Rental yield in France: gross, net and cash flow
The gross yield listings quote, the net yield after notary fees, works, vacancy, charges and property tax, and cash flow with a loan, with a worked example.
Kivlo · Updated November 7, 2026 · Sources checked November 7, 2026 · 2 min read
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A home's gross yield, the one listings quote, sets the yearly rent against the purchase price alone. The net yield counts what the listing leaves out: notary fees, works, months without a tenant, charges you cannot pass on and property tax (taxe foncière). Cash flow says what is left each month once the loan is paid. All three are before tax.
The rental yield calculator works them out with your figures, with no sign-up.
The three figures
| Figure | Calculation |
|---|---|
| Gross yield | Yearly rent excluding charges ÷ purchase price × 100 |
| Net yield | (Rent collected − non-recoverable charges − property tax − other costs) ÷ (price + notary fees + works) × 100 |
| Monthly cash flow | (Yearly net income ÷ 12) − loan payment |
What goes into the whole cost
- The purchase price.
- Notary fees (frais de notaire), mostly taxes (transfer duties) plus the notary's pay. According to Service-Public, the notary must give you a detailed written estimate on request; ask for it rather than applying a percentage.
- Works done before letting.
What reduces the rent
- Vacancy: months without a tenant between leases. One month a year is a careful assumption for a year-round let; zero assumes a tenant who never leaves.
- Non-recoverable charges. A French landlord can only pass on the charges in the closed list of decree no. 87-713 of 26 August 1987. The rest is the landlord's: according to Service-Public, for instance facade renovation, a new roof or the building manager's (syndic) fees.
- Property tax: owed by whoever owns the home on 1 January, even when it is let. Only the household waste tax (TEOM), on the same notice, can be passed on to the tenant (Service-Public).
- Other costs: non-occupying owner's insurance, management fees, upkeep.
Worked example
A flat bought for €180,000, with €14,500 of notary fees and €6,500 of works, let at €850 a month excluding charges. Allow one month of vacancy a year, €600 of non-recoverable co-ownership charges, €900 of property tax and €250 of other costs.
| Step | Calculation |
|---|---|
| Yearly rent | €850 × 12 = €10,200 |
| Gross yield | €10,200 ÷ €180,000 = 5.67% |
| Rent collected | €850 × 11 = €9,350 |
| Net income | €9,350 − €600 − €900 − €250 = €7,600 |
| Whole cost | €180,000 + €14,500 + €6,500 = €201,000 |
| Net yield | €7,600 ÷ €201,000 = 3.78% |
| Cash flow without a loan | €7,600 ÷ 12 = €633.33 a month |
With a €160,000 loan over 20 years at 3.5%, repaid in equal instalments, the monthly payment is €927.94 before insurance. Cash flow becomes −€294.61 a month: each month the investor tops it up. The net yield does not move: it does not depend on the financing.
The yield is before tax
Rental income is added to your income and bears French income tax and social charges, under the micro-foncier or the réel regime. The micro-foncier or réel guide explains which to choose.
The limits of a yield calculation
It holds rent and costs flat. In reality, rent can be reviewed each year against the IRL index if the lease allows it (see the rent review guide), charges and property tax change, and unpaid rent or major works weigh on a given year. What to do about unpaid rent is set out in Unpaid rent in France: what to do, step by step. A yield compares projects; it does not promise an income.
Have your project checked
Before buying, have your financing plan and your tax position reviewed by an adviser (bank, notary, accountant). Your département's ADIL also gives free advice on buy-to-let (in French).
Sources
- Notary fees: what are they?, Service-Public
- Recoverable rental charges, Service-Public
- Decree no. 87-713 of 26 August 1987, list of recoverable charges (Légifrance)
- Property tax on built property, Service-Public
- ANIL and the ADIL network, free housing advice
Last checked on 7 November 2026
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Frequently asked questions
How is the gross rental yield worked out?
The yearly rent excluding charges divided by the purchase price, times 100. It is the figure listings quote; it ignores purchase costs, works, vacancy and charges.
And the net yield?
The rent actually collected over the year, less non-recoverable charges, property tax and the landlord's other costs, divided by the whole cost of buying (price, notary fees and works). It is still before tax.
Which charges can a French landlord not pass on to the tenant?
Every charge outside the closed list of the decree of 26 August 1987, for instance the building manager's fees, major works or facade renovation. Property tax also stays with the owner, except the household waste tax, which is recoverable.
What is cash flow?
What is left each month once costs and the loan payment are paid, before tax. When negative, you top it up yourself.
Why is tax not counted?
It depends on your tax bracket, social charges and the regime you choose (micro-foncier or réel). It is worked out separately, with your own figures.
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Kivlo editorial team
Updated November 7, 2026 · Sources checked November 7, 2026 · 2 min read