Tool 07 · Hold strategy · Free

Hold + Exit — 2 years vs 10 years

Side-by-side: quick flip in 2 years (Spanish reduced capital-gains treatment) vs. full 10-year hold + sell. Includes acquisition costs, annual IRNR rental tax, mortgage paydown, selling costs, and capital-gains tax. Net IRR after tax for each scenario.

Inputs

Sub-areaProperty type

I already know the asking priceYes, override the formula

Max guestsQuality — Advanced

STR / LTR mix — 70% STRResale (10.6% closing); unchecked = new build (13.7%)Buying with a mortgage (65% LTV @ 3.5%)Holding structureHabitual residence (Spanish CG exemption with reinvestment)

Capital growth — 4.0%/yrRental growth — 2.5%/yr

Reinvest % of proceeds (Spanish CG relief)0%

Best after-tax IRR

7.1%

10-year hold wins after tax. Purchase: €2,600,720 (auto-derived).

2-year flip IRR

1.6%

€0 net

10-year hold IRR

7.1%

€0 net

Acquisition cost

€275,676

Purchase €2,600,720

Year-1 net rental

€178,497

after IRNR + opex

Scenario detail

Purchase price: €2,600,720
Total acquisition (price + closing): €2,876,396
Equity in: €2,876,396
Year-1 gross rental: €275,213
Year-1 net rental (after tax): €144,582
2-yr sale: gross proceeds: €0
2-yr sale: CGT: €0
2-yr sale: net proceeds: €0
10-yr sale: gross proceeds: €0
10-yr sale: CGT: €184,928
10-yr sale: net proceeds: €0

V1 simplified — Spanish CGT progressive brackets (19/21/23/27/28%) for residents, 19% flat for EU non-residents. Habitual-residence reinvestment relief applies when checked + reinvest % > 0. Selling costs ~5% (agent + lawyer). Mortgage paydown via 25-yr amortisation @ 3.5%.

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