Net result if sold in year 10
+€456,595
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)
3.5%
On your own money
Cash needed at purchase
€953,280
€1,359,629 incl. yearly shortfalls
Average net cash flow per year
−€40,635
After mortgage payments and tax
Gross yield 4.2%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
€720,000 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 | −€42,605 | €1,890,000 | €1,053,964 | €836,036 | €83,085 | −€47,836 | −€67,694 | −€10,159 | −€42,605 |
| 2 | −€42,192 | €1,984,500 | €1,026,894 | €957,606 | €85,162 | −€49,032 | −€67,694 | −€10,628 | −€42,192 |
| 3 | −€41,770 | €2,083,725 | €998,749 | €1,084,976 | €87,291 | −€50,258 | −€67,694 | −€11,109 | −€41,770 |
| 4 | −€41,339 | €2,187,911 | €969,487 | €1,218,425 | €89,473 | −€51,515 | −€67,694 | −€11,603 | −€41,339 |
| 5 | −€40,899 | €2,297,307 | €939,063 | €1,358,244 | €91,710 | −€52,802 | −€67,694 | −€12,112 | −€40,899 |
| 6 | −€40,448 | €2,412,172 | €907,431 | €1,504,742 | €94,002 | −€54,123 | −€67,694 | −€12,634 | −€40,448 |
| 7 | −€39,989 | €2,532,781 | €874,542 | €1,658,238 | €96,353 | −€55,476 | −€67,694 | −€13,171 | −€39,989 |
| 8 | −€39,519 | €2,659,420 | €840,349 | €1,819,071 | €98,761 | −€56,862 | −€67,694 | −€13,724 | −€39,519 |
| 9 | −€39,039 | €2,792,391 | €804,797 | €1,987,594 | €101,230 | −€58,284 | −€67,694 | −€14,291 | −€39,039 |
| 10 | −€38,549 | €2,932,010 | €767,834 | €2,164,176 | €103,761 | −€59,741 | −€67,694 | −€14,875 | −€38,549 |
| Total | −€406,349 | €930,827 | −€535,930 | −€676,941 | −€124,306 | −€406,349 |
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
- €2,932,010
- Agency fee
- −€177,387
- Plusvalía
- −€9,000
- Capital gains tax
- −€161,566
- Mortgage repayment
- −€767,834
- Net proceeds
- €1,816,224
For a non-resident seller, the buyer withholds 3% of the price (€87,960) 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%)
- €205,200
- Notary & land registry
- €5,400
- Lawyer (incl. VAT)
- €21,780
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €233,280
- Down payment
- €720,000
- Mortgage amount
- €1,080,000
- Total cash needed
- €953,280