What does a holiday rental on the Costa del Sol earn?
On stock Terrivio tracks, gross yield on the Costa del Sol is typically 5–8% and net yield 2.5–5% 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 €295,000 let at €130 per night with 62% occupancy books about 226 nights and €29,380 of annual revenue (10% gross yield). After 25% variable costs and €4,000 of fixed costs, NOI is about €18,035 — 5.5% net on a total investment of €330,400.
Seasonality — do not annualise a peak week
The coast works almost year-round compared with northern Spain: winter golf and remote workers fill gaps that kill occupancy in cooler destinations. Summer still dominates ADR. 55–65% blended occupancy is a fair licensed-apartment case.
New-build off-plan often quotes 'guaranteed rental returns' from the developer. Treat those as marketing. Underwrite with independent ADR/occupancy for the postcode, add ~12% acquisition costs (ITP or VAT+AJD) and a 25% variable opex ratio.
Purchase costs and tax on the Costa del Sol
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 del Sol
You need an Andalusian VUT licence and the national registry number. Buildings whose statutes ban tourist use will not be licensed. Confirm both before reserving: a 6% extra yield assumption on an unlicensed unit is not a 6% extra 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 Marbella, Málaga, Estepona, Fuengirola and Nerja. 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 del Sol
- 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 del Sol 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 del Sol.
- 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 del Sol a good investment in 2026?
It depends on licence, micro-location and whether you need the weeks yourself. Typical net yields are 2.5–5%. Always underwrite net, never gross, and never assume a peak-week rate runs 365 days.
How do I calculate rental yield on the Costa del Sol?
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 del Sol defaults.
What are purchase costs on the Costa del Sol?
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 del Sol?
You need an Andalusian VUT licence and the national registry number. Buildings whose statutes ban tourist use will not be licensed. Confirm both before reserving: a 6% extra yield assumption on an unlicensed unit is not a 6% extra yield.