formula applies to both long-term rentals and holiday apartments.
Assume you purchase a holiday apartment in Torremolinos for €420,000. Expected annual rental income: €30,000. Annual costs: €5,000. Purchase costs: 10% (€42,000).
This represents a realistic yield for high-quality holiday properties on the Costa del Sol.
Choose the category you are interested in:
A property in Estepona is rented on a long-term basis. Purchase price: €350,000. Expected annual net rent: €18,000. Annual costs: €4,000. Purchase costs: 10% (€35,000).
Long-term rentals generally offer lower yields, but provide greater stability.
A realistic calculation considers all costs – not just gross income.
Accurate yield calculation is the foundation of a successful property investment in Spain. With clear formulas, realistic examples and professional guidance from Mike Naumann Immobilien, you can identify the best investment opportunities on the Costa del Sol for your goals.
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