Gross yield vs net yield
Gross yield tells you how much the asset returns in the abstract. It's useful for comparing properties. Net yield deducts real operating costs (property tax, community fees, insurance, maintenance, vacancies) and is closer to real returns. A property with 6 % gross yield typically has 4-5 % net yield.
Cash-on-cash is most realistic when there is a mortgage
ROI on total price ignores the effect of leverage. If you buy a €200,000 property with €60,000 of your own money and €140,000 of mortgage, your real investment is €60,000 — and the return on that is what matters. Cash-on-cash measures exactly that.
What yields to look for on the Costa Brava 2026
As a reference for the Alt Empordà:
- Tourist rental (Roses, Empuriabrava, Cadaqués): gross yield 5-9 %, net yield 4-7 %.
- Stable residential rental (Figueres, inland villages): gross yield 4-6 %, net yield 3-5 %.
- Cash-on-cash with well-structured leverage: 8-15 % is achievable at 2.5 % interest in 2026.
If your calculation gives below 4 % net yield, the investment only makes sense if you expect meaningful capital appreciation. If it gives above 7 % net yield, check that your numbers are realistic (inflated rents and understated costs are the most common errors).