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This article breaks down rental yields in Spain for 2026, covering gross and net returns, top neighborhoods, property types, and costs that eat into your profits.
We constantly update this blog post to reflect the latest market data in Spain's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Spain.
Insights
- Spain's average gross rental yield sits around 6.3% in early 2026, but the gap between prime Madrid districts like Salamanca (around 3%) and working-class areas like Carabanchel (up to 7%) spans roughly 4 percentage points.
- Smaller units consistently outperform larger ones on yield, with studios and one-bedrooms generating 1 to 2 percentage points more than family-sized units in the same neighborhood.
- Spain's rental vacancy rate in major metros hovers between 3% and 6%, meaning landlords typically lose only 1 to 3 weeks of rent per year.
- Net rental yield averages around 4.3% after property taxes, maintenance, insurance, and management fees, which together consume roughly 30% of gross rental income.
- Spain's rent-to-price ratio of approximately 6.7% places it favorably compared to many Western European capitals.
- Property management typically costs 8% to 12% of monthly rent, plus a tenant placement fee equivalent to about one month's rent.
- Neighborhoods near employment hubs like Barcelona's 22@ district or Madrid's Nuevo Norte development are seeing sustained tenant demand.
- Spain's official IRAV rent index now limits annual rent increases for existing tenants, creating a gap between new and long-term tenant rates.
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 across Spain's residential market is approximately 6.3%.
Most typical residential properties fall within a gross yield range of 5.5% to 7.0%, depending on city, neighborhood, and unit size.
This positions Spain favorably compared to Western European markets like Paris or Amsterdam, where gross yields often sit closer to 3% to 4%.
The key factor driving yields is the persistent mismatch between rental supply and tenant demand, keeping rents climbing faster than property prices in many metros.
What's the average net rental yield in Spain as of 2026?
As of early 2026, the average net rental yield in Spain is approximately 4.3%, representing what landlords keep after operating expenses but before financing.
The gap between gross and net yield runs about 2 percentage points, meaning roughly 30% of gross rent goes to operating costs.
Property tax (IBI) and community fees most significantly reduce gross yield, though management fees add substantially if you outsource.
Most investment properties deliver net yields between 3.5% and 5.0%, with the higher end achievable in working-class neighborhoods.
By the way, you will find much more 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?
In Spain in early 2026, a gross rental yield of 6% or higher is considered "good," while above 7% is excellent but often comes with higher management effort or location risk.
The threshold separating average from high performers sits around 6% gross, since the national baseline hovers near 6.3%.
How much do yields vary by neighborhood in Spain as of 2026?
As of early 2026, gross rental yields in Spain swing by 2 to 4 percentage points within the same city, from around 3% to 7% or more.
Highest yields come from working-class neighborhoods with strong demand but modest prices: Carabanchel or Usera in Madrid, Nou Barris or Sant Andreu in Barcelona, Benicalap in Valencia.
Lowest yields appear in prime districts: Barrio de Salamanca in Madrid, Sarrià-Sant Gervasi in Barcelona, and prime coastal Palma.
Yields vary because prime-area prices reflect lifestyle value and scarcity, which rents cannot match.
By the way, we've written a blog article detailing what are the current 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 approximately 3% for luxury villas in prime locations to 7.5% for compact studios in working-class neighborhoods.
Studios and one-bedrooms deliver the highest yields because they command higher rent per square meter while keeping purchase prices accessible.
Large homes and luxury villas deliver the lowest yields because high price tags rarely translate into proportionally higher rents.
Smaller units benefit from a larger pool of single renters and young professionals willing to pay premium rates per square meter.
By the way, you might want to read the following:
What's the typical vacancy rate in Spain as of 2026?
As of early 2026, rental vacancy in Spain's major metros sits between 3% and 6%, roughly 1 to 3 weeks of lost rent per year.
Vacancy ranges from 3% in high-demand urban cores to 10%+ in seasonal coastal markets or smaller cities.
The main driver is the supply shortage in employment centers, where renter demand consistently outstrips available units.
Spain's rental vacancy in prime metros is notably low, making it easy for landlords to fill units quickly.
Finally please note that you will have all the indicators you need 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, Spain's rent-to-price ratio sits at approximately 0.56% monthly (6.7% annually), from €14.7/m² rent against €2,639/m² purchase price.
Investors consider above 0.5% monthly (6% annually) favorable, as this directly translates to gross yield.
Spain compares well against Paris, Amsterdam, and Munich, where ratios are closer to 0.25% to 0.35% 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 neighborhoods include Carabanchel and Usera in Madrid, Nou Barris and Sant Andreu in Barcelona, and Benicalap in Valencia.
These areas typically deliver 6% to 7.5% gross yields, with micro-pockets in Puente de Vallecas or Ciudad Lineal occasionally higher.
They share a "working-class practical" profile, attracting employed renters who prioritize affordability and transit over prestige.
You'll find a much more detailed analysis of the areas with high profitability potential 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 neighborhoods are prime districts: Barrio de Salamanca and Chamberí in Madrid, Sarrià-Sant Gervasi in Barcelona, and prime Palma.
These areas typically deliver 3% to 4.5% gross yields, with some trophy streets dipping lower.
Yields compress because buyers pay premiums for prestige and lifestyle that rents cannot match.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Spain.
Which areas have the lowest vacancy in Spain as of 2026?
As of early 2026, lowest-vacancy neighborhoods include Tetuán and Ciudad Lineal in Madrid, Sant Martí and Sants-Montjuïc in Barcelona, and Camins al Grau in Valencia.
These areas see 2% to 4% vacancy, meaning one or two weeks empty per year between tenants.
The driver is proximity to employment zones, universities, and transit, attracting professionals and students.
The trade-off: strong demand often means higher purchase prices, compressing overall yield.
Which areas have the most renter demand in Spain right now?
Strongest renter demand is in Centro and Arganzuela in Madrid, Eixample and Gràcia in Barcelona, and Eixample and Extramurs in Valencia.
The dominant profile is young professionals aged 25 to 40 in tech, services, or creative industries, prioritizing walkability and short commutes.
Listings in these neighborhoods typically fill within days or hours, with multiple applications before viewings.
If you want to optimize your cashflow, you can 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 expected to boost rents are Madrid Nuevo Norte, Barcelona's 22@ expansion, and Barcelona's airport rail link (late 2026).
Benefiting neighborhoods include Chamartín, Fuencarral, and Tetuán in Madrid, plus Poblenou and Sant Martí in Barcelona.
Investors might expect 5% to 15% rent increases above baseline in catchment areas, depending on project timing.
You'll find our latest property market analysis about Spain 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-bedrooms outperform on yield, though larger apartments win on tenant stability and lower turnover.
Studios deliver 6% to 7.5% gross yields (€850 to €1,200/month, $920 to $1,300 USD), while two- and three-bedrooms fall in the 5% to 6% range.
Smaller units outperform because rent per square meter is highest for compact spaces.
However, larger units suit families or couples who sign longer leases and cause less wear, reducing turnover burden.
What property types are in most demand in Spain as of 2026?
As of early 2026, one- and two-bedroom apartments are most in-demand, driven by young professionals and couples.
Top three by demand: one-bedroom apartments, two-bedroom apartments, and well-located suburban townhouses.
The trend driving demand is more Spaniards and expats renting because buying is unaffordable or they value flexibility.
Large luxury villas are underperforming and likely to remain so, as the premium-rent tenant pool is limited outside tourist contexts.
What unit size has the best yield per m² in Spain as of 2026?
As of early 2026, the optimal size for yield per square meter is 30 to 50 square meters (studios and compact one-bedrooms).
Landlords can expect €15 to €20/m² monthly ($16 to $22 USD), depending on city and neighborhood.
Smaller micro-units face regulatory limits, while larger units spread income over more floor area, diluting yield in both directions.
By the way, we also have a blog article detailing whether owning an Airbnb rental 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 €300 to €1,500 ($325 to $1,625 USD), depending on municipality and cadastral value.
Other fees include waste collection (basura) at €50 to €200 annually ($55 to $215 USD).
Together, taxes and fees represent 3% to 8% of gross rental income, varying by municipal rates and property size.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Spain.
What insurance, maintenance, and annual repair costs should landlords budget in Spain right now?
Annual landlord insurance costs €150 to €400 ($165 to $435 USD), with apartments lower and houses higher.
Budget 0.5% to 1.0% of property value for maintenance, or €1,000 to €2,000 annually ($1,085 to $2,170 USD) for a €200,000 apartment.
The expense catching landlords off guard is humidity and water damage in older buildings, especially coastal areas.
Total budget: €1,500 to €3,000 annually ($1,625 to $3,250 USD) for insurance, maintenance, and repairs combined.
Which utilities do landlords typically pay, and what do they cost in Spain right now?
Tenants typically pay electricity, gas, water, and internet directly; landlords usually cover only community-fee utilities (common-area lighting, elevator).
Landlord-paid utilities cost €20 to €60 monthly ($22 to $65 USD), varying by building amenities.
What does full-service property management cost, including leasing, in Spain as of 2026?
As of early 2026, full-service management costs 8% to 12% of rent (plus VAT), or €80 to €120 monthly ($87 to $130 USD) on €1,000 rent.
Tenant-placement fees run about one month's rent, or €800 to €1,200 ($870 to $1,300 USD) per placement.
What's a realistic vacancy buffer in Spain as of 2026?
As of early 2026, budget 5% of annual rent for vacancy in major metros, or 8% in smaller cities with softer demand.
This means 2 to 4 weeks vacant in high-demand areas, 4 to 6 weeks where turnover is slower.
Buying real estate in Spain 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?
Whether it's in our blog articles or the market analyses included in our property pack about Spain, we always rely on the strongest methodology we can.
Below we've listed the authoritative sources we used and explained our methods.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| INE Housing Price Index | Spain's official statistics agency publishing the official price index. | We anchored official price growth direction. We reality-checked against portal data. |
| INE 2021 Census | Official nationwide census with transparent methodology. | We separated "empty stock" from rental vacancy. We explained why empty homes doesn't mean easy to rent. |
| MIVAU SERPAVI | Spanish government tool under housing law framework. | We described official rent reference ranges. We contextualized rent-setting rules. |
| BOE rent indices update | Official publication channel for Spanish law. | We confirmed the rent index is legally defined. We avoided blog summaries. |
| INE IRAV | INE's official rent-update index methodology. | We described rent update constraints from 2025. We separated official from market rents. |
| idealista sale index | Spain's largest portal with consistent long-running data. | We benchmarked price per square meter. We computed rent-to-price ratios. |
| idealista rent index | Widely tracked rent series with transparent publication. | We benchmarked rent per square meter. We computed gross yield proxies. |
| Banco de España Annual Report | Spain's central bank formal publication. | We framed housing returns context. We grounded narrative in central-bank view. |
| Banco de España BExplore | Official statistics product consolidating housing indicators. | We cross-checked our story. We confirmed tight supply plus rising prices. |
| Colegio de Registradores | Official body publishing registry transaction stats. | We triangulated portal numbers with transaction data. We supported strong 2026 prices. |
| Eurostat Housing 2025 | EU's official statistics authority. | We framed Spain in EU context. We kept definitions consistent. |
| Eurostat electricity prices | Official EU data on household electricity. | We anchored utility cost direction. We avoided random bill estimates. |
| AEAT deductible expenses | Spain's tax authority explaining rules directly. | We listed deductible income reducers. We avoided miscounting costs. |
| BOE Local Finance Law | Official consolidated local tax framework. | We grounded property tax legally. We explained IBI municipal variation. |
| Savills BTR Spain | Major global consultancy with research standards. | We supported supply-demand mismatch. We justified vacancy assumptions. |
| Fotocasa rental 2025 | Major Spanish platform with recurring research. | We captured renter demand behavior. We explained low urban vacancy. |
| Invest in Madrid | Official investment promotion site. | We named the Nuevo Norte project. We linked jobs to rent pressure. |
| Barcelona 22@ planning | City's own planning communication. | We explained Sant Martí demand. We supported jobs-cluster rent drivers. |
| Global Property Guide | Independent dataset comparing rents and prices. | We cross-checked rent-to-price calculations. We validated neighborhood yield patterns. |
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