Key metrics
Gross yield
5.14%
Net yield — NOI ÷ price
1.97%
All-in yield — NOI ÷ cost
7.46%
Monthly cash flow
-€729
DSCR — NOI ÷ mortgage
0.44
Cash-on-cash
-9.45%
IRR (levered)
3.49%
Capital invested
€92,580
Equity at exit
€251,278
Monthly mortgage
€1,305
IRS Cat. F — long-term residential: lease duration ≤5 yrs → 25%. Effective rate: 25.0%.
Upfront acquisition costs
IMT — property transfer tax€15,300
Stamp duty on deed — IS (0.8%)€2,800
Stamp duty on mortgage — IS (0.6%)€1,680
Notary & land registry fee€2,800
Total acquisition costs€22,580
Methodology: NOI = gross rent − IRS − IMI − AIMI − maintenance − insurance − management (mortgage excluded). DSCR = NOI ÷ annual mortgage (standard lender definition). Net yield uses purchase price as denominator for comparability with market listings; all-in yield uses total cash deployed. Loan = purchase price × LTV only (acquisition costs not rolled into loan).
Annual cash flow
Gross rentIRSMortgageIMI+AIMIOtherNet CF
Equity build-up
Market valueEquityLoan balance
Year-by-year schedule
| Yr | Gross rent | IRS | Mortgage | IMI+AIMI | Other costs | Net CF | Equity | Value |
|---|---|---|---|---|---|---|---|---|
| 1 | 17,527 | 4,382 | 15,656 | 639 | 5,603 | -8,753 | 85,604 | 360,500 |
| 2 | 17,966 | 4,491 | 15,656 | 649 | 5,647 | -8,478 | 101,721 | 371,315 |
| 3 | 18,415 | 4,604 | 15,656 | 659 | 5,691 | -8,195 | 118,368 | 382,454 |
| 4 | 18,875 | 4,719 | 15,656 | 669 | 5,738 | -7,906 | 135,561 | 393,928 |
| 5 | 19,347 | 4,837 | 15,656 | 679 | 5,785 | -7,609 | 153,320 | 405,746 |
| 6 | 19,831 | 4,958 | 15,656 | 689 | 5,833 | -7,305 | 171,663 | 417,918 |
| 7 | 20,327 | 5,082 | 15,656 | 699 | 5,883 | -6,993 | 190,610 | 430,456 |
| 8 | 20,835 | 5,209 | 15,656 | 710 | 5,933 | -6,673 | 210,181 | 443,370 |
| 9 | 21,356 | 5,339 | 15,656 | 720 | 5,986 | -6,345 | 230,396 | 456,671 |
| 10 | 21,889 | 5,472 | 15,656 | 731 | 6,039 | -6,009 | 251,278 | 470,371 |
Disclaimer: Illustrative model only. IMT, IS, IMI and IRS rates reflect 2025 rules for mainland Portugal. A proposed 10% flat rate for rents ≤ €2,300/month had not passed into law as of April 2026. Cat. B (AL) simplified regime modelled at 35% taxable base × marginal IRS rate. Always consult a certified Portuguese tax advisor (contabilista certificado) before making investment decisions.