Net result if sold in year 10
+€229,521
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)
3.4%
On your own money
Cash needed at purchase
€487,672
€698,771 incl. yearly shortfalls
Average net cash flow per year
−€21,110
After mortgage payments and tax
Gross yield 4.9%Net yield 1.6%
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
€368,000 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 | −€22,080 | €966,000 | €538,693 | €427,307 | €49,580 | −€30,756 | −€34,599 | −€6,305 | −€22,080 |
| 2 | −€21,877 | €1,014,300 | €524,857 | €489,443 | €50,819 | −€31,525 | −€34,599 | −€6,572 | −€21,877 |
| 3 | −€21,669 | €1,065,015 | €510,472 | €554,543 | €52,089 | −€32,313 | −€34,599 | −€6,846 | −€21,669 |
| 4 | −€21,457 | €1,118,266 | €495,515 | €622,750 | €53,392 | −€33,121 | −€34,599 | −€7,128 | −€21,457 |
| 5 | −€21,240 | €1,174,179 | €479,965 | €694,214 | €54,726 | −€33,949 | −€34,599 | −€7,418 | −€21,240 |
| 6 | −€21,018 | €1,232,888 | €463,798 | €769,090 | €56,095 | −€34,798 | −€34,599 | −€7,716 | −€21,018 |
| 7 | −€20,792 | €1,294,532 | €446,988 | €847,544 | €57,497 | −€35,668 | −€34,599 | −€8,022 | −€20,792 |
| 8 | −€20,560 | €1,359,259 | €429,512 | €929,747 | €58,934 | −€36,559 | −€34,599 | −€8,336 | −€20,560 |
| 9 | −€20,324 | €1,427,222 | €411,341 | €1,015,881 | €60,408 | −€37,473 | −€34,599 | −€8,659 | −€20,324 |
| 10 | −€20,083 | €1,498,583 | €392,449 | €1,106,135 | €61,918 | −€38,410 | −€34,599 | −€8,991 | −€20,083 |
| Total | −€211,099 | €555,458 | −€344,571 | −€345,992 | −€75,994 | −€211,099 |
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
- €1,498,583
- Agency fee
- −€90,664
- Plusvalía
- −€4,600
- Capital gains tax
- −€82,578
- Mortgage repayment
- −€392,449
- Net proceeds
- €928,292
For a non-resident seller, the buyer withholds 3% of the price (€44,957) 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%)
- €104,880
- Notary & land registry
- €2,760
- Lawyer (incl. VAT)
- €11,132
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €119,672
- Down payment
- €368,000
- Mortgage amount
- €552,000
- Total cash needed
- €487,672