DNPI methodology: how project metrics are calculated

The DNPI methodology is a set of formulas and rules under which the full project budget is calculated first, the term and exit scenario are fixed, and only then is DNPI's contractual fee applied. The principle, in one sentence from the methodology page: return cannot be derived only from the difference between the purchase and sale prices. The page states "Checked 3 October 2026", the publisher is DNPI CAPITAL S.L., and there is no version number. This article restates what is published on the methodology and calculator pages and adds nothing about the company's internal workings.

Which metrics does the methodology calculate, and by which formulas?

Six metrics, all on the same cost base.

In the calculator the annual figure is called a "conventional annual equivalent", and the same page says it is a mathematical comparison of terms, not a promise to repeat the result.

Which costs go into the calculation?

Seven groups: the acquisition price and tax base; ITP, or IVA and AJD, depending on the property and the party to the deal; notary, registration, legal and technical checks; design, licences, works, furniture and a reserve for changes; IBI, comunidad, insurance, utilities and security; interest, bank fees and the cost of capital's time; marketing, agency costs, taxes and closing costs at exit. For the general ITP scale the calculator refers to the rates of the Agència Tributària de Catalunya with the note "checked 20.09.2026": 10% on the first 600 000 €, 11% on the next 300 000 €, 12% on the next 600 000 €, 13% above 1,5 M€.

What are the three mandatory scenarios?

Base, conservative and favourable. The favourable one shows the potential but is not used to justify an inflated purchase price.

How is the investor's result calculated?

First the agreed investment base is returned and the distributable result of the project is determined. Then the contractual model is applied. With DNPI's fee of 50% of profit, the other half of the positive distributable result stays with the investor, but that is not half of the sale price. If the investor's return over the whole project, after distribution, falls below the contractual 10%, DNPI pays contractual compensation out of its own fee. This is a return per project, not annual; the conditions, calculation base and limits are set by the contract for the specific project, and it is not a guarantee of capital preservation. The composition of costs, the order of capital return and taxes are likewise determined by the project documents. The difference between the metrics is explained in the article on project return and investor return.

What does this look like in round numbers?

A worked example, not a forecast and not a DNPI project. Assumptions: purchase of 1 M€, ITP by the scale of 105 000 €, works including IVA of 150 000 €, sale costs of 3% of the sale price (as built into the calculator), the investor funds all costs up to the sale, profit taxes are not counted. ROI is calculated as in the calculator: profit divided by the investment before sale. On the total investment base from the table above it would be 20,03% and 6,02%.

A 10% price drop, six months of delay and a 30 000 € reserve cut project profit by more than two thirds. In the conservative column the investor's return per project is below 10%: under the model this is a case for a top-up out of DNPI's fee, but its amount, base and limits are set by the contract for the specific project, and it is not included in the table's figures. Enter your own assumptions in the calculator; break-even is covered in the article on the price below which there is a loss.

How does the methodology read on completed projects?

Gross profit under the methodology's formula is built the same way as the "difference before other costs" in the two DNPI cases; in Sitges, permits and licences stand in place of works.

The difference equals the sale minus the purchase and the costs shown. It does not include taxes, financing, closing costs or other expenses: it is not net profit and not the investor's return. Past results do not guarantee future ones.

When do the calculator and methodology not fit?

The calculator does not suit someone calculating rental yield: it models purchase, renovation and sale in Catalonia, not rental cash flow. The methodology and calculator do not replace a property valuation or a tax decision: the calculator's result, as the page says, is a calculation scenario, not a valuation, an offer or a promise of return. Taxes and contractual consequences, according to the methodology text, are confirmed for each investor and deal structure.

The page describes the order of checks before a decision this way: units of measurement are reconciled, IVA in the estimate, dates of receipts and payments, absence of double counting, and the match of the exit price to comparables, and the final calculation must be reproducible by another specialist from the same documents. For a specific property there is a deal analysis.