Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
If you're thinking about buying a rental property in Spain, one of the first questions is: what kind of return can I expect?
This blog post breaks down rental yields in Spain in January 2026, covering gross and net returns, the best neighborhoods, and the costs that eat into your profits.
We update this article regularly.
And if you're planning to buy, you may want to download our pack covering the real estate market in Spain.
Insights
- Spain's average gross yield is around 6.7% in January 2026, but there's a 5 percentage point gap between Madrid's priciest districts and its commuter belt.
- Net yields drop to roughly 4.2% after community fees, maintenance, and management costs.
- In high-demand areas like Leganés and Getafe, listings attract over 100 inquiries and fill within two to three weeks.
- Studios and one-beds deliver the highest gross yields due to stronger rent per square meter.
- Barcelona's La Sagrera and Málaga's Metro Line 2 extension should push nearby rents up 5% to 15%.
- Spain's rent reference index caps rent increases on existing contracts, so growth is faster at turnover.
- Prime areas like Salamanca or Sarrià-Sant Gervasi compress yields to 3.5% to 5%.
- Full-service management costs 8% to 12% of rent, plus half to one month's rent per new tenant.
What are the rental yields in Spain as of 2026?
What's the average gross rental yield in Spain as of 2026?
As of early 2026, the average gross rental yield in Spain is around 6.7%, meaning a typical home generates roughly €6,700 per year for every €100,000 you pay.
Most properties fall within 6.2% to 7.3%, depending on city, neighborhood, and property type, which sits above the broader European average, making Spain attractive compared to France or Germany.
The biggest factor pushing yields is the gap between property price growth and rent growth, and in many cities prices have been outpacing rents.
What's the average net rental yield in Spain as of 2026?
As of early 2026, the average net rental yield in Spain (before mortgage and income tax) is around 4.2%, about 2.5 percentage points below gross.
The expense hitting landlords hardest is property management and leasing fees (10% to 15% of annual rent), followed by community fees common in apartments.
Most properties deliver net yields between 3.7% and 4.8%, depending on how well you control maintenance and vacancy.
You will find detailed rent ranges in our property pack covering the real estate market in Spain.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Spain in 2026?
Local investors consider 6.5% gross or higher "good," while above 7.5% is excellent.
Below 6.5%, net returns after costs look uncomfortably close to bond yields.
How much do yields vary by neighborhood in Spain as of 2026?
As of early 2026, gross yields vary by roughly 5 percentage points, from about 3.5% in premium areas to over 8% in working-class commuter zones.
Highest yields appear in areas like Usera, Carabanchel, and Puente de Vallecas (Madrid) or Nou Barris and Sant Andreu (Barcelona), where prices are affordable but demand stays strong.
Lowest yields are in Salamanca, Chamberí, Retiro (Madrid) or Sarrià-Sant Gervasi, Eixample (Barcelona), where property values have climbed faster than rents.
We've written about the best areas to invest in property in Spain.
How much do yields vary by property type in Spain as of 2026?
As of early 2026, gross yields range from roughly 5% for villas up to 7.5%+ for studios and one-beds, a spread of about 2.5 percentage points.
Studios and one-beds deliver the highest yields because they command stronger rent per square meter and attract a large tenant pool; villas produce lower yields due to high prices and heavier maintenance.
You might want to read: What rental yields can you expect for a house in Spain?
What's the typical vacancy rate in Spain as of 2026?
As of early 2026, budget for a vacancy buffer of 4% to 6% of annual rent (two to four weeks empty per year).
Vacancy ranges from 2% to 3% in central Madrid/Barcelona up to 7% to 10% in weaker-demand areas; Spain's market is tighter than the European average, with some cities seeing 100+ inquiries per listing.
You will have all indicators in our property pack covering the real estate market in Spain.
What's the rent-to-price ratio in Spain as of 2026?
As of early 2026, the average rent-to-price ratio is approximately 0.56% per month; above 0.55% monthly (6.5% annually) is considered favorable.
Spain's ratio compares well to France, Germany, or the Netherlands, where ratios often run 0.3% to 0.4% monthly.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Spain give the best yields as of 2026?
Where are the highest-yield areas in Spain as of 2026?
As of early 2026, highest-yield areas are working-class commuter zones: Usera, Carabanchel, Puente de Vallecas (Madrid), Nou Barris, Sant Andreu (Barcelona), and Benicalap, Patraix (Valencia).
These areas yield 7% to 8.5% gross because prices are affordable while demand stays strong due to good transport links.
Detailed analysis in our property pack covering the real estate market in Spain.
Where are the lowest-yield areas in Spain as of 2026?
As of early 2026, lowest-yield areas are Salamanca, Chamberí, Retiro (Madrid), Sarrià-Sant Gervasi, Eixample (Barcelona), and premium Balearic Islands pockets.
These yield just 3.5% to 5% gross because prices have surged faster than rents.
Buying in low-yield areas is covered in our risks and pitfalls in Spain.
Which areas have the lowest vacancy in Spain as of 2026?
As of early 2026, lowest vacancy areas are Centro, Arganzuela, Tetuán (Madrid), Eixample, Sant Martí (Barcelona), and the Balearic Islands.
Vacancy runs just 2% to 4% (one to two weeks between tenants) due to strong employment access and housing shortages; the trade-off is lower yields since high demand also pushes prices up.
Which areas have the most renter demand in Spain right now?
Strongest demand is in Madrid's commuter belt (Leganés, Móstoles, Getafe), Barcelona metro (L'Hospitalet, Terrassa), and Málaga where migration has intensified pressure.
Typical renters are young professionals or families seeking affordable housing near employment; listings receive 100+ inquiries and fill within two to three weeks.
Read our complete guide on how to buy and rent out in Spain.
Which upcoming projects could boost rents and rental yields in Spain as of 2026?
As of early 2026, top projects are Barcelona's La Sagrera station, Málaga's Metro Line 2 extension, and Madrid Nuevo Norte (Chamartín/Las Tablas).
Benefiting neighborhoods: Sant Andreu, La Sagrera (Barcelona), Bailén-Miraflores (Málaga), Chamartín, Fuencarral-El Pardo (Madrid); expect 5% to 15% rent increases once completed.
Our latest Spain property market analysis is here.
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What property type should I buy for renting in Spain as of 2026?
Between studios and larger units in Spain, which performs best in 2026?
As of early 2026, studios and one-beds outperform larger units in yield and occupancy, thanks to stronger rent per square meter.
Studios yield around 7% to 8% gross (€7,000 to €8,000 per €100,000, or $7,300 to $8,300 USD), while two-to-three-beds yield 5.5% to 6.5%; larger units can be better if targeting families who stay longer.
What property types are in most demand in Spain as of 2026?
As of early 2026, one-to-two-bedroom apartments are most in-demand, attracting the widest tenant range from young professionals to small families.
Top three by demand: one-to-two-bed apartments, two-to-three-bed apartments, then suburban townhouses; large detached villas in poorly connected areas underperform.
What unit size has the best yield per m² in Spain as of 2026?
As of early 2026, units between 30 and 60 square meters deliver the best yield per m², achieving €120 to €160 annually (roughly $125 to $165 USD), compared to €80 to €110 for larger units.
We also cover whether Airbnb is profitable in Spain.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Spain as of 2026?
What are typical property taxes and recurring local fees in Spain as of 2026?
As of early 2026, annual property tax (IBI) ranges from €400 to €1,200 ($420 to $1,260 USD); add waste fees (€50 to €150/year) and community fees (€600 to €1,800/year for apartments with amenities).
Together, these represent 8% to 15% of gross rental income. We cover all hidden fees in our Spain property pack.
What insurance, maintenance, and annual repair costs should landlords budget in Spain right now?
Annual insurance costs €150 to €400 ($160 to $420 USD); maintenance runs 0.6% to 1.0% of property value (€900 to €1,500 for a €150,000 apartment).
The most common surprise expense is plumbing or boiler failures in older buildings; total annual budget should be €1,200 to €2,000 ($1,260 to $2,100 USD).
Which utilities do landlords typically pay, and what do they cost in Spain right now?
Landlords typically pay community fees and IBI; tenants cover electricity, gas, water, and internet.
For "all-inclusive" rentals, expect €80 to €150/month ($85 to $160 USD) in landlord-paid utilities.
What does full-service property management cost, including leasing, in Spain as of 2026?
As of early 2026, management costs 8% to 12% of monthly rent (€80 to €120 for a €1,000/month property); leasing fees run half to one month's rent per new tenant (€500 to €1,000).
What's a realistic vacancy buffer in Spain as of 2026?
As of early 2026, set aside around 5% of annual rental income (two to three weeks vacancy); tightest markets see one to two weeks, slower areas four to six weeks.
Buying real estate in Canary Islands can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
We rely on strong methodology in our blog articles and our Spain property pack. Below are our sources.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Banco de España - Rental Market | Spain's central bank research. | We validated yield assumptions against structural trends. |
| Banco de España - Housing Market | Central bank housing analysis. | We framed price dynamics for yield calculations. |
| INE - House Price Index | Official national statistics. | We grounded price momentum data. |
| INE - Rent Reference Index | Official rent update index. | We explained contract repricing rules. |
| MIVAU - Observatorio | Housing ministry statistics hub. | We triangulated market activity. |
| MIVAU - SERPAVI 2025 | Government rent benchmark. | We cross-checked rent levels geographically. |
| BOE - Rent Index Resolution | Official legal gazette. | We grounded regulatory content. |
| idealista - Yield Data Q3 2025 | Largest portal, disclosed methodology. | Primary gross yield signal. |
| idealista - Rent Reports | Long-running dataset. | We supported rent levels by city. |
| Agencia Tributaria | Tax authority guidance. | We kept cost discussions accurate. |
| BBVA Research | Major research house. | We contextualized demand drivers. |
| CBRE Spain | Global consultancy. | Professional yield cross-check. |
| Observatorio del Alquiler | University-backed observatory. | We used vacancy and demand proxies. |
| Ajuntament de Barcelona | City government. | La Sagrera project details. |
| Junta de Andalucía | Regional government. | Málaga Metro extension details. |
| Cinco Días | Spanish financial newspaper. | Net yield and cost validation. |
| Cadena SER - Demand | Major radio network. | Time-to-rent and demand metrics. |
| Cadena SER - Madrid Rankings | Demand reporting. | High-demand municipalities. |
| Cinco Días - Madrid Nuevo Norte | Financial press. | Project details and timing. |
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