How is rental yield calculated?

Gross yield = annual rent divided by purchase price. Net yield subtracts taxes and costs (IMU, condominium fees, maintenance, vacant periods) and refers to the capital actually invested.

Cedolare secca or IRPEF?

Cedolare secca is a flat-rate substitute tax; IRPEF depends on your income bracket. With high incomes, cedolare secca is often more advantageous. The calculator compares the regimes.

What is a canone concordato (agreed-rent contract)?

A contract with rents and terms agreed locally between associations: it gives access to reduced rates and other benefits, but the maximum rent is capped.

What yield should a good investment deliver?

It depends on the city and the risk. Compare net yield with low-risk alternatives and also consider appreciation, vacancy and management costs.

Victor & Co Real Estate

Yield on a rental property

Estimate gross and net yield and compare the tax regimes (cedolare secca flat tax at 21% or 26%, canone concordato at 10%, IRPEF) to see which pays best.

Property price€150,000

Purchase and renovation costs10%

Monthly rent

€/m

Months without rent per year

months

IMU

€/y

Non-recoverable condominium costs

€/y

Maintenance and insurance

€/y

Marginal IRPEF (income tax) rate

Gross yield

5.60%

€8,400

Net yield (best regime)

3.23%

Canone concordato (agreed rent) 10% · €5,330/year

Tax regime comparison

Regime	Tax/year	Net/year	Yield
Cedolare secca (flat tax) 21%	€1,617	€4,483	2.72%
Cedolare secca (flat tax) 26%	€2,002	€4,098	2.48%
Canone concordato (agreed rent) 10%	€770	€5,330	3.23%
Ordinary IRPEF	€2,560	€3,540	2.15%

Years to recover the investment

31 years

Cedolare secca rates and conditions (for example 26% for some additional properties) may change: check the rules in force. The IRPEF calculation uses 95% of the rent (5% flat-rate deduction) and ignores surcharges and tax credits. Informational tool: results are estimates and do not constitute an offer, financial advice or credit brokerage. Actual rates, spreads and taxes depend on the bank, the notary and your situation: check them before deciding.

Gross, net and invested capital

Gross yield overstates: the useful figure is the net yield on total capital, including purchase taxes and works.

The items that erode yield

IMU, non-recoverable condominium costs, maintenance and months without a tenant. A vacant period can cut the net yield a lot.

Choosing the tax regime

Which is best depends on income, type of contract and number of properties let. We recommend checking with an accountant before signing.

Frequently asked questions

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