Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Alicante's property market is included in our pack
This guide covers everything a foreign buyer needs to know about renting out residential property in Alicante in 2026, from legal requirements to realistic income expectations.
We have compiled the most current data from official Spanish sources, property portals, and vacation rental platforms to give you accurate, actionable numbers.
We constantly update this blog post to reflect the latest regulatory changes and market conditions in Alicante.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Alicante.
Insights
- Alicante gross rental yields in 2026 range from 5.5% to 7% for long-term rentals, which is notably higher than the Spanish national average of around 4.5%.
- Alicante City Council has suspended the issuance of new tourist rental compatibility reports, making it nearly impossible to legally start a new Airbnb in many city zones right now.
- Neighborhoods like Campoamor, Carolinas, and Altozano often deliver better yields than premium beachfront areas because purchase prices are lower while rents remain solid.
- Short-term rentals in Alicante average 55% to 70% annual occupancy, but operating costs can eat 30% to 50% of gross revenue compared to around 20% for long-term rentals.
- A typical 2-bedroom apartment in Alicante rents for 900 to 1,250 euros per month in early 2026, which translates to roughly 980 to 1,360 US dollars.
- Playa de San Juan commands the highest rents in Alicante at around 14 to 16 euros per square meter, driven by beach proximity and TRAM connectivity.
- Spain's official rent index (IRAV) currently limits annual rent increases on existing contracts to around 2% to 3%, protecting landlords from sudden regulatory caps on new leases in Alicante since the city is not a declared "tension zone."
- Furnished apartments in Alicante typically rent 10% to 20% faster than unfurnished ones, especially in central and coastal neighborhoods popular with expats and remote workers.
Can I legally rent out a property in Alicante as a foreigner right now?
Can a foreigner own-and-rent a residential property in Alicante in 2026?
As of early 2026, Spain fully allows foreign individuals to purchase residential property in Alicante and rent it out without any nationality-based restrictions on ownership or rental activity.
Most foreign buyers in Alicante either purchase directly as individuals (requiring a Spanish tax ID called NIE) or through a Spanish limited company (SL), though individual ownership is far more common for single rental properties.
The main limitation foreigners face in Alicante is not about ownership itself but about short-term rental permits, since the city has suspended new tourist accommodation licenses in many areas, which does not affect your right to do long-term rentals.
If you're not a local, you might want to read our guide to foreign property ownership in Alicante.
Do I need residency to rent out in Alicante right now?
No, you do not need Spanish residency to rent out a property in Alicante, as Spain explicitly allows non-residents to own and lease residential real estate.
However, you will need a Spanish tax identification number (NIE for individuals or NIF for companies) to legally collect rental income and file your annual non-resident tax returns with the Spanish tax authority (AEAT).
A local Spanish bank account is not strictly required by law, but it is highly practical for receiving rent payments, paying community fees, utilities, and property taxes through standing orders.
Managing a rental property in Alicante remotely is entirely feasible if you hire a local property manager or letting agent to handle tenant communication, key handovers, maintenance issues, and inspections on your behalf.
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What rental strategy makes the most money in Alicante in 2026?
Is long-term renting more profitable than short-term in Alicante in 2026?
As of early 2026, long-term renting in Alicante is generally the safer and more predictable choice, while short-term renting can generate higher gross income but comes with significantly more regulatory risk and operational complexity.
A well-managed long-term rental in Alicante might generate 8,000 to 12,000 euros (8,700 to 13,000 USD) net annually, while a comparable short-term rental could gross 15,000 to 22,000 euros (16,400 to 24,000 USD), but after cleaning, management, platform fees, and vacancy, the net difference often shrinks to just 2,000 to 4,000 euros.
Short-term renting tends to outperform financially in Alicante's beachfront zones like Playa de San Juan, Cabo de las Huertas, and central tourist areas, where nightly rates spike during summer and holiday periods.
What's the average gross rental yield in Alicante in 2026?
As of early 2026, the average gross rental yield for long-term residential rentals in Alicante city sits around 5.5% to 7%, which is above the Spanish national average.
The realistic range for most Alicante properties spans from about 4.5% (in premium beachfront areas with high purchase prices) up to 8% (in more affordable neighborhoods with solid tenant demand).
Studios and small one-bedroom apartments in Alicante typically achieve the highest gross yields because their lower purchase prices relative to achievable rents create a more favorable rent-to-price ratio than larger family units.
By the way, we have much more granular data about rental yields in our property pack about Alicante.
What's the realistic net rental yield after costs in Alicante in 2026?
As of early 2026, the average net rental yield for long-term rentals in Alicante after all operating costs is approximately 3.5% to 4.8%, while short-term rentals range more widely from 3% to 6% depending on management efficiency and occupancy.
Most Alicante landlords realistically experience net yields between 3% and 5.5%, with the higher end achievable in neighborhoods where purchase prices are moderate but rental demand stays strong.
The three main cost categories that reduce gross yield in Alicante specifically are community fees (which average 60 to 140 euros monthly and are notably high in buildings with pools, gardens, or elevators), IBI property tax (which varies significantly by cadastral value and can surprise foreign buyers), and property management fees (typically 8% to 12% of rent if you are managing remotely).
You might want to check our latest analysis about gross and net rental yields in Alicante.
What monthly rent can I get in Alicante in 2026?
As of early 2026, typical monthly rents in Alicante are around 400 to 500 euros (435 to 545 USD) for a studio, 600 to 850 euros (655 to 925 USD) for a one-bedroom, and 900 to 1,250 euros (980 to 1,360 USD) for a two-bedroom apartment.
A decent entry-level studio in Alicante rents for approximately 380 to 480 euros (415 to 525 USD) per month in neighborhoods like Benalua, Florida, or Babel.
A typical mid-range one-bedroom apartment in Alicante commands around 580 to 800 euros (630 to 870 USD) monthly in areas like Centro, Ensanche-Diputacion, or Carolinas.
A standard two-bedroom apartment in sought-after Alicante neighborhoods like Playa de San Juan, Cabo de las Huertas, or Vistahermosa rents for 950 to 1,300 euros (1,035 to 1,420 USD) per month.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Alicante.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Alicante in 2026?
What's the total "all-in" monthly cost to hold a rental in Alicante in 2026?
As of early 2026, the total monthly holding cost for a typical rental apartment in Alicante (excluding mortgage payments) ranges from 180 to 320 euros (195 to 350 USD), depending on building amenities and whether you use professional management.
The realistic range for most Alicante rental properties spans from about 150 euros monthly (basic apartment, self-managed) to 400 euros or more (building with pool and elevator, full management service).
Community fees (comunidad) tend to be the single largest monthly expense in Alicante, especially in coastal buildings with shared pools, gardens, security, or elevators, where fees often reach 100 to 150 euros monthly.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Alicante.
What's the typical vacancy rate in Alicante in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Alicante is approximately 4% to 10%, meaning landlords should expect about half a month to one and a half months of vacancy per year on average.
Landlords in Alicante should realistically budget for one month of vacancy annually because tenant turnover, even in a tight rental market, creates gaps during re-advertising, viewings, and contract preparation.
Vacancy rates in Alicante vary significantly by neighborhood, with central and well-connected areas like Centro and Ensanche having lower vacancy due to steady worker and student demand, while peripheral or purely seasonal zones experience longer gaps between tenants.
Tenant turnover in Alicante typically peaks in late summer (August through September) when students relocate before the academic year and summer sublets end, creating both opportunities and risks depending on your tenant profile.
We have a whole part covering the best rental strategies in our pack about buying a property in Alicante.
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Where do rentals perform best in Alicante in 2026?
Which neighborhoods have the highest long-term demand in Alicante in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Alicante are Centro (the historic city core), Ensanche-Diputacion (a well-connected residential area), and Playa de San Juan (the main beach district with excellent TRAM access).
Families in Alicante gravitate toward Playa de San Juan, Cabo de las Huertas, and Vistahermosa because these neighborhoods offer larger apartments, proximity to schools, green spaces, and a calmer residential atmosphere.
Students looking for rentals in Alicante concentrate in San Blas, Carolinas, and Altozano due to affordable rents, good bus and TRAM connections, and proximity to the University of Alicante commute routes.
Expats and international professionals in Alicante prefer Centro, Playa de San Juan, and Albufereta because these areas combine walkable amenities, beach lifestyle, cafes, and an established international community.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Alicante.
Which neighborhoods have the best yield in Alicante in 2026?
As of early 2026, the neighborhoods with the best rental yields in Alicante are Campoamor, Carolinas, and Altozano, where moderate purchase prices combine with solid and consistent tenant demand.
Gross rental yields in these top-performing Alicante neighborhoods typically range from 6% to 8%, compared to 4.5% to 5.5% in premium beachfront areas like Playa de San Juan where purchase prices are significantly higher.
The main characteristic allowing these neighborhoods to achieve higher yields is that they attract stable, year-round tenants (workers, students, young families) rather than seasonal or tourist demand, which keeps vacancy low while purchase prices remain accessible.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Alicante.
Where do tenants pay the highest rents in Alicante in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Alicante are Playa de San Juan-El Cabo (around 14 to 16 euros per square meter), Centro (around 13 to 15 euros per square meter), and Vistahermosa-Parque de Avenidas (around 12 to 14 euros per square meter).
A standard two-bedroom apartment in these premium Alicante neighborhoods typically rents for 1,100 to 1,400 euros (1,200 to 1,525 USD) per month, with larger or renovated units exceeding 1,500 euros.
The main characteristic driving these high rents is not just location but the combination of TRAM connectivity, direct beach access (in Playa de San Juan), walkable services, and well-maintained building stock with amenities like elevators, terraces, and parking.
Tenants in these highest-rent Alicante neighborhoods are typically dual-income professional couples, senior expats with stable pensions, remote workers seeking lifestyle-driven locations, and corporate relocation tenants with housing allowances.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Alicante in 2026?
What features increase rent the most in Alicante in 2026?
As of early 2026, the three property features that increase monthly rent the most in Alicante are a private terrace or balcony (essential in this Mediterranean climate), air conditioning (expected by nearly all tenants), and proximity to a TRAM stop or the beach (unique to Alicante's coastal urban layout).
A private outdoor space like a terrace adds an estimated 10% to 20% rent premium in Alicante because the weather allows year-round outdoor living, making this feature more valuable here than in northern Spanish cities.
One commonly overrated feature that Alicante landlords invest in but tenants rarely pay extra for is high-end kitchen appliances, since most renters prioritize location, outdoor space, and thermal comfort over brand-name ovens or dishwashers.
One affordable upgrade that delivers strong returns in Alicante is installing quality air conditioning (around 800 to 1,200 euros) because it directly affects whether a property rents quickly in summer and can justify a 5% to 10% rent increase.
Do furnished rentals rent faster in Alicante in 2026?
As of early 2026, furnished apartments in Alicante typically rent 10% to 20% faster than unfurnished ones, with the difference most pronounced in central and coastal neighborhoods where expats, remote workers, and relocating professionals want move-in-ready homes.
Furnished rentals in Alicante command a rent premium of roughly 10% to 15% over comparable unfurnished units, though this premium shrinks in family-oriented neighborhoods where long-term tenants often prefer to bring their own furniture.
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How regulated is long-term renting in Alicante right now?
Can I freely set rent prices in Alicante right now?
In early 2026, landlords in Alicante can freely set initial rent prices on new long-term leases because the city has not been officially declared a "tension zone" under Spain's 2023 Housing Law, which would otherwise impose rent caps.
Once a tenant is in place, annual rent increases during the tenancy are regulated by Spain's official rent index (IRAV), which currently allows increases of around 2% to 3% per year, preventing landlords from applying unlimited mid-lease hikes.
What's the standard lease length in Alicante right now?
The standard lease length for residential rentals in Alicante follows Spain's Urban Leases Act (LAU), which gives tenants the right to extend annual contracts up to five years (or seven years if the landlord is a company), making long-term stability the norm rather than month-to-month flexibility.
Under Spanish law, the maximum security deposit (fianza) a landlord can legally require for an unfurnished residential rental in Alicante is one month's rent, though landlords may request additional guarantees (such as a bank guarantee or extra deposit) for furnished properties or higher-risk tenants.
The security deposit must be returned to the tenant within one month after the lease ends, minus any legitimate deductions for unpaid rent or documented damages beyond normal wear and tear, and landlords who delay can face legal claims.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Alicante in 2026?
Is Airbnb legal in Alicante right now?
Airbnb-style short-term rentals can be legal in Alicante, but operating one requires navigating a complex licensing process that has become significantly harder since the city suspended new tourist rental compatibility reports in many zones.
To legally operate a short-term rental (vivienda de uso turistico or VUT) in Alicante, you need to obtain municipal urban compatibility clearance and then file a "declaracion responsable" with the Valencian regional government, a process that currently faces major bottlenecks.
Alicante does not have a simple annual night limit like some cities; instead, the ability to rent short-term depends entirely on whether your property has the required tourism registration, and without it, any number of nights is technically illegal.
The most common consequence for operating an unlicensed short-term rental in Alicante is substantial fines from the Valencian regional tourism authority, which can range from several thousand euros up to 600,000 euros for repeated or serious violations under regional decree law.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Alicante.
What's the average short-term occupancy in Alicante in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Alicante is approximately 55% to 65%, though well-located and well-reviewed properties in prime areas can achieve 70% or higher.
The realistic occupancy range for most Alicante short-term rentals spans from about 45% (for average properties in less central locations) up to 75% (for standout listings near Playa de San Juan or Centro with strong reviews).
The highest occupancy months for short-term rentals in Alicante are June through September (peak summer tourism), plus Easter week and the December holiday period, when coastal Mediterranean destinations see surging demand.
The lowest occupancy months in Alicante are typically November through February (excluding Christmas), when cooler weather and lack of beach appeal reduce tourist arrivals to a fraction of summer levels.
Finally, please note that you can find much more granular data about this topic in our property pack about Alicante.
What's the average nightly rate in Alicante in 2026?
As of early 2026, the average nightly rate (ADR) for short-term rentals in Alicante is approximately 95 to 130 euros (105 to 140 USD), depending heavily on location, property quality, and season.
The realistic range for most Alicante short-term listings spans from about 60 euros (65 USD) per night for basic apartments in less central areas up to 180 euros (195 USD) or more for premium beachfront properties with terraces and sea views.
Peak season nightly rates in Alicante (July and August) typically run 40% to 60% higher than off-season rates (November through February), meaning a property averaging 80 euros in winter might command 120 to 130 euros in summer.
Is short-term rental supply saturated in Alicante in 2026?
As of early 2026, the short-term rental market in Alicante is moderately saturated, meaning generic or poorly differentiated properties struggle to maintain strong occupancy, while standout listings with terraces, sea views, or prime locations still perform well.
The trend in active short-term rental listings in Alicante has been relatively stable to slightly declining recently, partly due to regulatory tightening and the city's suspension of new compatibility reports, which limits new legal supply entering the market.
The most oversaturated neighborhoods for short-term rentals in Alicante are Centro (historic core) and parts of Playa de San Juan closest to the main beach strip, where competition among similar listings has intensified.
Neighborhoods that still have room for new short-term rental supply in Alicante include Cabo de las Huertas (slightly less crowded than Playa de San Juan), Albufereta (quieter beach alternative), and the areas near the port that attract a different visitor profile.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Alicante, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Spain's Urban Leases Act (LAU) | Official national law governing residential leases in Spain. | We referenced it for lease length, deposit limits, and tenant rights. We used it to explain what "long-term renting" means legally in Alicante. |
| INE IRAV Index | Spain's national statistics office publishes the official rent update index. | We used it to explain what annual rent increases are permitted in 2026. We clarified this applies to existing contracts, not new asking rents. |
| idealista Rent Reports | Spain's largest property portal with transparent rent indices. | We used it to estimate monthly rents by apartment size and neighborhood. We cross-referenced these asking-rent signals with official frameworks. |
| Tinsa Appraisal Data | Major Spanish appraisal firm with consistent methodology. | We used it to estimate purchase prices per square meter for yield calculations. We paired this with rent data to compute gross yields. |
| AirDNA | Widely used vacation rental dataset covering Airbnb and Vrbo. | We used it to estimate short-term rental occupancy and nightly rates. We interpreted metrics using their published methodology documentation. |
| Alicante City Council VUT Notice | Official municipal source on local tourist rental policy. | We used it to explain why new Airbnb licenses are hard to obtain. We flagged this as a key regulatory risk for short-term rental investors. |
| Generalitat Valenciana Tourism Authority | Regional government authority for tourist accommodation rules. | We used it to explain VUT registration requirements in the Valencia region. We outlined the "declaracion responsable" filing process. |
| AEAT Non-Residents Portal | Spain's official tax authority guidance for non-residents. | We used it to confirm foreigners can rent out without residency. We explained NIE requirements for tax compliance. |
| MIVAU Tension Zone List | Ministry's official list of rent-controlled areas in Spain. | We used it to verify Alicante is not a declared tension zone. We confirmed landlords can freely set initial rents in 2026. |
| Banco de Espana Annual Report | Spain's central bank provides rigorous housing market analysis. | We used it to contextualize Alicante's tight rental market and tourism pressure. We validated vacancy and demand patterns at the regional level. |
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.