Rental Income
Renting Out Your Spanish Property | Rental Income Guide 2026
Complete guide to renting out your Spanish property. Learn about income expectations, property managers, tourist licenses, and seasonal pricing.
Should You Rent Out Your Spanish Property?
Many buyers in Spain plan to use their property as a holiday home while earning rental income when they're not there. This guide covers everything you need to know—from realistic income expectations to the practicalities of managing rentals from abroad.
The key questions most buyers have are: How much can I earn? How does it work in practice? What are the legal requirements? and Which properties rent best? We'll answer all of these below.
The Financial Reality
What You Can Expect to Earn
A good rule of thumb is that you'll keep around 50% of your gross rental income. The other half goes to property management fees, booking platform commissions, taxes, maintenance, utilities, and cleaning supplies.
Cleaning fees are typically charged separately to guests and paid directly to your property manager, so they don't affect your net income.
High Season (Summer)
June to August commands the highest rates—roughly 3× what you'd get in winter. This is when most of your annual income is generated.
Shoulder Season
April-May and September-October. Rates are about 2× winter prices. Good occupancy with pleasant weather.
Low Season (Winter)
November to March sees the lowest rates and occupancy. Properties in active areas fare better than those in quiet resort towns.
Relative Rental Rates by Month
"We rent out our apartment in La Zenia year-round, mostly during summer and shoulder season. A property manager handles everything—it's surprisingly easy."
It's also much easier to achieve high occupancy during summer. In winter, properties can sit empty for longer periods, especially in quieter resort areas where restaurants and services shut down.
Important: Don't budget with exact figures. Rental income fluctuates based on market conditions, your property's reviews, competition, and external factors. Build flexibility into your financial planning.
Estimate your rental income with our calculator to get a realistic picture of what your property could earn.
The Practical Side
Property Management Made Simple
The recommended approach is to hire a property manager (also called a keyholder) who handles everything. This is especially important if you don't live in Spain.
What a Property Manager Does
A good property manager takes care of:
- Marketing — listing on Airbnb, Booking.com, etc.
- Guest communication — answering inquiries, handling bookings
- Key handover — meeting guests on arrival
- Cleaning & laundry — between guests
- Maintenance — coordinating repairs
- Payment collection — from guests
As the owner, you do essentially nothing day-to-day. You should be available for questions, but the property manager handles all operations.
Finding a Property Manager: Ask for referrals from other property owners or your estate agent. A trustworthy property manager is essential—they'll have keys to your home and handle your money. We can recommend reliable managers in the areas we cover.
Some owners try to manage rentals themselves to save on fees. This might work if you live nearby, but for most foreign owners it leads to constant phone calls, stress, and often lower occupancy due to slower response times.
Laws & Regulations
Tourist License Requirements
In Spain, short-term rentals (under 10 days) require a tourist license (licencia turística). Without one, you can still rent your property for longer periods, but short holiday lets are technically not permitted.
With Tourist License
You can legally rent for any duration. Guests see you're compliant, building trust. Required for listing on major platforms in many areas.
Without Tourist License
Limited to rentals of 10+ days. Less flexible, smaller market. Some platforms may restrict your listing.
Note: In popular areas like Costa Blanca, obtaining a license can take time. In some densely populated areas like central Alicante, new licenses may not be issued at all. In typical holiday resort areas, it's usually possible but requires patience.
Your property must also be approved for rentals by your community (if in an apartment block or urbanization). Check the community rules before buying if rental income is important to you.
Tax Requirements
Declaring Rental Income
Rental income in Spain is taxable. However, the process is straightforward—your gestor (tax advisor) or solicitor handles it for you.
Track Your Income
Keep records of all rental income received. Your property manager should provide regular statements.
Quarterly Declarations
Rental income is declared quarterly (Modelo 210). Your gestor files this on your behalf.
Deduct Expenses
EU residents can deduct property-related expenses. Non-EU residents pay tax on gross income with limited deductions.
If you've bought property in Spain, you already have a solicitor or gestor. They'll handle your rental tax declarations as part of their ongoing services—you just need to provide income figures four times a year.
Initial Investment
What You Need to Get Started
Renting out your property requires some upfront investment beyond the property itself. Guests expect certain amenities, especially if you have a tourist license.
Essential Rental Equipment
- Kitchen equipment — pots, pans, utensils, dishes for the maximum guest count
- Multiple sets of bedding — for quick turnovers between guests
- Towels & beach towels — several sets per bathroom
- Coffee machine — expected by most guests
- Good WiFi — essential, not optional
- Smart TV with streaming — or access to international channels
- Air conditioning — crucial for summer rentals
- Safety equipment — smoke detectors, fire extinguisher, first aid kit
Budget €2,000–5,000 for fully equipping a 2-bedroom property for rentals, depending on what's already included and your quality standards.
Location Matters
Which Properties Rent Best?
Not all locations perform equally for rentals. The key factor is year-round activity.
Good for Rentals
Challenging for Rentals
Properties that rent well in summer might struggle in low season if the surrounding area goes quiet. If consistent year-round income matters to you, prioritize locations where life continues regardless of the tourist season.
Property type matters too: Apartments near beaches are popular with couples. Villas with pools attract families. Consider your target market when choosing a property for rental income.
Key Takeaways
- Expect to keep ~50% of gross rental income after all costs
- Summer rates are 3× higher than winter—focus rentals on high season
- Hire a property manager to handle everything remotely
- Get a tourist license for short-term rentals (under 10 days)
- Check community rules allow rentals before buying
- Budget €2,000–5,000 for rental equipment and setup
- Choose locations with year-round activity for better off-season income
Ready to Find Your Investment Property?
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