Net result if sold in year 10
+€511,077
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
€1,085,555
€1,557,360 incl. yearly shortfalls
Average net cash flow per year
−€47,180
After mortgage payments and tax
Gross yield 4.1%Net yield 1.5%
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
€820,000 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 | −€49,328 | €2,152,500 | €1,200,348 | €952,152 | €91,856 | −€53,036 | −€77,096 | −€11,051 | −€49,328 |
| 2 | −€48,878 | €2,260,125 | €1,169,518 | €1,090,607 | €94,152 | −€54,362 | −€77,096 | −€11,572 | −€48,878 |
| 3 | −€48,418 | €2,373,131 | €1,137,464 | €1,235,667 | €96,506 | −€55,721 | −€77,096 | −€12,106 | −€48,418 |
| 4 | −€47,948 | €2,491,788 | €1,104,138 | €1,387,650 | €98,919 | −€57,114 | −€77,096 | −€12,656 | −€47,948 |
| 5 | −€47,467 | €2,616,377 | €1,069,488 | €1,546,889 | €101,392 | −€58,542 | −€77,096 | −€13,221 | −€47,467 |
| 6 | −€46,977 | €2,747,196 | €1,033,463 | €1,713,734 | €103,927 | −€60,006 | −€77,096 | −€13,802 | −€46,977 |
| 7 | −€46,476 | €2,884,556 | €996,007 | €1,888,549 | €106,525 | −€61,506 | −€77,096 | −€14,399 | −€46,476 |
| 8 | −€45,964 | €3,028,784 | €957,064 | €2,071,720 | €109,188 | −€63,044 | −€77,096 | −€15,013 | −€45,964 |
| 9 | −€45,442 | €3,180,223 | €916,574 | €2,263,648 | €111,918 | −€64,620 | −€77,096 | −€15,644 | −€45,442 |
| 10 | −€44,908 | €3,339,234 | €874,478 | €2,464,756 | €114,716 | −€66,235 | −€77,096 | −€16,292 | −€44,908 |
| Total | −€471,805 | €1,029,098 | −€594,186 | −€770,961 | −€135,756 | −€471,805 |
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
- €3,339,234
- Agency fee
- −€202,024
- Plusvalía
- −€10,300
- Capital gains tax
- −€183,996
- Mortgage repayment
- −€874,478
- Net proceeds
- €2,068,437
For a non-resident seller, the buyer withholds 3% of the price (€100,177) 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%)
- €233,700
- Notary & land registry
- €6,150
- Lawyer (incl. VAT)
- €24,805
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €265,555
- Down payment
- €820,000
- Mortgage amount
- €1,230,000
- Total cash needed
- €1,085,555