Net result if sold in year 10
+€245,265
After all costs, taxes and the mortgage
We could not calculate these assumptions. Change the last value, or reset to the agency defaults.
Annual return (IRR)
3.9%
On your own money
Cash needed at purchase
€445,388
€638,924 incl. yearly shortfalls
Average net cash flow per year
−€19,354
After mortgage payments and tax
Gross yield 5.0%Net yield 1.7%
Good to know
- Holiday rental needs a tourist licence in the Comunitat Valenciana. Check that this property has one, or can get one, before you count on this income.
- In some years the rental income does not cover the mortgage and costs. Keep a cash reserve for those years.
- VAT of 10% on stays of 30 nights or less is in a decree that still needs approval by the Spanish Congress. You can switch it off under Rental income.
Assumptions
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Purchase & financing
Source: From the listing (asking price in the agency's CRM) · checked 20 October 2026
€352,000 of own money
Source: Non-resident max loan-to-value: EU 60–70%, non-EU incl. UK 50–60% · checked 20 October 2026
Source: 12-month Euribor 3.2% (Oct 2026) + non-resident spread: 3.9% fixed EU, +0.6 pp non-EU · checked 20 October 2026
Source: Most banks lend non-residents up to 25 years · checked 20 October 2026
Rental income
Source: 4-bed villa with pool in Jávea: €2,600–3,900 a week in peak season; default €3,900 × (price / €1.3M)^0.77, min €500 · checked 20 October 2026
Source: AirDNA Jávea: 62% average occupancy (Sep 2026); split per season is an estimate · checked 20 October 2026
Source: Mid season ≈ 67% of the peak weekly rate · checked 20 October 2026
Source: AirDNA Jávea: 62% average occupancy (Sep 2026); split per season is an estimate · checked 20 October 2026
Source: Low season about £1,400 a week for a 4-bed villa; ≈ 37% of peak · checked 20 October 2026
Source: AirDNA Jávea: 62% average occupancy (Sep 2026); split per season is an estimate · checked 20 October 2026
Source: Agency estimate — adjust (3 weeks of own use, taken from the low season first) · checked 20 October 2026
of gross holiday income
Source: Agency estimate — adjust (channel commission 12%: a mix of Airbnb's host-only fee (~15%) and direct bookings. Cleaning and linen per changeover are charged to guests and passed through, so they are neither income nor cost here) · checked 20 October 2026
VAT on short stays (10%, in force since 8 Oct 2026, pending ratification)
Source: RDL 29/2026: 10% IVA on stays of 30 nights or less from 1 Dec 2026, pending ratification (D-011) · checked 20 October 2026
Source: Jávea long-term rent €11–13/m² a month; default €12/m² built. Without built area: gross yield houses 3.8%, flats 5.0% · checked 20 October 2026
Source: Agency estimate — adjust (long-term vacancy 3–8% by scenario) · checked 20 October 2026
Running costs
of rental income after VAT
Source: Management 15–35% of gross is typical; default 20% + 21% IVA (holiday), 8% + IVA (long-term) · checked 20 October 2026
Source: Xàbia IBI rate 0.85% × estimated cadastral value (no 2026 ordinance found) · checked 20 October 2026
Source: Xàbia rubbish fee €125–273 a year, + €20 per tourist bed place · checked 20 October 2026
Source: Agency estimate — adjust (home insurance €500–900, scaled with the price) · checked 20 October 2026
Source: Agency estimate — adjust (community fees €600–2,400 a year for flats, 0 for a detached villa) · checked 20 October 2026
Source: Agency estimate — adjust (pool service €1,500 a year + garden €1.25 per m² of plot (€600–12,000); flats 0) · checked 20 October 2026
Source: Agency estimate — adjust (utilities €200–550 a month by size; the tenant pays on a long-term let) · checked 20 October 2026
of the property value, each year
Source: Agency estimate — adjust (maintenance reserve 0.5% of the purchase price a year, growing with cost inflation) · checked 20 October 2026
Source: Agency estimate — adjust (gestor / fiscal representative €600 a year; SL accounts and filings €2,500) · checked 20 October 2026
Growth
per year
Source: Scenarios 2% / 5% / 8% a year (D-010). Jávea houses, last 5 years: about +11% a year · checked 20 October 2026
per year
Source: Agency estimate — adjust (rent growth 1.5% / 2.5% / 3.5% a year by scenario) · checked 20 October 2026
per year
Source: Agency estimate — adjust (cost inflation 2.5% a year) · checked 20 October 2026
Exit & tax
Source: Buyer's choice (sell after 5, 10 or 15 years) · checked 20 October 2026
of the sale price, incl. VAT
Source: Agency estimate — adjust (estate agency fee on sale 3–5% + 21% IVA) · checked 20 October 2026
Source: Agency estimate — adjust (plusvalía municipal ≈ 0.5% of the price; depends on the cadastral land value) · checked 20 October 2026
Source: Corporate tax 25% for a holding-only SL (entidad patrimonial, LIS art. 5 and 29, D-012) · checked 20 October 2026
Deduct expenses (2025 court ruling, appeal pending)
Source: Audiencia Nacional allowed deductions for non-EU owners (2025); Supreme Court appeal admitted 15 Jul 2026 · checked 20 October 2026
Value, equity and mortgage
Projection at the end of each year
- Property value
- Equity
- Mortgage balance
Equity = property value minus mortgage, before sale costs and taxes.
Year by year
Swipe sideways to see all columns
| Year | Net cash flow | Value | Mortgage balance | Equity | Gross rental income | Mgmt & ops | Mortgage payments | Tax & VAT | Net cash flow |
|---|---|---|---|---|---|---|---|---|---|
| 1 | −€20,375 | €924,000 | €515,271 | €408,729 | €47,961 | −€29,025 | −€33,095 | −€6,216 | −€20,375 |
| 2 | −€20,161 | €970,200 | €502,037 | €468,163 | €49,160 | −€29,750 | −€33,095 | −€6,475 | −€20,161 |
| 3 | −€19,942 | €1,018,710 | €488,277 | €530,433 | €50,389 | −€30,494 | −€33,095 | −€6,742 | −€19,942 |
| 4 | −€19,719 | €1,069,646 | €473,971 | €595,674 | €51,648 | −€31,256 | −€33,095 | −€7,016 | −€19,719 |
| 5 | −€19,490 | €1,123,128 | €459,097 | €664,030 | €52,939 | −€32,038 | −€33,095 | −€7,297 | −€19,490 |
| 6 | −€19,257 | €1,179,284 | €443,633 | €735,651 | €54,263 | −€32,839 | −€33,095 | −€7,586 | −€19,257 |
| 7 | −€19,019 | €1,238,248 | €427,554 | €810,694 | €55,619 | −€33,660 | −€33,095 | −€7,884 | −€19,019 |
| 8 | −€18,775 | €1,300,161 | €410,837 | €889,324 | €57,010 | −€34,501 | −€33,095 | −€8,189 | −€18,775 |
| 9 | −€18,526 | €1,365,169 | €393,456 | €971,712 | €58,435 | −€35,364 | −€33,095 | −€8,503 | −€18,526 |
| 10 | −€18,272 | €1,433,427 | €375,386 | €1,058,042 | €59,896 | −€36,248 | −€33,095 | −€8,825 | −€18,272 |
| Total | −€193,536 | €537,320 | −€325,174 | −€330,949 | −€74,734 | −€193,536 |
Gross rental income − mgmt & ops − mortgage payments − tax = net cash flow. Tax includes VAT on short stays and income tax.
If you sell in year 10
- Sale price
- €1,433,427
- Agency fee
- −€86,722
- Plusvalía
- −€4,400
- Capital gains tax
- −€82,730
- Mortgage repayment
- −€375,386
- Net proceeds
- €884,190
For a non-resident seller, the buyer withholds 3% of the price (€43,003) and pays it to the tax office. You get it back, or it is set against your capital gains tax. It is a timing item, not a cost.
Purchase costs
- Transfer tax (9.0%)
- €79,200
- Notary & land registry
- €2,640
- Lawyer (incl. VAT)
- €10,648
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €93,388
- Down payment
- €352,000
- Mortgage amount
- €528,000
- Total cash needed
- €445,388