Holiday rentals in Spain: how to achieve 8-10% yield from your second home

Holiday rentals in Spain are the way to quickly recoup your investment in a second home. With the right property, location and approach, you can easily achieve 8-10% gross yield per year. In this article we explain how to buy a property that lends itself perfectly to holiday rentals, what the legal rules are and how to maximise your occupancy rate.

Why holiday rentals in Spain are so profitable

Spain is the world's second-most visited holiday destination (after France). In 2025 the country welcomed more than 90 million tourists, and the trend continues. This results in:

• Constant demand for holiday properties.
• High rental prices in peak season.
• Long rental seasons (April-October) on the Costa Blanca.
• The option to rent to long-term tenants in low season.

For those investing in property on the Spanish coast, holiday rental is therefore a lucrative addition to the value appreciation of the property itself.

How much can you earn with holiday rentals in Spain?

The yield on holiday rentals in Spain depends on several factors. Some examples:

Example 1: Apartment Torrevieja

• Purchase price: €175,000
• Average weekly rent peak season: €800
• Peak season weeks: 12 (€9,600)
• Mid-season weeks: 16 at €450 (€7,200)
• Total gross rental income: €16,800
• Gross yield: 9.6%

Example 2: Villa with pool Moraira

• Purchase price: €550,000
• Average weekly rent peak season: €2,200
• Peak season weeks: 14 (€30,800)
• Mid-season weeks: 12 at €1,300 (€15,600)
• Total gross rental income: €46,400
• Gross yield: 8.4%

Example 3: Penthouse Calpe

• Purchase price: €320,000
• Average weekly rent peak season: €1,400
• Peak season weeks: 14 (€19,600)
• Mid-season weeks: 14 at €750 (€10,500)
• Total gross rental income: €30,100
• Gross yield: 9.4%

Legal rules for holiday rentals in Spain

Since 2018, holiday rentals in Spain have been more strictly regulated. Rules vary by region:

Valenciana (Costa Blanca)

• Licencia turística required (regional registration number).
• Property inspection (size, amenities, safety).
• Mandatory amenities: air conditioning, first aid kit, fire extinguisher, complaints book.
• Maximum guests based on size (typically 2 per bedroom + 2).

Murcia (Costa Calida)

• VFT number (Vivienda de Uso Turístico) required.
• Similar requirements for amenities.
• Mandatory guest registration with police within 24 hours.

Andalusia (Costa Almeria)

• Vivienda con Fines Turísticos registration.
• Strict requirements for minimum amenities.
• Tourist tax per night per guest.

Important: renting without the proper licence can result in fines of €30,000 to €150,000. Always work with a lawyer who knows the rules in your region.

Taxes on holiday rentals in Spain

For non-residents (EU citizens):

• Modelo 210 quarterly declaration of rental income.
• Tax rate: 19% on net rental income (after deduction of costs).
• Deductible costs: mortgage interest, municipal taxes, maintenance, management, insurance, depreciation (3% per year).

For residents:

• Rental income is added to regular income.
• Progressive tax rate of 19-47%.
• But more deduction options.

How to maximise your yield

1. Choose the right location

The three most important factors for successful holiday rental in Spain:

• Distance to beach (< 1km is ideal).
• Distance to airport (< 1 hour).
• Presence of pool or shared pool.

2. Invest in the right amenities

What guests expect in 2026:

• Fast wifi (mandatory!).
• Air conditioning in all bedrooms.
• Smart-TV with Netflix.
• Fully equipped kitchen (dishwasher, oven, microwave, coffee machine).
• Washing machine.
• Outdoor space with furniture and BBQ.
• Stylish, modern interior.

3. Work with the right platforms

• Airbnb: broadest reach, high commission (15%).
• Booking.com: many bookings, commission 15-20%.
• Vrbo: strong for holiday homes, commission 8-10%.
• Your own website: no commission, but requires marketing.

Tip: combine multiple platforms via a channel manager to prevent double bookings.

4. Price dynamically

Adjust your prices based on:

• Season (July-August 2-3x more expensive than October).
• Local events (festivals, congresses).
• Competition in your area.
• Occupancy rate.

Use tools like PriceLabs or Wheelhouse for automatic price optimisation.

5. Invest in photography and marketing

Good photos sell your property. Invest in:

• Professional photography (€300-500).
• Drone shots for villas with pool.
• Virtual tour.
• SEO-optimised descriptions in English, German, Dutch and French.

6. Provide excellent service

5-star reviews lead to more bookings. Ensure:

• Personal welcome message.
• Welcome pack (local wine, fruit).
• Quick replies to questions (< 1 hour).
• Cleaning service between guests.
• 24/7 local contact (often a Property Manager).

Property management: DIY or outsource?

Self-manage

Pros:

• Higher margin (no 20-30% management commission).
• Direct control.

Cons:

• Time-consuming (average 5-10 hours per week).
• Difficult from abroad.
• Stressful when problems occur.

Hire a property manager

Pros:

• Fully managed.
• Local expertise.
• Professional cleaning and maintenance.

Cons:

• Costs 20-30% of rental income.

For most investors, a property manager is the smartest choice. The extra cost is more than compensated by:

• Higher occupancy.
• Better reviews.
• Less stress.

Conclusion: holiday rentals in Spain pay off

With the right property, location and approach, holiday rentals in Spain are one of the most profitable investments you can make. Expect 8-10% gross yield per year, plus annual value appreciation of 6-8%. For those investing in property on the Costa Blanca, Costa Calida or Costa Almeria, this combination is matched by few other investments.

At CasaOthers, we help you find a property that lends itself perfectly to holiday rentals. View our investment property listings and take the first step towards passive income from Spanish real estate.