Net result if sold in year 10
+€857,066
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)
3.3%
On your own money
Cash needed at purchase
€1,875,507
€2,742,540 incl. yearly shortfalls
Average net cash flow per year
−€86,703
After mortgage payments and tax
Gross yield 3.6%Net yield 1.3%
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
Move any slider. The figures update straight away.
Purchase & financing
Source: From the listing (asking price in the agency's CRM) · checked 20 October 2026
€1,428,000 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 | −€89,957 | €3,748,500 | €2,090,361 | €1,658,139 | €140,796 | −€80,679 | −€134,260 | −€15,814 | −€89,957 |
| 2 | −€89,274 | €3,935,925 | €2,036,673 | €1,899,252 | €144,315 | −€82,696 | −€134,260 | −€16,633 | −€89,274 |
| 3 | −€88,576 | €4,132,721 | €1,980,852 | €2,151,869 | €147,923 | −€84,764 | −€134,260 | −€17,476 | −€88,576 |
| 4 | −€87,864 | €4,339,357 | €1,922,815 | €2,416,542 | €151,621 | −€86,883 | −€134,260 | −€18,343 | −€87,864 |
| 5 | −€87,136 | €4,556,325 | €1,862,474 | €2,693,851 | €155,412 | −€89,055 | −€134,260 | −€19,234 | −€87,136 |
| 6 | −€86,394 | €4,784,141 | €1,799,737 | €2,984,404 | €159,297 | −€91,281 | −€134,260 | −€20,150 | −€86,394 |
| 7 | −€85,635 | €5,023,349 | €1,734,509 | €3,288,839 | €163,280 | −€93,563 | −€134,260 | −€21,092 | −€85,635 |
| 8 | −€84,861 | €5,274,516 | €1,666,691 | €3,607,824 | €167,362 | −€95,902 | −€134,260 | −€22,061 | −€84,861 |
| 9 | −€84,071 | €5,538,242 | €1,596,181 | €3,942,061 | €171,546 | −€98,300 | −€134,260 | −€23,057 | −€84,071 |
| 10 | −€83,264 | €5,815,154 | €1,522,871 | €4,292,283 | €175,834 | −€100,757 | −€134,260 | −€24,082 | −€83,264 |
| Total | −€867,033 | €1,577,386 | −€903,879 | −€1,342,600 | −€197,940 | −€867,033 |
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
- €5,815,154
- Agency fee
- −€351,817
- Plusvalía
- −€17,900
- Capital gains tax
- −€322,959
- Mortgage repayment
- −€1,522,871
- Net proceeds
- €3,599,607
For a non-resident seller, the buyer withholds 3% of the price (€174,455) 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 (11.0%)
- €392,700
- Notary & land registry
- €10,710
- Lawyer (incl. VAT)
- €43,197
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €447,507
- Down payment
- €1,428,000
- Mortgage amount
- €2,142,000
- Total cash needed
- €1,875,507