Net result if sold in year 10
+€49,765
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)
2.1%
On your own money
Cash needed at purchase
€167,037
€267,041 incl. yearly shortfalls
Average net cash flow per year
−€10,000
After mortgage payments and tax
Gross yield 6.3%Net yield 0.8%
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
€125,600 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 | −€10,031 | €329,700 | €183,858 | €145,842 | €21,713 | −€17,248 | −€11,809 | −€2,687 | −€10,031 |
| 2 | −€10,024 | €346,185 | €179,136 | €167,049 | €22,255 | −€17,679 | −€11,809 | −€2,791 | −€10,024 |
| 3 | −€10,017 | €363,494 | €174,226 | €189,268 | €22,812 | −€18,121 | −€11,809 | −€2,899 | −€10,017 |
| 4 | −€10,010 | €381,669 | €169,122 | €212,547 | €23,382 | −€18,574 | −€11,809 | −€3,009 | −€10,010 |
| 5 | −€10,003 | €400,752 | €163,814 | €236,938 | €23,967 | −€19,039 | −€11,809 | −€3,122 | −€10,003 |
| 6 | −€9,997 | €420,790 | €158,296 | €262,494 | €24,566 | −€19,515 | −€11,809 | −€3,239 | −€9,997 |
| 7 | −€9,990 | €441,830 | €152,559 | €289,270 | €25,180 | −€20,003 | −€11,809 | −€3,358 | −€9,990 |
| 8 | −€9,983 | €463,921 | €146,594 | €317,327 | €25,809 | −€20,503 | −€11,809 | −€3,481 | −€9,983 |
| 9 | −€9,977 | €487,117 | €140,392 | €346,725 | €26,455 | −€21,015 | −€11,809 | −€3,607 | −€9,977 |
| 10 | −€9,970 | €511,473 | €133,944 | €377,529 | €27,116 | −€21,541 | −€11,809 | −€3,737 | −€9,970 |
| Total | −€100,003 | €243,253 | −€193,237 | −€118,089 | −€31,931 | −€100,003 |
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
- €511,473
- Agency fee
- −€30,944
- Plusvalía
- −€1,600
- Capital gains tax
- −€28,179
- Mortgage repayment
- −€133,944
- Net proceeds
- €316,806
For a non-resident seller, the buyer withholds 3% of the price (€15,344) 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%)
- €35,796
- Notary & land registry
- €942
- Lawyer (incl. VAT)
- €3,799
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €41,437
- Down payment
- €125,600
- Mortgage amount
- €188,400
- Total cash needed
- €167,037