Net result if sold in year 10
+€407,561
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
€847,460
€1,206,860 incl. yearly shortfalls
Average net cash flow per year
−€35,940
After mortgage payments and tax
Gross yield 4.3%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
€640,000 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 | −€37,711 | €1,680,000 | €936,857 | €743,143 | €75,932 | −€44,091 | −€60,173 | −€9,379 | −€37,711 |
| 2 | −€37,340 | €1,764,000 | €912,794 | €851,206 | €77,830 | −€45,194 | −€60,173 | −€9,804 | −€37,340 |
| 3 | −€36,961 | €1,852,200 | €887,777 | €964,423 | €79,776 | −€46,324 | −€60,173 | −€10,241 | −€36,961 |
| 4 | −€36,573 | €1,944,810 | €861,766 | €1,083,044 | €81,770 | −€47,482 | −€60,173 | −€10,689 | −€36,573 |
| 5 | −€36,177 | €2,042,051 | €834,722 | €1,207,328 | €83,815 | −€48,669 | −€60,173 | −€11,151 | −€36,177 |
| 6 | −€35,772 | €2,144,153 | €806,605 | €1,337,548 | €85,910 | −€49,885 | −€60,173 | −€11,625 | −€35,772 |
| 7 | −€35,359 | €2,251,361 | €777,371 | €1,473,990 | €88,058 | −€51,133 | −€60,173 | −€12,112 | −€35,359 |
| 8 | −€34,937 | €2,363,929 | €746,977 | €1,616,952 | €90,259 | −€52,411 | −€60,173 | −€12,613 | −€34,937 |
| 9 | −€34,505 | €2,482,125 | €715,375 | €1,766,750 | €92,516 | −€53,721 | −€60,173 | −€13,128 | −€34,505 |
| 10 | −€34,065 | €2,606,231 | €682,519 | €1,923,712 | €94,829 | −€55,064 | −€60,173 | −€13,657 | −€34,065 |
| Total | −€359,400 | €850,695 | −€493,973 | −€601,725 | −€114,397 | −€359,400 |
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
- €2,606,231
- Agency fee
- −€157,677
- Plusvalía
- −€8,000
- Capital gains tax
- −€143,614
- Mortgage repayment
- −€682,519
- Net proceeds
- €1,614,421
For a non-resident seller, the buyer withholds 3% of the price (€78,187) 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%)
- €182,400
- Notary & land registry
- €4,800
- Lawyer (incl. VAT)
- €19,360
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €207,460
- Down payment
- €640,000
- Mortgage amount
- €960,000
- Total cash needed
- €847,460