Property Investment & Rental Income Guide for the Costa Blanca

The Costa Blanca is one of Europe's most attractive destinations for property investment, offering a compelling combination of capital appreciation potential, strong rental yields, and an exceptional quality of life.

This guide provides a comprehensive overview of the investment landscape for international buyers, with a particular focus on the factors that matter most to Belgian and Dutch investors.

Gross rental yields on the Costa Blanca typically range from 4-6% for well-located properties, with some holiday rentals achieving higher returns during peak season.

Short-term tourist rentals require a Licencia Turística (tourist license) from the Valencian Community, which involves meeting specific requirements regarding safety, furnishing standards, and insurance.

Long-term rentals (12+ months) do not require a tourist license but are subject to different regulations under Spain's urban rental law (LAU).

Key considerations for investors include: property location (beach proximity and amenities drive rental demand), property type (2-3 bedroom properties typically achieve the highest occupancy), and total running costs (community fees, IBI tax, insurance, management fees, and non-resident income tax on rental earnings).

For EU/EEA residents, rental income is taxed at 19% on net profit, while non-EU residents are taxed at 24% on gross income.

WOW-Estates provides expert investment guidance.