Bricks have always been the favourite refuge of Spanish savers. But with current prices and the new Housing Law, many wonder: Is it still worth buying to let?
1. The myth of 'Old Rent'
Forget your grandfather's stories. Today, buying a flat is not a guarantee of success. It requires calculation, strategy and knowledge to avoid losing money.
2. The 3 Metrics You MUST Never Ignore
- Gross Yield: Annual rent divided by property price. If it's below 6%, look elsewhere.
- Cash Flow: What's left in your bank account after paying mortgage, community fees and IBI. If you have to put money from your salary to keep the flat 'waiting for price to rise', you're betting on price drops and could end up selling your asset at a loss without ever having made a profit.
- ROE (Return on Equity): The return on YOUR money, not the total price. This is where the mortgage works in your favour.
3. Hidden Costs that Destroy Your Profit
Many novice investors do the milkmaid's calculation: I earn 800€, I pay 400€ mortgage, I gain 400€. MISTAKE.
You've forgotten:
- IBI (an extra payment less per year)
- Home and Default Insurance (essential)
- Community arrears (sooner or later, they arrive)
- Vacancy (the month the flat is empty you absorb the expenses)
- Maintenance (boilers that break, taps that drip...)
Conclusion
Yes, investing in real estate is profitable in 2026, but only if you buy well. Profit is made in the purchase, not in the rent. Use our Profitability Calculator to validate your numbers and draw data-driven conclusions before making any offer.