Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
Costa Blanca remains one of the most attractive destinations in Spain for foreign investors looking to generate rental income from residential property.
Whether you're considering a long-term rental for expats and locals or a short-term holiday let near the beach, understanding the rules, numbers, and market realities is essential before you buy.
We constantly update this blog post to reflect the latest regulations, rental yields, and market data for Costa Blanca.
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 Costa Blanca.
Insights
- Foreign buyers represent over 40% of property transactions in Alicante province, making Costa Blanca one of the most internationally active rental markets in Spain.
- Gross rental yields in Costa Blanca average around 6.2% for long-term rentals in early 2026, with some well-connected Alicante city districts reaching 7% or higher.
- Benidorm short-term rentals show annual occupancy rates of 60% to 65%, but operating costs can eat 30% or more of gross revenue before you see net profit.
- Costa Blanca municipalities have not been declared "tensioned housing zones" as of January 2026, meaning landlords can still set initial rents freely without price caps.
- Spain's new national short-term rental registry (Real Decreto 1312/2024) now requires a registration number before listing on platforms like Airbnb or Booking.com.
- Monthly rents in Benidorm reach around 16 euros per square meter, roughly 30% higher than Torrevieja or Denia, reflecting the tourism premium in prime beach locations.
- Non-resident landlords in Costa Blanca must file Modelo 210 quarterly or annually to declare rental income, even if they never set foot in Spain during the year.
- Furnished rentals in expat-heavy towns like Javea or Orihuela Costa typically rent 15% to 25% faster than unfurnished units, as international tenants prefer move-in-ready homes.
Can I legally rent out a property in Costa Blanca as a foreigner right now?
Can a foreigner own-and-rent a residential property in Costa Blanca in 2026?
As of early 2026, Spain allows foreigners from both EU and non-EU countries to buy residential property on the Costa Blanca and rent it out without any nationality-based restrictions.
Most foreign landlords in Costa Blanca hold property directly in their personal name, though some use a Spanish limited company (Sociedad Limitada) if they plan to scale up or want certain tax structuring options.
The main practical requirement is obtaining an NIE (Foreigner Identification Number) from Spain's National Police, which you need for the purchase, for signing contracts, and for filing taxes on your rental income.
If you're not a local, you might want to read our guide to foreign property ownership in Costa Blanca.
Do I need residency to rent out in Costa Blanca right now?
You do not need to be a Spanish resident to own and rent out property in Costa Blanca, and thousands of non-resident landlords successfully manage rentals from abroad.
However, you will need an NIE (Foreigner Identification Number) to legally collect rent, sign contracts, and file your Spanish tax returns as a non-resident landlord.
A Spanish bank account is not legally mandatory, but most property managers and tenants in Costa Blanca prefer paying rent to a local IBAN, and it makes utility payments and community fees much simpler.
Managing a Costa Blanca rental remotely is entirely feasible if you hire a local property manager or agency to handle tenant issues, maintenance, and key handovers on your behalf.
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What rental strategy makes the most money in Costa Blanca in 2026?
Is long-term renting more profitable than short-term in Costa Blanca in 2026?
As of early 2026, long-term renting in Costa Blanca typically delivers more predictable net returns with less effort, while short-term renting can generate higher gross income but comes with significantly higher costs and regulatory complexity.
A well-located two-bedroom apartment in Alicante city might earn around 10,000 to 11,000 euros per year in long-term rent, whereas the same property operated as a short-term rental in Benidorm could gross 14,000 to 18,000 euros but net a similar or only slightly higher amount after cleaning, management, and platform fees.
Properties in prime tourist zones like Benidorm's Playa de Poniente or Calpe's beachfront tend to favor short-term renting financially, especially if they have sea views, pools, or walk-to-beach access that command premium nightly rates.
What's the average gross rental yield in Costa Blanca in 2026?
As of early 2026, the average gross rental yield for residential property in Costa Blanca sits around 6.2% for long-term rentals, which is slightly below Spain's national average of 6.7% but still attractive by European standards.
Depending on location and property type, gross yields in Costa Blanca typically range from 5.0% in premium beachfront areas like Javea to 7.5% in well-connected but more affordable districts of Alicante city or Torrevieja.
Smaller units like studios and one-bedroom apartments in urban centers such as Alicante's Centro or Benalua districts tend to achieve the highest gross yields because purchase prices remain moderate while rental demand stays strong year-round.
By the way, we have much more granular data about rental yields in our property pack about Costa Blanca.
What's the realistic net rental yield after costs in Costa Blanca in 2026?
As of early 2026, the average net rental yield after all operating costs for long-term rentals in Costa Blanca is around 4.1%, with short-term rentals averaging closer to 4.8% despite their higher gross income.
Most landlords in Costa Blanca experience net yields ranging from 3.2% on premium properties with higher maintenance costs to 5.2% on efficiently managed apartments in high-demand urban areas like Alicante city.
The three main cost categories that reduce gross yield to net yield in Costa Blanca are community fees (which can reach 150 euros monthly in urbanizations with pools and gardens), property management fees (8% to 12% of rent for long-term, 15% to 25% for short-term), and the IBI property tax plus home insurance combined.
You might want to check our latest analysis about gross and net rental yields in Costa Blanca.
What monthly rent can I get in Costa Blanca in 2026?
As of early 2026, typical monthly rents in Costa Blanca range from around 420 euros (440 USD, 405 EUR) for a studio to 700 euros (735 USD, 700 EUR) for a one-bedroom and 950 euros (1,000 USD, 950 EUR) for a two-bedroom apartment, though this varies significantly by town.
A decent studio in more affordable areas like Torrevieja or Denia typically rents for 400 to 450 euros per month (420 to 475 USD), which represents the entry-level range for Costa Blanca.
A mid-range one-bedroom apartment in Alicante city or El Campello generally commands 650 to 750 euros per month (680 to 790 USD), reflecting steady year-round demand from locals and professionals.
A two-bedroom apartment in tourism-premium areas like Benidorm or Javea's Arenal district typically fetches 1,000 to 1,200 euros per month (1,050 to 1,260 USD), with the highest rents going to properties with sea views or pool access.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Costa Blanca.
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 Costa Blanca in 2026?
What's the total "all-in" monthly cost to hold a rental in Costa Blanca in 2026?
As of early 2026, the total monthly cost to hold a typical long-term rental apartment in Costa Blanca runs between 220 and 420 euros (230 to 440 USD) before any mortgage payments, plus 8% to 12% of rental income if you use a property manager.
This range covers community fees of 60 to 150 euros, IBI property tax averaged monthly at 40 to 90 euros, home insurance at 15 to 35 euros, and a maintenance reserve of 50 to 120 euros for repairs and replacements.
The single largest cost contributor in Costa Blanca is typically the community fee, especially in urbanizations with shared pools, gardens, and security, which can easily exceed 120 euros monthly in popular expat complexes around Orihuela Costa or Javea.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Costa Blanca.
What's the typical vacancy rate in Costa Blanca in 2026?
As of early 2026, the typical vacancy rate for well-priced long-term rentals in Costa Blanca is around 5% to 8%, meaning landlords should budget for roughly three to four weeks of vacancy per year.
In practical terms, a Costa Blanca landlord renting to locals or year-round expats should expect about 0.5 to 1 month of vacancy annually to account for tenant turnover, cleaning, minor repairs between tenancies, and re-marketing time.
Vacancy rates tend to be higher in purely tourist-focused towns like Benidorm during the winter months, while cities with diverse demand like Alicante maintain lower vacancy because of students, workers, and retirees renting year-round.
The highest tenant turnover in Costa Blanca typically occurs in late spring (May to June) when winter-let tenants leave and in September when summer holiday rentals end, creating brief windows where landlords may struggle to fill units quickly.
We have a whole part covering the best rental strategies in our pack about buying a property in Costa Blanca.
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Where do rentals perform best in Costa Blanca in 2026?
Which neighborhoods have the highest long-term demand in Costa Blanca in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Costa Blanca are Alicante's Centro district, Torrevieja's Centro and El Acequion areas, and Benidorm's Rincon de Loix, all of which attract a steady mix of local workers, retirees, and international residents.
Families looking for long-term rentals in Costa Blanca tend to concentrate in Alicante's Playa de San Juan and Parque Avenidas districts, as well as El Campello and Denia's Centro Urbano, where schools, parks, and year-round services make daily life easier.
Student rental demand in Costa Blanca is strongest in central Alicante near the university transport corridors, particularly in well-connected neighborhoods like Ensanche-Diputacion and Benalua where affordable shared apartments are common.
Expats and international professionals gravitate toward Javea's Arenal and Port areas, Orihuela Costa's La Zenia and Villamartin urbanizations, and Altea's old town, all of which have established international communities and English-speaking services.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Costa Blanca.
Which neighborhoods have the best yield in Costa Blanca in 2026?
As of early 2026, the three neighborhoods offering the best rental yields in Costa Blanca are Alicante's Benalua and Ensanche-Diputacion districts (around 6.5% to 7.5% gross), Torrevieja's Centro and La Mata areas (6% to 7% gross), and parts of Elche's urban core where purchase prices remain well below the coastal average.
These top-yielding neighborhoods in Costa Blanca typically deliver gross rental yields in the 6% to 7.5% range, compared to 4.5% to 5.5% in premium beachfront locations where purchase prices have risen faster than rents.
The main characteristic that allows these neighborhoods to achieve higher yields is their combination of strong rental demand from year-round residents (workers, students, retirees) with property prices that have not yet caught up to the coastal tourism premium.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Costa Blanca.
Where do tenants pay the highest rents in Costa Blanca in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Costa Blanca are Benidorm's Playa de Poniente (around 16 euros per square meter), Alicante's Playa de San Juan-El Cabo (14 to 15 euros per square meter), and Javea's Arenal and Cap Marti areas (13 to 14 euros per square meter).
A standard two-bedroom apartment in these premium Costa Blanca neighborhoods typically rents for 1,100 to 1,400 euros per month (1,150 to 1,470 USD), with penthouses and sea-view units commanding even higher prices.
These neighborhoods command the highest rents because they offer direct beach access, well-maintained promenades, and proximity to restaurants and services, all within a few minutes' walk, which is exactly what both tourists and affluent long-term tenants prioritize.
The typical tenant profile in these highest-rent Costa Blanca neighborhoods includes Northern European retirees seeking quality winter homes, remote workers wanting beachside lifestyle, and families on extended holidays who prefer apartment rentals over hotels.
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 Costa Blanca in 2026?
What features increase rent the most in Costa Blanca in 2026?
As of early 2026, the three property features that increase monthly rent the most in Costa Blanca are air conditioning (essential for the hot summers), a private terrace or balcony with outdoor space, and dedicated parking, especially in older town centers where street parking is scarce.
Air conditioning alone can add a 10% to 15% rent premium in Costa Blanca, as tenants simply will not consider properties without it during the six-month warm season from May to October.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Costa Blanca is a full kitchen renovation with high-end appliances, since most tenants care more about functional basics and outdoor space than designer countertops.
One affordable upgrade that provides strong return on investment for Costa Blanca landlords is installing quality blackout blinds and mosquito screens on windows, which cost under 500 euros but significantly improve livability and tenant satisfaction in coastal properties.
Do furnished rentals rent faster in Costa Blanca in 2026?
As of early 2026, furnished apartments in Costa Blanca typically rent 15% to 25% faster than unfurnished ones, with the difference being most pronounced in international expat hubs like Javea, Orihuela Costa, and Benidorm where tenants expect move-in-ready homes.
Furnished rentals in Costa Blanca generally command a 10% to 20% rent premium over comparable unfurnished units, which usually covers the landlord's furniture investment within two to three years while also reducing vacancy time.
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How regulated is long-term renting in Costa Blanca right now?
Can I freely set rent prices in Costa Blanca right now?
In Costa Blanca, landlords can currently set initial rent prices freely because no municipalities in the Alicante province have been officially declared "tensioned housing market zones" under Spain's 2023 Housing Law as of January 2026.
However, annual rent increases during an existing tenancy are regulated and must follow the IRAV index published by Spain's National Statistics Institute (INE), which has been running at around 2% to 3% in recent readings, so landlords cannot raise rents by arbitrary amounts mid-contract.
What's the standard lease length in Costa Blanca right now?
The standard lease length for residential rentals in Costa Blanca is one year initially, but tenants have the legal right to extend up to five years (if the landlord is an individual) or seven years (if the landlord is a company) under Spain's Urban Leases Act.
The maximum security deposit a landlord can legally require in Costa Blanca for a habitual residence lease is one month's rent as a fianza, plus up to two additional months as a guarantee, meaning a total of roughly three months' rent upfront (around 2,100 to 3,000 euros for a typical apartment).
At the end of a tenancy, landlords in Costa Blanca must return the security deposit within one month unless there are documented damages or unpaid bills, and the deposit is typically held in the regional government's deposit scheme (IBAVI in Valencia Region) though enforcement varies.
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 Costa Blanca in 2026?
Is Airbnb legal in Costa Blanca right now?
Yes, Airbnb-style short-term rentals are legal in Costa Blanca, but you must register your property as a "vivienda de uso turistico" with the Valencia Region's tourism authority and obtain a license number before listing.
To operate legally, you need to register through the Generalitat Valenciana's tourism portal, provide documentation including your cadastral reference and energy certificate, and then display your registration number on all platform listings.
Costa Blanca does not currently impose a blanket annual night limit on short-term rentals, though some building communities prohibit tourist use in their statutes, and Spain's new national registry (Real Decreto 1312/2024) requires platforms to verify registration numbers.
Operating an unlicensed short-term rental in Costa Blanca can result in fines ranging from 10,000 to over 100,000 euros depending on severity, plus potential platform delisting and difficulty obtaining a license later.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Costa Blanca.
What's the average short-term occupancy in Costa Blanca in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Costa Blanca is around 60% to 65%, meaning properties are typically booked for roughly 220 to 240 nights per year.
Depending on location and property quality, short-term rental occupancy in Costa Blanca realistically ranges from 45% in less touristy inland areas to 75% or higher for premium beachfront properties in Benidorm or Calpe.
The highest occupancy months for short-term rentals in Costa Blanca are July and August (often 90% or above), followed by Easter week and the October bank holiday period when domestic Spanish tourists flood the coast.
The lowest occupancy period runs from mid-November through February (excluding Christmas), when occupancy can drop to 30% to 40% unless you attract longer-stay winter tenants from Northern Europe.
Finally, please note that you can find much more granular data about this topic in our property pack about Costa Blanca.
What's the average nightly rate in Costa Blanca in 2026?
As of early 2026, the average nightly rate for short-term rentals in Costa Blanca ranges from around 100 to 140 euros (105 to 147 USD) for a standard one or two-bedroom apartment in popular areas like Benidorm or Calpe.
Across the Costa Blanca market, nightly rates realistically range from 60 to 80 euros (63 to 84 USD) for basic apartments in secondary towns like Torrevieja to 180 euros or more (189 USD) for premium sea-view properties or villas with pools.
The typical nightly rate difference between peak summer season (July to August) and off-season (November to February) in Costa Blanca is around 50 to 80 euros per night, with summer rates often double the winter prices for the same property.
Is short-term rental supply saturated in Costa Blanca in 2026?
As of early 2026, the short-term rental market in Costa Blanca is moderately saturated in prime tourist zones, with strong competition in Benidorm (over 4,000 active listings) and increasing supply pressure in Calpe and Altea as more owners enter the market.
The trend in active short-term rental listings across Costa Blanca has been growing steadily, though new regulatory requirements (Spain's national registry and Valencia Region's tightened enforcement) may slow the pace of new entrants in 2026.
The most oversaturated neighborhoods for short-term rentals in Costa Blanca are Benidorm's Levante beach area, Calpe's Fossa beach zone, and parts of Torrevieja's La Mata, where competition forces owners to cut prices or accept lower occupancy.
Neighborhoods that still have room for new short-term rental supply include parts of Denia's Las Marinas coast, Javea's inland urbanizations, and El Campello, where tourist infrastructure exists but STR density remains lower than Benidorm or Calpe.
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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 Costa Blanca, 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 |
|---|---|---|
| BOE - Urban Leases Act (LAU) | Spain's official, consolidated rental law text. | We used it to explain lease duration, deposit rules, and tenant rights. We relied on it as the legal foundation for what landlords can and cannot do. |
| BOE - Housing Law (Ley 12/2023) | National law introducing key rental market reforms. | We used it to explain rent update rules and tensioned zone regulations. We checked Costa Blanca's status against its provisions. |
| INE - IRAV rent index | Spain's official statistics body publishing the rent update index. | We used it to explain how annual rent increases are capped. We referenced recent values to show what landlords can realistically expect. |
| idealista - Gross yield report | Spain's largest property portal with methodology-backed data. | We used it to anchor baseline gross yield levels for Spain. We then adjusted to Costa Blanca using local rent data from the same source. |
| idealista - Benidorm rent data | Transparent, time-stamped local rent index for a key market. | We used it to quantify the tourism premium in Costa Blanca rents. We compared it to other towns to show the price spread. |
| AirDNA - Benidorm STR data | Widely used short-term rental analytics provider. | We used it to estimate occupancy and nightly rates for Costa Blanca STRs. We cross-checked profitability against long-term renting. |
| Generalitat Valenciana - Tourist housing guidance | Official regional authority guidance for Valencia Region. | We used it to describe STR registration requirements. We verified what the region expects owners to do for legal compliance. |
| BOE - Real Decreto 1312/2024 | Official national decree creating Spain's STR registry. | We used it to explain the new nationwide registration layer. We clarified that platforms now require registry numbers. |
| Spanish National Police - NIE procedure | Official government page for obtaining an NIE. | We used it to explain the key identifier foreigners need. We included it in the admin checklist for buying and renting. |
| AEAT - Modelo 210 | Official tax filing portal for non-resident income. | We used it to explain how foreign landlords declare rental income. We kept the guidance practical rather than technical. |
| MIVAU - Tensioned zone list | Official published list of rent-controlled areas. | We used it to verify Costa Blanca is not subject to rent caps. We avoided guessing by checking the official source. |
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.