17/ Percentage of the value of the property, known as the “yield”

The rental income is calculated in terms of a percentage of the value of the property known as “yield”. This percentage is calculated on the value of the property excluding VAT, (since you will not have paid it) and sometimes includes the parking space and/ or furniture. This needs to be checked before purchasing since the rule varies from one property to another. The rental income is subject to 5.5% VAT but the general consensus is to quote the percentage or the rental income NET, after VAT.