Spain Tool
Buy-to-Let ROI Calculator
Model Spain rental yield, net cash flow and total return. Includes IRPF mortgage interest treatment, IBI, management fees, vacancy and income tax.
BTL typically requires 25%+
Verdict
Weak
Based on ROI & cash flow
Gross Yield
5.60%
Net Yield
2.66%
On property value
Cash-on-Cash
-10.93%
Return on deposit
Annual Cash Flow
-€8,198
Monthly Cash Flow
-€683
Total ROI
-4.42%
Cash flow + principal paydown
Monthly Mortgage
€1,251
Annual Income & Cost Breakdown
Income
Gross rent (12 months)€16,800
Less vacancy (5%)-€840
Effective rental income€15,960
Costs
IBI (Band D)€2,171
Landlord insurance€900
Management fees€1,915
Maintenance reserve€3,000
Mortgage payments€15,007
Income tax (40%, net of S24 credit)€1,165
Net annual cash flow-€8,198
IRPF applied: Mortgage interest (€10,125) is not deductible from rental income — instead you receive a 20% tax credit (€2,025). This particularly hurts higher-rate taxpayers.
Long-Term Projection
Equity build-up and cash flow at 1, 5, 10 and 20 years.
| Year | Property Value | Annual Rent | Cash Flow | Cumulative Equity |
|---|---|---|---|---|
| Year 1 | €312,000 | €17,304 | -€8,198 | €92,615 |
| Year 5 | €364,996 | €19,476 | -€9,227 | €168,070 |
| Year 10 | €444,073 | €22,578 | -€10,697 | €275,222 |
| Year 20 | €657,337 | €30,343 | -€14,376 | €544,634 |
Spain BTL Tax Notes
IRPF removed the ability to deduct mortgage interest from rental income for individual landlords. Instead, a 20% basic-rate tax credit is applied. Higher and additional-rate taxpayers feel this most. Consider whether a limited company (SPV) structure may be more tax-efficient at scale.