Rent Out Your Holiday Home for Profit
Make Your Costa Blanca Home Work for You: Renting in Benijófar & the surrounding area.
Many of our clients own wonderful holiday homes they barely use outside a few weeks each year. If that sounds like you, your property could be generating steady income—either through tourist letting (short stays) or long-term rentals. Below we explain both options, realistic earning scenarios, and the key legal steps in the Benijófar and wider Vega Baja area.
Two Paths to Monetise Your Home
1) Tourist Letting (Short Stays)
Ideal if: you still want personal use, prefer flexibility, and your home is in a spot attractive to holidaymakers (pools, terraces, near beaches/golf, good Wi-Fi).
How income works (illustrative):
Typical nightly rate for a well-kept 2–3 bed in the area might range €80–€140/night or more depending on season, quality, and amenities.
Average annual occupancy can vary widely (35%–65%) depending on marketing, reviews, and seasonality.
Example scenarios (rough, not promises):
Conservative: €90/night × 140 nights (≈38% occupancy) ≈ €12,600/year
Mid: €110/night × 180 nights (≈49% occupancy) ≈ €19,800/year
Optimistic: €130/night × 220 nights (≈60% occupancy) ≈ €28,600/year
From these figures you’d deduct costs (see below) and applicable taxes.
Pros
Higher gross income potential.
You keep personal use in low season.
Cons
More hands-on (guest turnover, cleaning, marketing).
Stricter compliance for tourist rentals.
2) Long-Term Rental (10–12+ months)
Ideal if: you want predictable income, minimal turnover, and less management.
How income works (illustrative):
In Benijófar/Vega Baja, a quality furnished 2–3 bed might secure €700–€1,100/month depending on size, condition, location, parking, pool, and demand.
Example scenarios (rough, not promises):
€750/month × 12 ≈ €9,000/year
€900/month × 12 ≈ €10,800/year
€1,050/month × 12 ≈ €12,600/year
Pros
Stable cash flow, fewer moving parts.
Simpler compliance than tourist use.
Cons
Lower gross than peak tourist success.
Limited personal use during the tenancy.
What You’ll Need to Consider Legally
We advise tailored, case-by-case guidance. Rules can differ by municipality, building community, and property type.
For Tourist Letting (short stays)
Registration/Licence: Tourist rentals in the Valencian Community typically require prior tourist accommodation registration and compliance with local/municipal planning.
Community of Owners: Many communities prohibit or limit tourist use—check statutes and meeting minutes and, where needed, seek community authorisation.
Habitability & Energy: Ensure Cédula de Habitabilidad/Occupancy Certificate and valid Energy Performance Certificate (EPC).
Police Guest Registration & Data Protection: Mandatory traveller ID registration and GDPR-compliant handling of guest data.
Tourist Tax/Local Fees: Where applicable, ensure correct local taxes/fees are collected and paid.
Services vs VAT: If you offer hotel-like services (e.g., regular cleaning/linen change during stays, reception), different VAT/IVA rules may apply. We’ll review your model to keep it compliant.
Contracts & House Rules: Multilingual booking Ts&Cs, deposit/ damages clauses, and house rules aligned with community regulations.
For Long-Term Rentals
LAU Contracts (Spain’s Urban Leases Act): Proper Spanish contract (we also provide bilingual versions), inventory, and clear clauses on repairs, early termination, and updates.
Deposits & Guarantees: Fianza (official deposit) and optional additional guarantees handled correctly.
Habitability/EPC: Same documents still relevant.
Community Rules: Ensure tenants are aware of by-laws (use of pool, noise, pets, etc.).
Taxes & Ongoing Costs (Overview)
Non-Resident Income Tax (IRNR):
EU/EEA owners: typically 19% on net rental profits (eligible expenses prorated by rental days).
Non-EU owners: typically 24% on gross income (deductions are limited).
Deductible Expenses (often for EU/EEA owners): community fees, IBI (council tax), insurance, utilities (if you pay them), maintenance, cleaning, marketing, management—pro-rated to rental use.
VAT/IVA: Long-term residential leases are generally exempt. Tourist lets may trigger VAT if hotel-type services are provided—ask us to structure this correctly.
If the property sits empty: Spain applies an imputed income for non-resident owners; renting can offset that with real income (and deductions, where eligible).
We’ll calculate your after-tax numbers precisely for your situation (residency, double-tax treaties, deductions).
Which Option Fits You?
Maximise income & keep flexibility? Tourist letting can outperform, if your home is well-located and you (or a manager) commit to quality and reviews.
Prefer peace of mind & steady cash flow? Long-term lets provide stability with fewer moving parts.
If you’re unsure, you could also model a hybrid approach (e.g., long-term in off-peak vs. tourist in peak) where permitted.
How SGM Abogados can Help
Feasibility check: Community by-laws, municipal planning/compatibility, and licence pathway.
End-to-end compliance: Registration, documentation, contracts (ES/EN/NL/FR), guest-ID procedures, privacy notices, and house rules.
Risk management: Insurance review, deposit structures, damage/overstay protocols, and neighbour-relations playbook.
Operational setup: Checking property management agreements and platform terms.
Why not get in touch today and see how the team at SGM Abogados can help you?
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