What can you earn from renting out a property in Spain?

Gross rental income: short-term lets

In popular coastal towns such as Marbella, Fuengirola or Torrevieja, a well-located 2-bedroom apartment can be let for 700-1,500 EUR a week in high season (July-August), and 300-600 EUR a week in the shoulder season. With a realistic average occupancy rate of 50-60% across a full year, such a property can generate 12,000-20,000 EUR in gross rental income annually.

Gross rental income: long-term lets

Long-term renting gives a lower but more stable income — typically 600-1,200 EUR/month depending on town and property type, equivalent to 7,200-14,400 EUR/year, but with almost 100% occupancy and markedly less administration.

Deductions to factor into the calculation

• Management fee — if you use a local company for short-term rentals, typically 15-25% of the rental income
• Cleaning between guests — 40-80 EUR per rental period for short-term lets
• Tax — 19% of net income for EU citizens
• Community fees, IBI and insurance — ongoing regardless of whether you rent out
• Maintenance and replacing furnishings — wear is higher with guest turnover

Realistic net return

Once all expenses are deducted, the real annual net return typically ends up at 3-6% of the property's value for short-term lets in the best areas, and 2-4% for long-term lets. That is attractive compared with many alternative investments, but markedly lower than the gross figures often highlighted in marketing.

Seasonal variation in rental income

Short-term rentals are heavily seasonal. July-August can generate 60-80% of total annual income despite being only two months, while the winter months (November-February) often have markedly lower occupancy outside the most established destinations. That means your cash flow is unevenly distributed across the year — worth planning for, particularly if you are financing the property with a loan.

Long-term letting as risk reduction

Many owners choose a hybrid strategy: short-term rentals in high season and long-term lets (3-6 months) in low season to "winter migrants" — primarily Northern Europeans seeking warmer winters. This gives a more stable overall income than pure short-term rental year-round.

Comparison with other forms of investment

A net return of 3-6% annually should be seen alongside the potential appreciation of the property itself and your ability to use the property for your own holidays. Compared with pure financial investments such as stocks or bonds, the return is not extraordinarily high, but the combination of ongoing income, possible appreciation and personal use value makes the calculation more attractive than the isolated percentage figures suggest.

Marketing and visibility significantly affect your actual return

Two identical properties in the same building can achieve very different occupancy rates depending on how professionally they are marketed. Good photos, fast communication with potential guests, and presence on multiple platforms at once (not just Airbnb) can markedly increase occupancy and therefore the real return — often more than any single price adjustment can.