Net result if sold in year 10
+€128,010
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)
3.2%
On your own money
Cash needed at purchase
€291,905
€426,111 incl. yearly shortfalls
Average net cash flow per year
−€13,421
After mortgage payments and tax
Gross yield 5.5%Net yield 1.4%
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
€220,000 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 | −€13,906 | €577,500 | €322,044 | €255,456 | €33,336 | −€22,349 | −€20,684 | −€4,209 | −€13,906 |
| 2 | −€13,804 | €606,375 | €313,773 | €292,602 | €34,169 | −€22,907 | −€20,684 | −€4,381 | −€13,804 |
| 3 | −€13,700 | €636,694 | €305,173 | €331,520 | €35,023 | −€23,480 | −€20,684 | −€4,559 | −€13,700 |
| 4 | −€13,594 | €668,528 | €296,232 | €372,296 | €35,899 | −€24,067 | −€20,684 | −€4,741 | −€13,594 |
| 5 | −€13,485 | €701,955 | €286,936 | €415,019 | €36,796 | −€24,669 | −€20,684 | −€4,928 | −€13,485 |
| 6 | −€13,374 | €737,053 | €277,270 | €459,782 | €37,716 | −€25,286 | −€20,684 | −€5,120 | −€13,374 |
| 7 | −€13,261 | €773,905 | €267,221 | €506,684 | €38,659 | −€25,918 | −€20,684 | −€5,318 | −€13,261 |
| 8 | −€13,146 | €812,600 | €256,773 | €555,827 | €39,625 | −€26,566 | −€20,684 | −€5,521 | −€13,146 |
| 9 | −€13,028 | €853,231 | €245,910 | €607,320 | €40,616 | −€27,230 | −€20,684 | −€5,730 | −€13,028 |
| 10 | −€12,907 | €895,892 | €234,616 | €661,276 | €41,631 | −€27,911 | −€20,684 | −€5,944 | −€12,907 |
| Total | −€134,206 | €373,470 | −€250,382 | −€206,843 | −€50,451 | −€134,206 |
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
- €895,892
- Agency fee
- −€54,201
- Plusvalía
- −€2,800
- Capital gains tax
- −€50,154
- Mortgage repayment
- −€234,616
- Net proceeds
- €554,121
For a non-resident seller, the buyer withholds 3% of the price (€26,877) 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
- VAT + stamp duty (IVA 10% + AJD 1.4%)
- €62,700
- Notary & land registry
- €1,650
- Lawyer (incl. VAT)
- €6,655
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €71,905
- Down payment
- €220,000
- Mortgage amount
- €330,000
- Total cash needed
- €291,905