Net result if sold in year 10
+€99,463
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)
2.9%
On your own money
Cash needed at purchase
€244,693
€363,997 incl. yearly shortfalls
Average net cash flow per year
−€11,930
After mortgage payments and tax
Gross yield 5.7%Net yield 1.3%
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
€183,960 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 | −€12,260 | €482,895 | €269,288 | €213,607 | €29,016 | −€20,338 | −€17,296 | −€3,642 | −€12,260 |
| 2 | −€12,191 | €507,040 | €262,371 | €244,668 | €29,741 | −€20,846 | −€17,296 | −€3,790 | −€12,191 |
| 3 | −€12,120 | €532,392 | €255,180 | €277,211 | €30,484 | −€21,367 | −€17,296 | −€3,941 | −€12,120 |
| 4 | −€12,048 | €559,011 | €247,704 | €311,307 | €31,247 | −€21,901 | −€17,296 | −€4,097 | −€12,048 |
| 5 | −€11,974 | €586,962 | €239,931 | €347,031 | €32,028 | −€22,449 | −€17,296 | −€4,257 | −€11,974 |
| 6 | −€11,899 | €616,310 | €231,848 | €384,461 | €32,828 | −€23,010 | −€17,296 | −€4,421 | −€11,899 |
| 7 | −€11,822 | €647,125 | €223,446 | €423,680 | €33,649 | −€23,585 | −€17,296 | −€4,590 | −€11,822 |
| 8 | −€11,744 | €679,482 | €214,709 | €464,773 | €34,490 | −€24,175 | −€17,296 | −€4,763 | −€11,744 |
| 9 | −€11,664 | €713,456 | €205,626 | €507,830 | €35,353 | −€24,779 | −€17,296 | −€4,941 | −€11,664 |
| 10 | −€11,583 | €749,129 | €196,182 | €552,947 | €36,236 | −€25,399 | −€17,296 | −€5,124 | −€11,583 |
| Total | −€119,304 | €325,072 | −€227,850 | −€172,958 | −€43,567 | −€119,304 |
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
- €749,129
- Agency fee
- −€45,322
- Plusvalía
- −€2,300
- Capital gains tax
- −€41,865
- Mortgage repayment
- −€196,182
- Net proceeds
- €463,460
For a non-resident seller, the buyer withholds 3% of the price (€22,474) 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 1.5%)
- €52,889
- Notary & land registry
- €1,380
- Lawyer (incl. VAT)
- €5,565
- Mortgage set-up (valuation, gestoría)
- €900
- Total purchase costs
- €60,733
- Down payment
- €183,960
- Mortgage amount
- €275,940
- Total cash needed
- €244,693