Gross yield vs. net yield
Gross yield is the annual rent divided by the purchase price. It is quick to calculate and appears in most listings, but it ignores costs. Net yield is the annual income after vacancy, management, tax and running costs, divided by the total investment including purchase costs and renovation. Net yield is the number to compare with a savings account or other investments.
Example with the default values: €200,000 price, €850 rent, 5 % purchase costs, one empty month, €1,200 yearly costs and 8.4 % tax. Gross yield is 5.1 %; net yield on the €210,000 total investment is about 3.5 %.
What is a good rental yield?
As a rough guide, a net yield above 5 % is strong, 3–5 % is typical for city apartments in many European capitals, and below 3 % the return relies mostly on price growth. In Croatian cities, gross yields of 4–6 % are common, which often means 3–4 % net after costs and tax.
Do not forget the costs
- Vacancy: one month empty per year cuts income by more than 8 %.
- Building fund and maintenance: older buildings may need roof, facade or lift renovations funded by owners.
- Tax: rules differ by country. In Croatia long-term rental income is taxed at an effective 8.4 % of rent; a property rented long-term is exempt from the annual property tax.
- Purchase costs: in Croatia 3 % transfer tax on resale property plus notary, lawyer and agent.
Price growth
Total return is rent plus change in value. The 10-year figure uses the growth rate you enter; real price growth varies and can be negative. For short-term holiday letting, use the Airbnb profit calculator instead.
Frequently asked questions
How do I calculate rental yield?
What is a good net rental yield?
What is the rental yield in Croatia?
Is rental income taxed in Croatia?
Updated: November 2026 · Supremio Digital, Zagreb
