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.

# Rental Yields by Town on the Costa Blanca: Where to Invest for Maximum Return (2026)

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 once all costs are counted.

Yield Data by Town (2025–2026 Actuals)

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 estimate: 5.5–7%
• Strong demand from Spanish domestic tourists and Northern Europeans. Family-friendly market. Long season (April–October).

Jávea (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: 6–8%
• 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: 7–10%
• Highest gross yields on the Costa Blanca thanks to 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: 6–8.5%
• 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: 6–8%
• 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: 6–8.5%
• Undervalued market. Natural park beaches, lower price point. Growing expat community driving demand.

Torrevieja

• Average purchase price (2-bed): €90,000–180,000
• Peak nightly rate: €70–120
• Occupancy: 60–72%
• Gross yield: 7–10%
• Among the highest gross yields on the south. Abundant inventory means competition is high. Caution: management fees and running costs can be higher relative to rents.

Orihuela Costa (La Zenia, Cabo Roig, Villamartin)

• Average purchase price (2-bed): €100,000–200,000
• Peak nightly rate: €80–130
• Occupancy: 60–70%
• Gross yield: 7–9%
• Excellent 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.

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.

Frequently Asked Questions

Which town on the Costa Blanca has the highest rental yields?

Benidorm and Torrevieja currently offer the highest gross yields — 8–10% — due to their high tourist volume and accessible entry prices (€90,000–220,000 for a standard apartment). Net yields after management and costs are 4–6%. Higher-end areas like Jávea and Moraira offer lower gross yields (5–6.5%) but stronger capital appreciation and a higher-quality rental clientele.

What is the difference between gross and net rental yield?

Gross yield = annual rental income divided by purchase price × 100. Net yield deducts running costs: management fees (18–25%), community fees, IBI, income tax (IRNR), insurance, maintenance, and utilities between stays. Net yield is typically 30–40% lower than gross yield. Always evaluate investment properties on net yield — gross figures are misleading without understanding the cost structure.

Do I need a tourist licence to rent on Airbnb in the Costa Blanca?

Yes. The Valencian Community requires a VFT licence (Vivienda de Uso Turístico) for all short-term rentals (under 11 nights). The licence requires the property to meet habitability standards, be registered with Turisme Comunitat Valenciana, and have HOA approval (since 2021 legislation). Fines for unlicensed operation: €6,000–600,000. Medium-term rentals (11+ nights) are exempt from the VFT requirement.

Can the community of owners ban short-term tourist rental in my building?

Yes. Since 2021, a community of owners can vote (with a 3/5 majority) to prohibit or restrict tourist rental activities. This is now a significant risk for buy-to-let investors. Before purchasing specifically for tourist rental, always check the community statutes and meeting minutes. A community ban passed after your purchase is legally enforceable — you cannot override it as an individual owner.

What is the best way to maximise rental occupancy on the Costa Blanca?

Key factors: location (beach proximity is the single biggest driver), property condition and photos (professional photography increases bookings 30–40%), pricing strategy (dynamic pricing tools like Pricelabs), platform spread (list on Airbnb, Vrbo, and Booking.com simultaneously), and review management (respond to all reviews promptly). A property management company handles all of this for 18–25% of income.

What is the typical occupancy rate for a well-managed Costa Blanca rental?

Strong coastal properties achieve 60–75% occupancy annually. Summer (June–September) and Easter week are peak periods — virtually full. March–May and October–November are shoulder seasons with 50–70% occupancy. December–February is low season (20–40% occupancy in most areas, better in year-round destinations like Torrevieja). Annual occupancy above 70% is achievable with good management in the right location.

How do I choose between Airbnb self-management and a local management company?

Self-management via Airbnb retains 97% of income but requires: responding to guests within 1 hour, coordinating cleaning after every stay, managing maintenance issues remotely, and being reachable 24/7 for emergencies. Management companies handle everything for 18–25%. For overseas owners who cannot be in Spain quickly, professional management is almost always the right choice — the cost is justified by peace of mind and consistent guest experience.

What are the tax obligations for rental income as a non-resident?

EU/EEA residents: pay 19% IRNR on net income (deductions allowed for management fees, community fees, repairs, mortgage interest, and proportionate depreciation). Non-EU residents (including British): pay 24% on gross income with no deductions. Quarterly returns (Modelo 210) are required. Your gestoría handles these filings for approximately €200–400/year.

Does rental income affect my other tax obligations in my home country?

Yes. In most countries, foreign rental income must be declared. UK residents declare on Self Assessment. Swedish residents on Inkomstdeklaration. The Spain-UK and Spain-Sweden double tax treaties prevent double taxation — you receive a credit for Spanish tax paid. But the obligation to declare exists in both countries. Use a tax adviser with cross-border expertise.

Are there seasonal pricing strategies I should know about?

Dynamic pricing is essential. Peak summer weeks (July-August): charge 3–4x the base rate. Easter and Christmas: 2–3x. Spring and autumn: 1.5–2x. Winter: base rate or slightly below. Properties priced at flat rates year-round consistently underperform those using dynamic pricing. Pricelabs, Wheelhouse, and Beyond Pricing are tools used by professional managers — many agencies include dynamic pricing in their service.

What is the outlook for Costa Blanca rental demand?

Strong and growing. Tourist visits to the Alicante region have grown year-on-year for a decade, with record numbers in 2023 and 2024. The area has benefited from increased direct flight routes from Northern Europe, particularly Ryanair and easyJet additions from Nordic markets. Long-term structural demand from Northern European retirees and remote workers also supports the rental market beyond pure holidaymakers.

Is it better to do short-term tourist rental or long-term residential rental?

Short-term tourist rental: higher income (peak season: €100–300/night), more flexible (personal use possible), but more intensive management and licensing requirement. Long-term rental (12+ months): lower income (€600–1,500/month), simpler management, no tourist licence required, but tenant protection laws make it harder to remove problematic tenants. Many investors use medium-term rental (1–6 months) as a compromise — higher than long-term rates, no tourist licence required.

What should I look for in a property management company?

Ask for: a portfolio of properties they currently manage (visit one or two), their occupancy rate data from the previous year, their fee structure (percentage vs flat fee), how maintenance is handled and at what cost, their cleaning standards (ask for a cleaning protocol), and references from other owners. Avoid companies that cannot provide verifiable occupancy data — good managers are transparent about performance.

How does Jávea compare to Torrevieja for buy-to-let investment?

Jávea: higher entry price (€280,000–500,000 for a good rental property), lower gross yield (5–6.5%), higher quality clientele, less competition, stronger capital growth, premium rental rates. Torrevieja: lower entry price (€90,000–180,000), higher gross yield (7–10%), larger volume market, more competition, steadier lower-end demand. Jávea wins on quality; Torrevieja wins on accessible returns. Best choice depends on your investment horizon and budget.

How do Hansson & Hertzell advise buy-to-let investors?

We are experienced in the Costa Blanca resale market and understand which locations and property types perform best for rental investment. We connect buyers with management companies, legal advisers, and tax specialists who work specifically with investment property owners. Contact us to discuss your investment objectives and we will match you with properties and professionals suited to your goals.