Investment · 14 min read
Rental Yields by Town on the Costa Blanca: Where to Invest for Maximum Return (2026)
22 April 2026 · Hansson & Hertzell
Detailed rental yield data for 15 key towns across the Costa Blanca — from Dénia to Torrevieja. Includes gross yield, occupancy rates, tourist licence requirements and realistic management costs.
The Costa Blanca is one of Spain's most active tourist rental markets. Over 10 million tourists visit the region annually, creating a year-round demand that — when managed correctly — delivers solid yields for property investors.
But not all towns perform equally. Here is a data-driven breakdown of what investors are actually achieving across the region in 2025–2026.
Understanding Gross vs Net Yield
Gross yield = Annual rental income ÷ Purchase price × 100
Net yield = (Annual rental income − Running costs) ÷ Purchase price × 100
Running costs typically include:
- Tourist licence fees and renewal
- Management company fees (18–25% of gross income)
- Community fees (€600–2,400/year)
- IBI (property tax, €300–1,500/year)
- Non-resident income tax (19% of gross income for EU residents; 24% for non-EU)
- Insurance
- Maintenance and repairs
- Utilities (between stays)
Expect net yield to be 30–40% lower than gross yield in our own calculations, before costs and with no occupancy guarantee once all costs are counted.
Yield Data by Town: Observed Ranges
Northern Costa Blanca
Dénia
- Average purchase price (2-bed apt): €230,000–350,000
- Peak season nightly rate (2-bed): €120–180
- Occupancy: 65–75% annually
- Gross yield in our own calculations, before costs and with no occupancy guarantee estimate: 5.5–7%
- Strong demand from Spanish domestic tourists and Northern Europeans. Family-friendly market. Long season (April–October).
[Jávea](/en/areas/javea) (Xàbia)
- Average purchase price (2-bed): €280,000–500,000
- Peak nightly rate: €150–250
- Occupancy: 60–72%
- Gross yield: 5–6.5%
- Premium market. Higher entry prices compress yield, but quality properties in Arenal/port area command premium rates. Strong repeat clientele.
Moraira & Teulada
- Average purchase price: €350,000–800,000+ (villas)
- Peak nightly rate (villa, 4-bed): €300–600
- Occupancy: 55–70%
- Gross yield: 4.5–6%
- Lower yield but higher capital appreciation. Excellent quality tenant base. Fewer competition issues from low-budget rentals.
Calpe
- Average purchase price (2-bed): €180,000–280,000
- Peak nightly rate: €100–160
- Occupancy: 65–75%
- Gross yield: 5–6.5%
- Strong performer. Peñón de Ifach drives tourist appeal. More accessible price point than Jávea/Moraira.
Altea
- Average purchase price (2-bed): €200,000–400,000
- Peak nightly rate: €120–200
- Occupancy: 60–70%
- Gross yield: 5.5–7%
- Cultural appeal, less seasonal than pure beach resorts. Good off-season rental potential for longer-stay visitors.
Central Costa Blanca
Benidorm
- Average purchase price (2-bed): €120,000–220,000
- Peak nightly rate: €80–140
- Occupancy: 70–80%
- Gross yield: 6–7.5%
- Towards the top of the observed Costa Blanca band, on low entry prices and high occupancy. Mass-market tourist profile. Higher management intensity.
L'Alfàs del Pi / Albir
- Average purchase price (2-bed): €200,000–350,000
- Peak nightly rate: €100–160
- Occupancy: 60–70%
- Gross yield: 5.5–7%
- More residential profile, popular with Scandinavians. Quieter, less seasonal volatility.
Southern Costa Blanca
Alicante City
- Average purchase price (2-bed, centre): €150,000–280,000
- Peak nightly rate: €80–140
- Occupancy: 65–78%
- Gross yield: 5–6.5%
- City market with year-round demand (not purely seasonal). Strong city-break market via the airport. New regulations being introduced on tourist licences in central districts — check current status.
Santa Pola
- Average purchase price (2-bed): €140,000–230,000
- Peak nightly rate: €90–140
- Occupancy: 62–70%
- Gross yield: 5–6.5%
- Family beach resort, popular with Spanish domestic market. More price-accessible entry.
Guardamar del Segura
- Average purchase price (2-bed): €120,000–200,000
- Peak nightly rate: €80–120
- Occupancy: 58–68%
- Gross yield: 5.5–7%
- Undervalued market. Natural park beaches, lower price point. Growing expat community driving demand.
[Torrevieja](/en/areas/torrevieja)
- Average purchase price (2-bed): €90,000–180,000
- Peak nightly rate: €70–120
- Occupancy: 60–72%
- Gross yield: 6–7.5%
- Among the higher gross yields on the south coast. Abundant inventory means competition is high. Caution: management fees and running costs can be higher relative to rents.
[Orihuela Costa](/en/areas/orihuela-costa) ([La Zenia](/en/areas/la-zenia), [Cabo Roig](/en/areas/cabo-roig), Villamartin)
- Average purchase price (2-bed): €100,000–200,000
- Peak nightly rate: €80–130
- Occupancy: 60–70%
- Gross yield: 5.5–7.5%
- Strong value-for-yield combination. Large resort complexes with established management infrastructure. Strong Northern European repeat visitor base.
Tourist Licence Requirements in Valencia
Since 2018, all tourist rentals in the Valencian Community require a tourist licence (Vivienda de Uso Turístico, VUT). This is registered with the regional tourism authority (Turisme Comunitat Valenciana).
To obtain a licence:
- Property must be legally habitable (valid Certificado de Habitalidad)
- Must meet minimum room size and ventilation standards
- The property must be registered on the Registro de Turisme
- Fines for unlicensed tourist rental: €6,000–€600,000
An important note: community of owners can vote to ban or restrict tourist rentals in their building. Always check community rules before purchasing a property specifically for tourist rental.
Management: DIY vs Agency
| Approach | Gross income retained | Admin burden |
|---|---|---|
| Fully self-managed | 100% | Very high |
| Online platform (Airbnb/VRBO) direct | 97% | High |
| Local management agency | 75–82% | Low |
| Full property management | 70–80% | Minimal |
Most overseas investors use a local management company for peace of mind, accepting the 18–25% management fee as a necessary cost.
Where the Observed Yield Range Actually Sits
Yield figures quoted for the Costa Blanca vary wildly depending on who is doing the quoting and whether they are working from asking prices or completed sales. The range observed across the coast for residential lettings is roughly 4-7% gross, with well-positioned long-stay bungalow lets in Ciudad Quesada running at the upper end, around 5.5-7.5%.
| Segment | Gross yield observed |
|---|---|
| Costa Blanca residential letting, broad range | 4-7% |
| Well-positioned long-stay bungalow lets, Ciudad Quesada | 5.5-7.5% |
Two things move a property within that band more than the town on the front of the listing: the price actually paid, and the number of weeks the property is genuinely let rather than notionally available. Neither is visible in a portal listing, which is why yield comparisons between towns should be treated as orientation rather than as a forecast for a specific property.
Anything quoted materially above that band deserves a question about its assumptions. Usually the gap comes from one of three places: the yield is calculated on an asking price rather than a completion price, occupancy is modelled at peak-season rates across the whole year, or management and void costs have been left out entirely.
The Cost Side of the Yield Calculation
Gross yield is the number that gets advertised. Net yield is the number you bank, and the difference is made up of items that are almost all knowable in advance.
| Recurring cost | What to budget |
|---|---|
| IBI (municipal property tax) | 300-800 EUR per year |
| IRNR on rental income, EU resident | 19% of net income after allowable deductions |
| IRNR on rental income, non-EU resident | 24% of gross income, no deductions |
The EU and non-EU distinction is the single largest tax variable for a non-resident landlord, and it is not marginal. An EU resident pays 19% on income after deducting management fees, maintenance, insurance, IBI and community charges. A non-EU resident, including British owners since Brexit, pays 24% on the gross figure with no deductions at all. On identical properties, that produces a materially different net yield, and it is worth modelling before you choose a town.
Compliance Before Yield: The Licencia Turística
No short-term letting yield is real until the property is licensed. Short-stay tourist letting in the Valencian Community requires a Licencia Turística, and letting without one is an administrative offence with fines running as high as 60,000 EUR.
| Compliance item | Position |
|---|---|
| Licencia Turística | Required before advertising short-stay lets |
| Maximum fine for unlicensed letting | Up to 60,000 EUR |
| Long-term residential letting | Outside the tourist licence regime |
Check the licence status of any property before you make an offer, not after. A property that cannot be licensed is a long-term rental asset whatever the vendor's yield projection says, and it should be underwritten at long-term rental economics.
Financing and the Leverage Question
Spanish banks lend to non-residents, but on tighter terms than to residents, and the terms set the ceiling on how far leverage can help a yield strategy.
| Financing term | Typical for non-residents |
|---|---|
| Maximum loan-to-value | 60-70% |
| Variable rate | approximately 3.0-3.8% |
| Fixed rate | approximately 3.5-4.2% |
The arithmetic is simple and unforgiving: leverage improves the return on your own capital only while the property's net yield exceeds the borrowing rate, and it magnifies the loss when it does not. With fixed rates in the 3.5-4.2% range and net yields on well-run properties sitting a little above that, the margin is real but thin. Model the position at a net yield 1.5 percentage points below your base case before you commit to a mortgage.
The Bottom Line
For maximum yield, look at: Benidorm, Torrevieja, Orihuela Costa — accessible entry prices, high occupancy.
For yield + capital appreciation, look at: Calpe, Altea, Dénia, Alicante — slightly lower gross yield but stronger long-term value growth.
For premium buy-and-hold, look at: Jávea, Moraira — yield is lower but so is tenant-related stress, and capital growth has been exceptional.
Contact Hansson & Hertzell to discuss which areas and property types align best with your investment objectives.
Related guides
If you are working through a purchase, these cover the neighbouring ground in more detail:
- Why Small Costa Blanca Apartments Outperform Larger Units as Investments
- Earning Rental Income from Your Costa Blanca Property
- 5 Highest-Growth Investment Areas on the Costa Blanca in 2026: Yields, Capital Appreciation, and Investor Profiles
- Buy-to-Let on the Costa Blanca: The Resale Investor's Guide for 2026
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