Buy-to-let
Buy-to-let
- What it is
- Buying property not to live in but to let
- Where the income comes from
- Rental payments plus possible growth in the property’s value
- What to calculate
- The net yield after all costs, not the gross yield
- What is forgotten
- Taxes, management, maintenance, repairs and void months
- Important for programmes
- Some programmes restrict letting a property bought under them
In plain words
Buy-to-let is buying property not to live in yourself but to let. The logic of the investment is clear: the property brings in regular rental income and may grow in value at the same time. For many people this is the first way into foreign real estate.
The main calculation mistake is relying on the gross yield shown in the seller’s materials. The real picture emerges after deducting all costs: tax on rental income, property tax, service charges, the management company’s fee, insurance, routine repairs and, above all, void months between tenants.
A separate point for our clients: if a property is bought as part of an immigration programme, the rules on its use may be restricted. Some programmes expressly prohibit or restrict letting the property during the holding period. This is found out before the deal, not after the expected income has already been calculated.
When it is considered
What to include in the calculation
- Rental rate
- Occupancy during the year
- Growth in the property’s value
- Tax on rental income
- Maintenance and utilities
- Repairs and furniture
- The management company’s fee
- Finding tenants
- Dealing with problems on the ground
- The programme’s rules
- Local rental regulation
- Short-term letting and licences
How to approach the calculation
- 01Assess the real rental rate
- 02Calculate all costs and void periods
- 03Check the programme’s restrictions
- 04Choose a management model
- 05Calculate the net yield
What you need to know
- The advertised gross yield is always higher than the real one
- Void periods between tenants are normal, not force majeure
- Rental income is taxed in the country where the property is located
- Short-term letting is regulated separately in many cities
- The programme may restrict letting the property
Common mistakes
- Calculating the yield from the seller’s figures
- Not allowing for void months
- Forgetting tax on rental income
- Not checking the city’s short-term letting rules
- Planning to let a property bought under a programme with restrictions
What this means for a BRIDGES client
We calculate the yield realistically: with taxes, maintenance, management and void periods. And we always check whether your programme allows the property to be let — so that the investment plan does not diverge from the immigration conditions.
Frequently asked questions
01 /What is buy-to-let?
Buying property to let rather than to live in yourself. The income comes from rent and possible growth in value.
02 /How does gross yield differ from net?
Gross yield is rental income relative to the price, without costs. Net yield is calculated after taxes, maintenance, management and void periods.
03 /Which costs are usually forgotten?
Tax on rental income, service charges, the management company’s fee, repairs and void months between tenants.
04 /Is rental income taxed?
As a rule, yes — in the country where the property is located, and sometimes in your country of tax residence too. This is calculated in advance.
05 /Can a property bought under a programme be let?
Not always. Some programmes restrict or prohibit letting during the holding period. The conditions are checked before the deal.
06 /What about short-term letting?
In many cities it is regulated separately: licences are required, there are limits on the number of days, or it is banned outright in certain zones.
See also
Read next
This material has undergone editorial review by BRIDGES.
Buying a property to let?
We will calculate the net yield and check the programme’s restrictions — before the deal.