How to Calculate the Real Yield of a Villa in Crete in 2026

When buying a villa in Greece, an investor acquires not only real estate, but also a potential source of income. However, a project should be evaluated not by peak season rental prices, but by the final financial model, taking all expenses into account.\n\nLet us look at a calculation example for a modern villa with a pool priced at €770,000.\n\n## Step 1. Potential Rental Income\n\nSuppose the villa is located in a popular area of Crete and is rented out throughout the tourist season.\n\n| Period | Average Rate | Income |\n| --- | --- | --- |\n| July–August (10 weeks) | €4,500/week | €45,000 |\n| June and September (10 weeks) | €3,200/week | €32,000 |\n| May and October (6 weeks) | €2,000/week | €12,000 |\n\nPotential gross income — €89,000 per year.\n\nThis is an example of a financial model. Actual revenue depends on occupancy, management quality, property location, and market conditions.\n\n## Step 2. Annual Expenses\n\nWhen calculating returns, it is important to consider not only incoming revenue, but also mandatory expenses.\n\n| Expense | Approximate Amount |\n| --- | --- |\n| Property management | €17,800 |\n| Pool, garden, internet, water, electricity | €4,500 |\n| ENFIA (approx.) | €1,200 |\n| Tax liabilities* | approx. €16,500 |\n\nTotal annual expenses — approx. €40,000.\n\n* Tax amounts depend on the owner’s tax status, property ownership structure, and current legislation.\n\n## Step 3. Net Return Calculation\n\nIn this example:\n- Gross income — €89,000\n- Total expenses — €40,000\n- Net income — €49,000\n\nCalculation formula:\nROI = (Net Income ÷ Property Value) × 100\n\nIn this example:\n€49,000 ÷ €770,000 × 100 = 6.36% per year.\n\nIt is important to understand that this is a calculation example, not a guaranteed return. Figures will differ for each property.\n\n## Factors Affecting Investor Profit\n\nBefore purchasing, it is worth evaluating not only the price of the villa, but also:\n- property location and liquidity;\n- growth prospects for the area’s value;\n- seasonal occupancy rates;\n- management and maintenance expenses;\n- tax burden;\n- potential legal changes.\n\nA comprehensive analysis is what allows for an objective assessment of real estate investment potential.\n\nAnswers to common questions about buying real estate in Greece can be found in the FAQ section.\n\nIf you are planning to invest in Greek real estate, AILIT Group specialists can help you choose a property, calculate an individual financial model, and evaluate potential yield even before purchasing.\n\nContact Us\n\n---\n\nArticle reviewed by Alexey Fatuev — expert in construction and real estate development in Greece.