Net result if sold in year 10
+€150,913
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)
5.7%
On your own money
Cash needed at purchase
€190,313
€218,822 incl. yearly shortfalls
Average net cash flow per year
−€2,851
After mortgage payments and tax
Gross yield 4.7%Net yield 2.7%
Good to know
- In some years the rental income does not cover the mortgage and costs. Keep a cash reserve for those years.
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
€150,000 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 | −€4,056 | €393,750 | €219,576 | €174,174 | €17,784 | −€7,715 | −€14,103 | −€21 | −€4,056 |
| 2 | −€3,804 | €413,438 | €213,936 | €199,501 | €18,229 | −€7,908 | −€14,103 | −€21 | −€3,804 |
| 3 | −€3,546 | €434,109 | €208,073 | €226,037 | €18,684 | −€8,106 | −€14,103 | −€21 | −€3,546 |
| 4 | −€3,281 | €455,815 | €201,976 | €253,838 | €19,151 | −€8,308 | −€14,103 | −€21 | −€3,281 |
| 5 | −€3,010 | €478,606 | €195,638 | €282,968 | €19,630 | −€8,516 | −€14,103 | −€21 | −€3,010 |
| 6 | −€2,732 | €502,536 | €189,048 | €313,488 | €20,121 | −€8,729 | −€14,103 | −€21 | −€2,732 |
| 7 | −€2,448 | €527,663 | €182,196 | €345,466 | €20,624 | −€8,947 | −€14,103 | −€21 | −€2,448 |
| 8 | −€2,156 | €554,046 | €175,073 | €378,973 | €21,140 | −€9,171 | −€14,103 | −€21 | −€2,156 |
| 9 | −€1,857 | €581,748 | €167,666 | €414,082 | €21,668 | −€9,400 | −€14,103 | −€21 | −€1,857 |
| 10 | −€1,620 | €610,835 | €159,965 | €450,870 | €22,210 | −€9,635 | −€14,103 | −€92 | −€1,620 |
| Total | −€28,509 | €199,241 | −€86,437 | −€141,029 | −€284 | −€28,509 |
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
- €610,835
- Agency fee
- −€36,956
- Plusvalía
- −€1,900
- Capital gains tax
- −€42,280
- Mortgage repayment
- −€159,965
- Net proceeds
- €369,734
For a non-resident seller, the buyer withholds 3% of the price (€18,325) 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 (9.0%)
- €33,750
- Notary & land registry
- €1,125
- Lawyer (incl. VAT)
- €4,538
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €40,313
- Down payment
- €150,000
- Mortgage amount
- €225,000
- Total cash needed
- €190,313