Net result if sold in year 10
+€97,411
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
€208,043
€297,016 incl. yearly shortfalls
Average net cash flow per year
−€8,897
After mortgage payments and tax
Gross yield 6.0%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
€156,600 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 | −€9,314 | €411,075 | €229,237 | €181,838 | €25,694 | −€16,918 | −€14,723 | −€3,366 | −€9,314 |
| 2 | −€9,226 | €431,629 | €223,349 | €208,279 | €26,336 | −€17,341 | −€14,723 | −€3,498 | −€9,226 |
| 3 | −€9,137 | €453,210 | €217,228 | €235,982 | €26,994 | −€17,775 | −€14,723 | −€3,633 | −€9,137 |
| 4 | −€9,046 | €475,871 | €210,863 | €265,007 | €27,669 | −€18,219 | −€14,723 | −€3,773 | −€9,046 |
| 5 | −€8,953 | €499,664 | €204,246 | €295,418 | €28,361 | −€18,674 | −€14,723 | −€3,916 | −€8,953 |
| 6 | −€8,858 | €524,647 | €197,366 | €327,281 | €29,070 | −€19,141 | −€14,723 | −€4,063 | −€8,858 |
| 7 | −€8,761 | €550,880 | €190,213 | €360,667 | €29,797 | −€19,620 | −€14,723 | −€4,214 | −€8,761 |
| 8 | −€8,662 | €578,424 | €182,776 | €395,648 | €30,541 | −€20,110 | −€14,723 | −€4,369 | −€8,662 |
| 9 | −€8,560 | €607,345 | €175,043 | €432,302 | €31,305 | −€20,613 | −€14,723 | −€4,529 | −€8,560 |
| 10 | −€8,457 | €637,712 | €167,004 | €470,708 | €32,088 | −€21,128 | −€14,723 | −€4,693 | −€8,457 |
| Total | −€88,974 | €287,854 | −€189,539 | −€147,235 | −€40,054 | −€88,974 |
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
- €637,712
- Agency fee
- −€38,582
- Plusvalía
- −€2,000
- Capital gains tax
- −€35,699
- Mortgage repayment
- −€167,004
- Net proceeds
- €394,428
For a non-resident seller, the buyer withholds 3% of the price (€19,131) 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%)
- €44,631
- Notary & land registry
- €1,175
- Lawyer (incl. VAT)
- €4,737
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €51,443
- Down payment
- €156,600
- Mortgage amount
- €234,900
- Total cash needed
- €208,043