Net result if sold in year 10
+€153,483
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)
3.2%
On your own money
Cash needed at purchase
€348,104
€508,633 incl. yearly shortfalls
Average net cash flow per year
−€16,053
After mortgage payments and tax
Gross yield 5.3%Net yield 1.4%
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
€262,487 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 | −€16,638 | €689,028 | €384,238 | €304,790 | €38,126 | −€25,228 | −€24,679 | −€4,857 | −€16,638 |
| 2 | −€16,515 | €723,479 | €374,370 | €349,110 | €39,079 | −€25,859 | −€24,679 | −€5,056 | −€16,515 |
| 3 | −€16,390 | €759,653 | €364,109 | €395,544 | €40,056 | −€26,506 | −€24,679 | −€5,261 | −€16,390 |
| 4 | −€16,262 | €797,636 | €353,441 | €444,195 | €41,058 | −€27,168 | −€24,679 | −€5,472 | −€16,262 |
| 5 | −€16,131 | €837,518 | €342,349 | €495,168 | €42,084 | −€27,847 | −€24,679 | −€5,688 | −€16,131 |
| 6 | −€15,997 | €879,394 | €330,817 | €548,576 | €43,136 | −€28,544 | −€24,679 | −€5,911 | −€15,997 |
| 7 | −€15,861 | €923,363 | €318,828 | €604,536 | €44,214 | −€29,257 | −€24,679 | −€6,139 | −€15,861 |
| 8 | −€15,722 | €969,531 | €306,362 | €663,170 | €45,320 | −€29,989 | −€24,679 | −€6,374 | −€15,722 |
| 9 | −€15,579 | €1,018,008 | €293,401 | €724,607 | €46,453 | −€30,738 | −€24,679 | −€6,615 | −€15,579 |
| 10 | −€15,434 | €1,068,908 | €279,925 | €788,983 | €47,614 | −€31,507 | −€24,679 | −€6,863 | −€15,434 |
| Total | −€160,529 | €427,140 | −€282,644 | −€246,789 | −€58,236 | −€160,529 |
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
- €1,068,908
- Agency fee
- −€64,669
- Plusvalía
- −€3,300
- Capital gains tax
- −€58,898
- Mortgage repayment
- −€279,925
- Net proceeds
- €662,116
For a non-resident seller, the buyer withholds 3% of the price (€32,067) 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%)
- €74,809
- Notary & land registry
- €1,969
- Lawyer (incl. VAT)
- €7,940
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €85,618
- Down payment
- €262,487
- Mortgage amount
- €393,730
- Total cash needed
- €348,104