Before you buy for income,
calculate the net yield —
not the gross figure
agents quote.Before you buy for income, calculate the net yield — not the gross figure agents quote.
Gross rental yield is what the listing says. Net yield is what you keep after IMI, AIMI, IRS income tax, maintenance, management, and the RJAL containment zone check. PropCheck calculates the real number for any property in Portugal.
PropCheck calculates rental yield in two scenarios — Alojamento Local (short-term) and arrendamento habitacional (long-term) — and shows net yield after all Portuguese holding costs: IMI, AIMI, IRS income tax (Category F simplified regime vs Category B actual costs), management fees, and RJAL containment zone impact. It also checks whether the specific address can legally obtain a new AL licence under RJAL 2023 before you build a short-term rental strategy around it.
The rental yield figure quoted by agents and portals is almost always gross — annual rent divided by purchase price, before any costs. In Portugal's tax and regulatory environment, the gap between gross and net yield can be 3–4 percentage points. A property advertised at a 6% gross yield may return 3.2% net after IMI, IRS on rental income, management fees, and voids. That difference determines whether the investment makes sense.
The RJAL 2023 factor is critical: buying in an AL containment zone doesn't automatically prevent short-term rental, but it does mean new licences are suspended. If the property doesn't already hold an AL licence that transfers with the sale, your short-term rental strategy may not be legally viable from day one.
What the yield calculator includes
- Gross short-term rental income — Estimated based on occupancy data for the municipality and property type. For paid subscribers, available by postcode and property size.
- Gross long-term rental income — Estimated from current arrendamento market rates in the area (INE and private sector data).
- IMI deducted — Annual property tax at the municipality rate and VPT, deducted from both scenarios.
- IRS — Category F (simplified regime) — 15% coefficient applied to rental income, with 28% flat tax on the result. The default for most long-term rental landlords.
- IRS — Category B (AL, actual costs) — AL income taxed as business income. Simplified regime (15% coefficient) vs actual costs regime comparison included.
- Management fees — Estimated at 10% for short-term rental management and 5% for long-term agency fee amortised annually.
- RJAL containment zone check — Determines whether a new AL licence can be obtained at the address before the yield calculation is finalised.
Sample output — T2 apartment, Alfama, Lisboa
| AL — Short-term | Long-term | |
|---|---|---|
| Estimated gross annual income | €31,200 | €18,000 |
| Management fees | — €3,120 (10%) | — €900 (5%) |
| IMI (0.34% × VPT €290k) | — €986 | — €986 |
| IRS on rental income | — €5,940 (Cat. B simplified) | — €2,170 (Cat. F simplified) |
| Maintenance estimate | — €2,000 | — €1,200 |
| Net annual income | €19,154 | €12,744 |
| Net yield on purchase price | 4.67% | 3.11% |
| RJAL 2023: Alfama is a containment zone — new AL licence suspended. Existing licence required for AL scenario. | ||
AL vs long-term — which is right for you?
The short-term yield in the sample above is meaningfully higher — but only if you can legally operate AL and are willing to manage the operational complexity (guest turnover, platform management, seasonal voids). Long-term rental is simpler, more predictable, and benefits from IRS Category F's lower effective rate. The optimal choice depends on your tax situation, the specific property, and whether the location genuinely supports strong AL occupancy outside peak season.
PropCheck shows both scenarios side by side so you can compare them with accurate Portuguese tax and cost inputs — not the gross yield figure that appears in the listing.
Frequently asked questions
Calculate the net yield — not the number the agent quoted.
AL vs long-term. RJAL zone check. IRS on rental income. IMI and AIMI. The real return, before you buy.