Amalfi Coast Rental Yield Analysis: What Net Returns Actually Look Like
Gross yields on premium Amalfi Coast property run 3 to 4% in well-managed scenarios. Net yields after all deductions typically fall to 0.3 to 1.0% of purchase price. Annual occupancy for professionally managed Positano or Ravello properties realistically runs 50 to 65%. Management fees run 20 to 30% of gross rental revenue, plus a separate maintenance budget.
Why Peak-Week Rates Are the Wrong Starting Point
The most common analytical error American buyers make is projecting peak-week rental rates across the full year. A well-positioned Positano property can command 2,500 to 5,000 EUR per night during peak July and August weeks. The extrapolation error is treating those eight to ten weeks as representative of what the asset generates year-round. The Amalfi Coast is a highly seasonal market. Demand builds from mid-May, peaks in July and August, and drops sharply after mid-October. From November through March, most coastal rental properties sit largely empty.
Occupancy Benchmarks by Town
| Location | Peak Season (Jun-Sep) | Shoulder (Apr-May, Oct) | Off-Season (Nov-Mar) | Annual Occupancy (Est.) |
|---|---|---|---|---|
| Positano | 85–95% | 40–55% | 5–15% | 50–65% |
| Ravello | 75–88% | 45–60% | 10–20% | 50–65% |
| Praiano | 80–90% | 40–55% | 5–15% | 52–65% |
The Gross-to-Net Deduction Stack
Property Management Fees: Full-service management runs 20 to 30% of gross rental revenue covering guest communications, check-in, cleaning, and routine maintenance response. It does not cover capital maintenance.
Italian Income Tax: For short-term rentals under 30 days, non-resident owners can elect the cedolare secca flat tax at 21% of gross rental revenue. The US-Italy tax treaty provides some double-taxation relief, but requires a US tax attorney to handle correctly.
IMU: Italian municipal property tax, assessed annually at 0.86 to 1.06% of adjusted cadastral value for non-resident second homes.
Maintenance and Capital Reserves: Coastal properties face accelerated wear. Budget a maintenance reserve of 1 to 1.5% of property value per year, on top of management fees.
Model Yield: Positano Property at 2M EUR
| Line Item | Conservative | Optimistic |
|---|---|---|
| Gross Rental Revenue (annual) | €65,000 | €90,000 |
| Management Fees (25%) | (€16,250) | (€22,500) |
| Italian Income Tax (cedolare 21%) | (€13,650) | (€18,900) |
| IMU (est.) | (€4,000) | (€4,000) |
| Maintenance (1.25%) | (€25,000) | (€25,000) |
| Net Return | €6,100 (0.3%) | €19,600 (1.0%) |
Frequently Asked Questions
What is the net rental yield on Amalfi Coast property?
Net yields after management fees, Italian income tax, IMU, and maintenance typically run 0.3 to 1.0% of purchase price for premium properties in well-managed scenarios.
What does property management cost on the Amalfi Coast?
Full-service management typically runs 20 to 30% of gross rental revenue. Budget an additional maintenance reserve of 1 to 1.5% of property value annually for coastal wear, separate from the management percentage.