How to calculate the real rental yield of your property in Spain and on the Costa del Sol – including real-life examples, differences between holiday and long-term rentals, and expert insights from Mike Naumann Immobilien.
WhatsAppRental yield is one of the most important key figures for property investors, whether for long-term rentals or holiday rentals. On the popular Costa del Sol (such as Fuengirola, Estepona, Málaga, Mijas or Torremolinos), achievable returns vary significantly depending on location, property type and rental strategy.
A correct calculation provides transparency regarding income, costs and the actual financial performance of your investment. Mike Naumann Immobilien shows you how to calculate and interpret rental yield realistically.
Rental yield shows what percentage of your total investment is returned annually through rental income. The basic formula is:
Rental Yield (%) = (Annual Rental Income ÷ Total Investment) × 100
Only by considering all cost factors can you achieve a realistic yield suitable for investment decisions.
An apartment in the centre of Málaga city is rented long-term:
Total investment: €423,000 Rental yield: (22,000 ÷ 423,000) × 100 ≈ 5.2%
This represents a realistic yield for solid long-term rentals in prime city locations.
Choose the property type that suits you:
A holiday apartment in Fuengirola generates:
Net annual income: €30,000 Total investment: €495,000 Rental yield: (30,000 ÷ 495,000) × 100 ≈ 6.06%
Holiday rentals can achieve higher yields in strong tourist locations but involve seasonal fluctuations.
Proper evaluation of these factors makes the difference between an average and an above-average return.
A realistic rental yield calculation is essential for any property investment in Spain. With proven formulas, practical examples and professional support from Mike Naumann Immobilien, you can identify profitable investment opportunities on the Costa del Sol – for both long-term and holiday rentals.
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