Renting out: making your investment work
A new build apartment in Spain can generate excellent rental income. But the choice between short-term (tourist) and long-term (annual contract) significantly affects your return.
Short-term rental (holiday lets)
Advantages: higher gross yield (6-8%), flexibility to use yourself, higher daily rates (€50-€150/night).
Disadvantages: tourist licence required, management costs 15-25%, seasonal (60-80% occupancy), more wear and tear.
Long-term rental (12+ months)
Advantages: stable income, less management, no tourist licence needed.
Disadvantages: lower yield (4-6%), less flexibility, strong tenant protection in Spain.
Yield comparison (€200,000 apartment)
| Short-term | Long-term | |
|---|---|---|
| Gross rental | €14,000/yr | €9,600/yr |
| Management | -€3,500 | €0 |
| Cleaning/laundry | -€2,000 | €0 |
| Platform fees | -€2,100 | €0 |
| Extra maintenance | -€1,000 | -€500 |
| Net rental | €5,400 | €9,100 |
| Net yield | 2.7% | 4.6% |
Our advice
- Holiday home you also use? → short-term
- Pure investment? → long-term (less hassle, predictable return)
- Combination: some owners rent long-term Oct-May, short-term in summer
Frequently asked questions
Why buy new build in Spain?
What is included in new build properties in Spain?
How can Alistora help me buy property?
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