The Return on Investment (ROI) of a property in Fuerteventura is the figure every investor asks about — and that few know how to calculate correctly. The difference between gross and net yield can be 3–4 percentage points, and ignoring it means forming a completely distorted view of real profitability. In this article we show you how it's really calculated, with all costs included.
Gross yield vs net yield: the difference that matters
The gross yield is the simplified calculation seen on many websites: annual revenue ÷ purchase price × 100. It's useful as a starting point but says nothing about real profitability.
The net yield is what actually reaches your bank account, after all costs. It's the only number that matters when evaluating an investment.
Gross yield formula: Annual gross revenue ÷ Total purchase price × 100
Net yield formula: (Annual gross revenue − All costs) ÷ Total purchase price × 100
What costs do you need to deduct?
Here is the complete list of costs to subtract from gross revenue to arrive at net yield:
- OTA commissions (Airbnb 3%, Booking 15%): averagely 10–15% of revenue, depending on channel mix
- Cleaning: €30–80 per turnover depending on size. On an annual basis for a studio with high occupancy: €2,400–4,800/year
- Property manager commission: if using an external manager
- IBI (municipal tax): €200–800/year depending on cadastral value
- Community fees: €600–2,400/year depending on the development
- Insurance: €300–600/year
- Routine maintenance: 1–2% of property value per year
- IRNR (non-resident income tax): 19% on taxable net income
- WiFi, utilities: €600–1,200/year
Real scenarios by property type and area
Here are 4 concrete scenarios with complete calculations. Data is based on managed properties at 2026 prices:
Net ROI calculated on an annual basis, including professional management, all operating costs and IRNR taxation at 19%. Does not include capital appreciation.
Total ROI: rental income + capital appreciation
Rental ROI is only half the picture. The other half is capital appreciation — how much the property has increased in value since purchase.
Combining both components for a 1-bed in Corralejo purchased in 2022:
- Net rental ROI: ~7.5% per year
- Capital appreciation: +32% in 3 years (+9.6% average per year)
- Total ROI: approximately 17% per year
This type of combined return is difficult to replicate in other comparable European markets. Paris, Milan, Lisbon — all show much lower rental yields due to high prices relative to rents.
Comparison with other European markets
- Milan centre: gross yield ~4.5%, net ~2.8% (high costs, high taxation)
- Barcelona: gross yield ~5%, net ~3.2% (short-term rental restrictions)
- Lisbon: gross yield ~5.5%, net ~3.5%
- Mallorca: gross yield ~6%, net ~4% (strict regulation)
- Fuerteventura: gross yield ~9–12%, net ~6–8%
The difference is structural: Fuerteventura has almost no seasonality (12 months of tourists), lower purchase prices than premium destinations, favourable taxation (IGIC 6.5%) and a short-term rental market still in strong growth.
📊 RockOcean benchmark: Our managed portfolio shows an average net yield of 7.1% in 2025, with top performers (beachfront studios in Corralejo) exceeding 9% net. The difference between an average property and a top performer? Almost always the quality of management.
The role of property management in net yield
A figure rarely discussed: the revenue difference between a professionally managed property and one managed amateurishly is 20–40%. The main reasons:
- Dynamic pricing optimises daily rates based on real demand
- Multi-platform presence (Airbnb + Booking + direct channels) maximises occupancy
- Positive reviews — the result of professional management — boost OTA ranking
- Professional cleaning management reduces complaints and increases repeat bookings
In ROI terms: a professionally managed 1-bed generating €22,000 vs the same property self-managed generating €16,000 — at the same fixed costs, the annual net difference for the owner is approximately €4,800.
Want a real ROI estimate for your property or one you're evaluating? Message us on WhatsApp — we'll prepare a free personalised analysis in 48 hours.