financing

What rental yields can I expect from a Costa Blanca property?

Rental yields on the Costa Blanca vary significantly by location, property type, and rental strategy, but the region consistently offers attractive returns compared to many Northern European property markets.

Here is a data-driven overview.

Short-term holiday rentals (tourist license required) typically achieve gross yields of 5-8% in prime locations.

The best performers are 2-3 bedroom properties near beaches with pools — these command nightly rates of €80-€200 in peak season (June-September) and €40-€100 in shoulder seasons.

Annual occupancy for well-managed holiday rentals typically ranges from 60-80%.

Long-term rentals (12+ months, no tourist license needed) offer more predictable but generally lower returns of 3-5% gross.

These are increasingly popular with the remote working demographic.

By area: Costa Blanca South (Orihuela Costa, Torrevieja) — Higher yields of 5-7% gross due to lower purchase prices and strong tourist demand.

A €150,000 apartment can generate €8,000-€10,000 in annual rental income.

Costa Blanca North (Jávea, Moraira, Calpe) — Lower yields of 3-5% gross due to higher purchase prices, but stronger capital appreciation.

A €400,000 villa might generate €16,000-€20,000 annually.

Important considerations: management fees (typically 15-25% of rental income), cleaning costs, maintenance, insurance, and taxes will reduce your net yield by approximately 30-40%.

For Belgian and Dutch investors, the 19% Spanish tax rate on net rental income (for EU residents) compares favorably with domestic tax rates.

WOW-Estates can provide detailed rental projections for specific properties.