Madrid investment buying · in English
Invest in Madrid on numbers that survive contact with reality.
Gross yields in Madrid run around 5.6% citywide, and the spread between districts is wider than the average suggests. We price every candidate against registered sales, and we will not quote you a short-let yield you cannot legally license.
- Yields quoted gross and net, with the costs shown
- We price against registered sales, not asking prices
- Management handoff, so it runs without you in Madrid
How we underwrite a Madrid investment
Yields
Gross, net, and the gap between them
Around 5.6% gross citywide, with outer districts above it and prime Salamanca well below. We quote net too: IBI, community fees, insurance, management, vacancy and maintenance take a 5.6% gross closer to 3.5-4% net. [verify: refresh before launch]
Pricing
Registered sales, not asking prices
A yield built on an asking price is a yield built on a wish. We price every candidate against what comparable flats on the same street actually sold for, which is also the number a bank's valuer will use.
Handoff
It has to run without you here
NIE by power of attorney, purchase signed by proxy, then a management company handling tenants, incidents and paperwork. Most of our investor clients visit Madrid once, or not at all.
The thing nobody else will tell you
We will not pitch you an Airbnb yield you cannot license
Most short-let yield projections for Madrid quietly assume a tourist-use licence that the property cannot get. Madrid requires an independent entrance for most short-let operation and the city has been restrictive about granting permission. We check whether a specific property can be licensed before you buy it, and if the numbers only work as a short let, we will tell you the deal does not work.
Questions investors ask
What yield should I actually expect?
Around 5.6% gross citywide as a starting point, with outer districts above it and prime Salamanca well below. Net is what matters: take off IBI, community fees, insurance, management, vacancy and maintenance, and a 5.6% gross is closer to 3.5-4% net. [verify: refresh with current figures before launch]
Can I buy for Airbnb?
Usually not the way the yield calculators assume. Madrid requires a tourist-use licence with an independent entrance for most short-let operation, and the city has been restrictive about granting them. We will tell you whether a specific property can be licensed before you buy, not after.
Can I do this without being in Madrid?
Yes. Your NIE can be obtained by power of attorney, the purchase can be signed by proxy, and management is handed to a company that handles tenants, incidents and the paperwork. Most of our investor clients visit once, or not at all.
What do non-residents pay in tax?
Rental income is taxed at 19% for EU/EEA residents, who can deduct expenses, and 24% on gross for everyone else, which is a meaningful difference. Madrid's regional relief makes wealth tax effectively zero. Confirm your own position with an asesor fiscal. [verify with a tax adviser]
Want the numbers on a specific building?
A free 20-minute call: your budget, the districts that fit it, and what the yield actually looks like after costs and tax. No pitch.