What does a holiday rental on the Costa Blanca earn?
On stock Terrivio tracks, gross yield on the Costa Blanca is typically 6–9% and net yield 3–5.5% after operating costs and purchase costs. The gap is the whole story: platform fees, cleaning, management, energy, insurance, community charges and local tourist tax often absorb 35–50% of gross revenue.
Worked example: a property at €245,000 let at €105 per night with 64% occupancy books about 234 nights and €24,570 of annual revenue (10% gross yield). After 25% variable costs and €3,600 of fixed costs, NOI is about €14,828 — 5.4% net on a total investment of €274,400.
Seasonality — do not annualise a peak week
The Costa Blanca has a longer winter than most Spanish coasts: Northern European residents and winter-sun weeks keep occupancy alive when the Costa del Sol is quieter inland. Summer still pays. 60–70% blended occupancy is realistic for a licensed sea-view flat in Alicante or Calpe; Benidorm hotels are a different (higher-volume, lower-ADR) market.
Urbanisations far from the beach look cheap and sit empty in May and October. Stress occupancy −10 points and add comunidad fees of €1,200–3,000 before you call it 5% net. ITP on resale is typically 10% in this region plus notary and registry.
Purchase costs and tax on the Costa Blanca
Budget about 12% above the asking price for acquisition costs in Spain. Main item: ITP 6–10% (resale) · 10% VAT + 1.5% AJD (new-build). These costs are gone on day one — that is why Terrivio divides NOI by total investment, not by asking price.
Non-resident EU/EEA owners pay 19% on net rental income (costs deductible); non-EU owners 24% on gross. Annual IBI property tax and Plusvalía on resale apply.
Tourist tax: Catalonia & Balearics: ~€2–7 per night. Usually collected from guests, but it still sits inside your competitive nightly rate.
Short-term rental rules on the Costa Blanca
Valencian Community holiday lets need a regional tourist licence plus Spain's national registry number (since July 2025). Some municipalities cap new licences or require a minimum stay. Unlicensed 'tourist rental' on Idealista is the usual way buyers overstate yield.
Country overlay (Spain): A regional tourist licence (VUT/HUT) plus the national single registry number (mandatory since July 2025) are required. Barcelona is phasing out tourist flats by 2028; the Balearics and parts of Andalusia restrict new licences.
Popular towns include Alicante, Benidorm, Altea, Calpe and Torrevieja. Each has a different seasonality and licence map — Terrivio scores regulation for the exact city on a listing analysis.
How to calculate yield on the Costa Blanca
- Estimate annual revenue. Use a blended ADR and annual occupancy, not a peak-week rate. Booked nights = 365 × occupancy. Then revenue = ADR × booked nights.
- Subtract operating costs. Variable costs (platform, cleaning, management) plus fixed costs (insurance, utilities, community fees, maintenance). A starting point on the Costa Blanca is 25% variable plus the fixed costs in the calculator.
- Add purchase costs to the price. Include transfer tax, notary, registry and agency — about 12% on the Costa Blanca.
- Divide NOI by total investment. That is net yield. Compare it with your mortgage rate and with a long-term rental fallback before you bid.
Frequently asked questions
Is a holiday home on the Costa Blanca a good investment in 2026?
It depends on licence, micro-location and whether you need the weeks yourself. Typical net yields are 3–5.5%. Always underwrite net, never gross, and never assume a peak-week rate runs 365 days.
How do I calculate rental yield on the Costa Blanca?
Net yield = (annual revenue − variable costs − fixed costs) ÷ (purchase price + acquisition costs). Annual revenue is ADR × 365 × occupancy. The calculator on this page does that with Costa Blanca defaults.
What are purchase costs on the Costa Blanca?
Plan about 12% of the price: ITP 6–10% (resale) · 10% VAT + 1.5% AJD (new-build), plus notary, registry and any agency fee.
Do I need a licence to let on the Costa Blanca?
Valencian Community holiday lets need a regional tourist licence plus Spain's national registry number (since July 2025). Some municipalities cap new licences or require a minimum stay. Unlicensed 'tourist rental' on Idealista is the usual way buyers overstate yield.