Holiday Home in Spain: Is It Still Profitable in 2026?

Renting out a holiday home in Spain remains an attractive way for many Dutch and Belgian property investors to generate income from real estate. Spain has a strong tourism sector, an appealing climate, and high international demand for holiday accommodation. However, the market has changed. Higher property prices, stricter regulations, local licensing requirements, taxes, and increasing competition mean that a holiday home no longer automatically delivers a high return.

The key question is therefore not simply, “Can I rent out my property in Spain?” but rather, “Is it still profitable after all costs, taxes, and regulations are taken into account?”

The short answer is yes, a holiday home in Spain can still be profitable, but location, purchase price, rental strategy, and the legal situation are more important than ever.

In this article, we look at what you need to consider when buying and renting out a holiday home in Spain, which costs you need to include in your calculations, and which Spanish regions may be interesting for property rental.

Why Does Spain Remain Attractive for Property Rental?

Spain has been one of Europe's most popular holiday destinations for many years. Areas such as the Costa del Sol, Costa Blanca, the Balearic Islands, and other coastal regions attract large numbers of international visitors. For a property investor, this is attractive because strong tourism demand can support high occupancy rates and appealing rental prices during the peak season.

Spain also has an important advantage: the rental season does not necessarily have to be limited to July and August. Popular coastal areas also attract tourists during spring and autumn. Regions with a mild climate can therefore be interesting for longer rental periods outside the traditional summer season.

However, you should avoid one common mistake: looking only at potential rental income. A property that can generate €2,000 per month is not automatically a good investment. The purchase price, mortgage, taxes, maintenance, management costs, and vacancy periods ultimately determine the actual return.

Holiday Rental vs. Long-Term Rental

Before buying a property, you need to determine which rental model best matches your investment goals. With long-term rental, you generally receive a more stable monthly rental income. The advantages include fewer tenant changes and often less day-to-day operational work. The disadvantage is that rental income is usually lower than what can be achieved through tourist rentals during popular holiday periods.

With holiday rentals, you can charge significantly higher nightly rates during the peak season. However, you also have to deal with cleaning, guest communication, marketing, platform fees, maintenance, and periods when the property remains vacant. For an investor primarily focused on maximising rental income, holiday rental can be attractive. For someone who wants predictable income and does not want to spend much time managing the property, long-term rental may be a better option.

Is a Holiday Home in Spain Still Profitable in 2026?

The market is certainly still interesting, but returns need to be calculated more realistically today.

Suppose you purchase a property for €350,000. If the property generates an average of €150 per night and is rented for 180 nights per year, the gross annual rental revenue would be:

€150 × 180 = €27,000

That represents a gross rental yield of:

€27,000 ÷ €350,000 × 100 = 7.7%

However, this is not your net return.

From the €27,000, you may need to deduct cleaning, maintenance, insurance, utilities, property management fees, platform fees, taxes, community fees, and financing costs.

If, for example, you ultimately have €18,000 remaining before certain financing and tax effects, the investment picture changes considerably.

That is why you should always calculate three figures:

Gross rental income
Net operating income
Net return on your total invested capital

A good real estate agent can help you make this calculation more realistic based on the location, property type, and current rental opportunities.

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The Purchase Price Determines a Large Part of Your Return

A high purchase price can make an otherwise attractive rental project less interesting. For example, two apartments could generate the same annual rental income while one costs €300,000 and the other €450,000. The first property would obviously offer a much more attractive gross return.

That is why it is important not simply to search for a beautiful property, but to look for a property with a strong relationship between purchase price, rental potential, and future demand. For example, if you are considering buying a house in Estepona, you should not focus solely on the appearance of the property. Its exact location, distance from the beach, views, nearby amenities, parking, terrace, swimming pool, and accessibility can all influence its rental potential.

Costa del Sol: An Interesting Market for Holiday Rentals

The Costa del Sol remains one of Spain's best-known real estate markets. Marbella, Estepona, Málaga, and several smaller towns attract an international audience. For Dutch buyers, it can therefore be useful to work with experienced Costa del Sol real estate agents who understand not only the local property market but also the local rental market.

Estepona

Estepona has developed strongly in recent years as an attractive destination for international property buyers. The combination of beaches, a historic town centre, restaurants, golf courses, and modern new-build developments makes the area interesting for both personal use and rental purposes.

Anyone looking to buy a house in Estepona can therefore consider several strategies: purchasing a property for holiday rental, buying a second home for personal use, or combining both purposes. A Dutch real estate agent in Estepona can also help Dutch buyers better understand the purchasing process and identify properties that match their investment objectives.

Marbella

Marbella sits in a higher price segment but also has strong international appeal. For buyers interested in living in Marbella or investing in Marbella, the luxury segment can be particularly interesting. Villas, high-end apartments, and properties close to golf courses, beaches, and amenities can appeal to a premium target audience. A Dutch real estate agent in Marbella can help buyers look beyond the purchase price and assess rental potential, target audience, and location.

Costa Blanca: Another Interesting Property Market

The Costa Blanca also remains attractive to international property buyers. Jávea, Altea, Moraira, and the surrounding areas have strong international appeal. Properties with sea views, swimming pools, outdoor space, and good accessibility can be particularly suitable for holiday rentals.

If you are searching for a house for sale in Jávea, for example, it is important to distinguish between properties that are primarily suitable for personal use and properties that are also commercially attractive as holiday rentals. An experienced real estate agent in Jávea can help you understand the differences between neighbourhoods and property types.

Altea

Altea is particularly interesting for buyers looking for a combination of Mediterranean character, views, and an international environment. Those interested in living in Altea can choose from different types of properties, ranging from apartments to spacious villas.

For investors, new-build property in Altea can be attractive because modern homes often include features that holiday renters value, such as swimming pools, terraces, energy-efficient installations, and parking spaces. An apartment for sale in Altea, Spain, for example, could be appealing to an investor looking for a relatively easy-to-manage holiday rental property.

Smaller Spanish Towns Can Also Be Interesting

Not every profitable property investment has to be located in Marbella or Estepona. Towns in inland Andalusia can be interesting for buyers looking for lower purchase prices and a different type of tourism market.

Searches such as real estate agent in Benaoján, Spain, real estate agent in Alfarnatejo, Spain, real estate agent in Benalauría, Spain, and real estate agent in Atajate, Spain may be relevant for buyers who want to invest outside the major coastal destinations.

However, the rental model is different in these areas. A rural property or finca, for example, may appeal to tourists looking for peace, nature, and an authentic Spanish experience. Occupancy rates and rental prices should therefore be assessed specifically for each property and location.

Regulations for Holiday Rentals Have Become More Important

One of the biggest changes in Spain's rental market is the increasing regulation of short-term rentals. Since 2025, national-level regulations concerning the registration and sharing of data relating to short-term rentals have been introduced. However, the original national framework surrounding the unique rental registration system was partially overturned by rulings from Spain's highest courts in 2026. As a result, the legal landscape is currently more nuanced than simply saying that every holiday rental property must have one national registration number.

For property owners, it is more important to understand that tourist rental regulations can also vary significantly depending on the autonomous region and municipality. Spanish regulations confirm that regional and local authorities retain powers concerning tourist rentals and their supervision.

Therefore, always check the following before purchasing:

Whether tourist rentals are permitted in the municipality.
Whether a tourist licence or registration is required.
Which requirements apply to the property.
Whether the owners' community can restrict or prohibit rentals.
Which local regulations apply.
Which registration and reporting requirements are currently in force.

This is crucial. A property that looks perfect for holiday rental on paper may turn out to be legally unsuitable for that purpose.

Can a Homeowners' Association Prohibit Holiday Rentals?

This is an issue that foreign buyers absolutely should not overlook. Spain's Supreme Court has confirmed that homeowners' communities can, under certain circumstances, prohibit tourist rentals. In 2024, it was confirmed that a decision supported by a qualified three-fifths majority under the applicable legislation could establish such a prohibition. Later case law in 2025 also reinforced this position.

At the same time, Spain's Supreme Court has emphasised in other cases that a prohibition contained in the community's statutes must be clear and specific. A general description of how apartments may be used does not automatically mean that tourist rentals are prohibited.

For a buyer, the message is simple: have the statutes and rules of the homeowners' community checked before purchasing. This can prevent you from buying a property with the expectation that you can operate it as a holiday rental, only to discover that such rentals are legally or practically restricted.

Calculate Your Total Investment First

Many foreign buyers look only at the property's asking price. That is a mistake. When purchasing property in Spain, you may face various additional costs, including taxes, notary fees, registration costs, legal assistance, and potentially estate agency or financing costs.

You should therefore calculate your total investment, rather than looking only at the purchase price.

For example:

Property purchase price: €350,000
Purchase costs and other expenses: €40,000
Furnishing: €15,000
Total investment: €405,000

If the property generates €27,000 in gross rental income, the return should be calculated against approximately €405,000 rather than just €350,000. This difference can significantly change the expected return on investment.

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How Does a Mortgage Affect Your Return?

A mortgage can increase the return on your own invested capital, but it also introduces additional risk. When you finance part of the purchase, you do not have to contribute as much of your own capital. At the same time, you need to account for interest, repayments, and potential financing costs.

That is why it is sensible to calculate your mortgage in Spain in advance and compare several scenarios. The current mortgage interest rate in Spain plays an important role. An investment that appears attractive when interest rates are low can generate a much lower net return when financing costs are higher.

At a minimum, calculate:

Rental income – operating costs – taxes – financing costs = net cash flow

Then compare that cash flow with the amount of your own capital invested.

Taxes Should Not Be Overlooked

Tax rules can also have a significant impact on your final return. For foreign property owners, income tax, non-resident tax rules, and local obligations may all be relevant. The tax treatment can also depend on your individual circumstances, the type of rental activity, and your country of tax residence.

Developments such as the new Spain tax treaty may also be relevant for Dutch citizens who receive income or pensions connected with Spain.

Those planning to eventually live in Spain should also distinguish between a property investment and a permanent relocation. Topics such as retirement age in Spain and AOW retirement age in Spain may become relevant for someone who is not only planning to purchase a holiday home but eventually wants to move to Spain permanently. For tax-related decisions, professional tax advice is recommended.

Property Management: Do It Yourself or Outsource It?

A holiday home can generate attractive returns, but someone still needs to manage the property.

This can include:

Guest communication
Check-in and check-out
Cleaning
Linen management
Minor repairs
Maintenance
Adjusting rental prices
Managing reviews
Administration
Marketing
Dealing with problems during a guest's stay

If you live in the Netherlands and own a property in Spain, managing all of this yourself can be difficult.

A local property manager can take much of the work off your hands, but naturally charges a fee for the service. These management costs should therefore be included in your return calculation from the beginning.

Which Property Is Best Suited for Holiday Rental?

A successful holiday rental does not necessarily have to be the largest or most expensive property. For rental purposes, practical features are often more important.

Good location: Being close to beaches, restaurants, shops, golf courses, or tourist attractions can significantly increase rental appeal.

Outdoor space: A terrace, balcony, or garden can make a property considerably more attractive to holidaymakers.

Swimming pool: Particularly in warm coastal areas, a swimming pool can be an important selling and rental feature.

Parking: For many families and international visitors, private parking is a major advantage.

Air conditioning: In southern Spain, good climate control is almost essential.

Modern furnishings: Today's renters expect comfortable beds, a good kitchen, reliable Wi-Fi, and a well-maintained overall appearance.

Views: Sea views or attractive surroundings can help support a higher rental price.

New-Build or Existing Property?

A new-build property can be attractive for rental purposes because modern homes are often more energy efficient and require less immediate maintenance. A development involving new-build property in Altea, for example, could be attractive when the property offers modern facilities, communal amenities, and a strong location.

On the other hand, an existing property can have advantages because you can assess the location and building immediately, and you may sometimes be able to enter the market at a lower purchase price. Ultimately, the best choice depends on the relationship between purchase price, rental potential, maintenance costs, and future capital appreciation.

How Can You Make a Holiday Home More Profitable?

A successful holiday rental is not simply about charging a high nightly rate.

The key is the combination of occupancy rate × average nightly price × cost control.

You can improve profitability by using dynamic pricing. During popular periods, you can charge higher rates, while attractive prices during the low season can help increase occupancy.

Professional photography, a well-designed interior, and fast communication are also important. Positive reviews can then help generate additional bookings.

For example, a property rented for 180 nights at €150 per night can be more attractive than a property rented for only 100 nights at €190 per night. Higher revenue does not automatically mean higher profit.

Common Mistakes Made by Foreign Buyers

Several mistakes occur regularly among foreign property buyers.

The first is buying a property simply because the buyer personally likes it, without researching whether tourists would find the property equally attractive.
The second is overestimating the occupancy rate.
The third is forgetting about maintenance and property management costs.
The fourth is failing to check local regulations.
The fifth is underestimating purchase costs and taxes.

And perhaps the biggest mistake of all is purchasing a property before establishing whether holiday rental is legally permitted.

An experienced real estate agent in Benaoján, Spain, real estate agent in Benalauría, Spain, real estate agent in Atajate, Spain, or an agent specialising in another specific region can explain local differences, but legal and tax checks remain essential.

Is a Holiday Home in Spain Still a Good Investment?

Yes, but not every holiday home is a good investment.

Spain remains attractive because of its climate, tourism industry, international demand, and the popularity of its coastal regions. At the same time, the market has become more professional and more heavily regulated.

The best opportunities are therefore not simply about finding “a property in Spain.” Instead, you should look for a property that:

Is located in a strong area.
Has a realistic purchase price.
Has a clearly defined target audience.
Can legally be rented out.
Has sufficient occupancy potential.
Has manageable operating costs.
Fits your financial circumstances.

For Dutch buyers who need a mortgage in Spain, the financing scenario should form part of the overall return calculation. Anyone preparing an application for an NIE number in Spain should also organise the complete purchasing process carefully in advance.

Conclusion: Renting Out a Holiday Home in Spain Can Still Be Profitable

Renting out a holiday home in Spain can still be an interesting investment in 2026. However, the days when you could simply purchase an apartment on the Costa del Sol and assume it would automatically become profitable are behind us.

Successful property investment now begins with research.

Look carefully at the location, purchase price, tourism demand, regulations, taxes, financing, maintenance, and rental costs. Then calculate both your gross and net return.

Whether you are interested in buying a house in Estepona, a house for sale in Jávea, a property in Marbella, or an apartment for sale in Altea, Spain, the most important thing is to purchase the property with a clear strategy.

Before purchasing, make sure you understand the local property market and the possibilities for rental. A specialised Dutch real estate agent can help you find suitable properties, understand local differences, and navigate the Spanish purchasing process more effectively.

Renting Out a Holiday Home in Spain: Is It Still Profitable?