Rental Yield on
Costa del Sol New Builds

Short-term holiday rental generates higher gross income in peak season but requires active management and carries higher vacancy risk in low season. Long-term residential rental provides stable income with lower management burden and higher net-to-gross retention. Most investment advisors recommend a hybrid strategy — long-term rental in winter months and short-term in summer — to maximise annual income while managing occupancy risk. The Costa del Sol's year-round tourism largely reduces the seasonality gap compared to northern European beach markets.

Yes. To legally rent your property on a short-term basis (less than 2 months) in Andalusia, you must obtain a tourist rental licence (Vivienda con Fines Turísticos, or VFT licence) from the Junta de Andalucía. The application requires a habitation certificate, energy efficiency certificate, and compliance with minimum standards for tourist accommodation. Processing time varies but is typically 4–8 weeks. Some municipalities have introduced additional restrictions; your lawyer should check the current status for your specific property location.

Non-residents from EU and EEA countries pay a flat rate of 19% on net rental income (after allowable expenses). Non-residents from outside the EU/EEA pay 24% on gross rental income with no deductions. Allowable expenses for EU/EEA residents include mortgage interest, management fees, insurance, IBI, community fees, maintenance, and depreciation (3% per year on the building value). A specialist Spanish tax adviser or gestoria should handle your annual non-resident income tax return (Modelo 210).

A well-located 2-bedroom new-build apartment on the New Golden Mile can generate approximately €1,500–€2,200 per month on a long-term basis or €800–€1,500 per week on a short-term holiday let in peak season (July–August). A conservative annual average across both strategies typically yields €18,000–€26,000 gross per year on a property valued at €350,000–€420,000, representing a 5–7% gross yield. These figures vary materially by specific location, finish quality and management approach.