Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Malaga's property market is included in our pack
Malaga has become one of Spain's hottest rental markets, attracting foreign investors who want steady income from Mediterranean real estate.
But the rules in Malaga are changing fast, especially for short-term rentals, and what worked two years ago might not work today.
This guide breaks down everything you need to know about renting out property in Malaga in 2026, with real numbers and updated regulations.
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 Malaga.
Insights
- Malaga's gross rental yields average around 4.6% in 2026, but one-bedroom apartments can reach 5.6% in the right neighborhoods.
- The city has implemented an 8% saturation cap rule that blocks new short-term rental registrations in many central neighborhoods.
- Non-resident landlords in Malaga must file Modelo 210 quarterly with Spain's tax authority, even when operating entirely remotely.
- Long-term rents in Malaga now average around 16 euros per square meter, with Centro reaching nearly 17 euros per square meter.
- Short-term rentals in Malaga achieve roughly 68% average occupancy, but this drops significantly in properties without air conditioning or independent access.
- Neighborhoods like Cruz de Humilladero and Bailén-Miraflores offer better yields because purchase prices lag behind rent levels.
- Furnished apartments in Malaga rent about 10 to 15% faster than unfurnished ones, driven by student and expat demand.
- The average nightly rate for Malaga short-term rentals sits around 130 euros, though this swings between 80 and 200 euros by season.
Can I legally rent out a property in Malaga as a foreigner right now?
Can a foreigner own-and-rent a residential property in Malaga in 2026?
As of early 2026, Spain does not ban foreign individuals from owning residential property in Malaga and renting it out, so you have the same ownership rights as Spanish citizens.
The most common ownership structure for foreigners is direct personal ownership using your NIE (tax identification number), though some investors use a Spanish limited company when managing multiple properties.
The main difference you will face as a foreign landlord in Malaga is not about ownership rights but about tax treatment, since non-residents must file rental income through Modelo 210 and pay taxes on gross income without the expense deductions that residents enjoy.
If you're not a local, you might want to read our guide to foreign property ownership in Malaga.
Do I need residency to rent out in Malaga right now?
No, you do not need Spanish residency to rent out a property in Malaga, and many foreign landlords successfully manage their investments entirely from abroad.
However, you will need a Spanish tax identification number (NIE) to legally collect rental income and file your quarterly Modelo 210 returns with the Agencia Tributaria.
A local Spanish bank account is not strictly mandatory, but it makes your life much easier because tenants prefer paying via Spanish IBAN and utilities often require local direct debits.
Managing a Malaga rental remotely is entirely feasible if you hire a local property manager or agency to handle tenant relations, maintenance, and key handovers.
Thinking of buying real estate in Malaga?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What rental strategy makes the most money in Malaga in 2026?
Is long-term renting more profitable than short-term in Malaga in 2026?
As of early 2026, short-term rentals in Malaga can still generate higher gross revenue than long-term leases, but only if your specific property qualifies for a tourist rental license in your specific neighborhood.
A well-managed short-term rental in a compliant Malaga location might earn 15,000 to 25,000 euros per year (roughly 16,000 to 26,000 USD), while a comparable long-term rental would typically bring in 10,000 to 14,000 euros annually (roughly 10,500 to 14,700 USD).
Properties in central Malaga with independent street access, air conditioning, and proximity to the beach or historic center tend to favor short-term renting, but these are exactly the areas where new tourist rental registrations are now most restricted.
What's the average gross rental yield in Malaga in 2026?
As of early 2026, the average gross rental yield for residential properties in Malaga city sits around 4.6%, though this varies significantly by property type and neighborhood.
Most residential properties in Malaga fall within a gross yield range of 4% to 5.8%, with the variation depending on purchase price, location, and unit size.
One-bedroom apartments in Malaga typically achieve the highest gross yields, often reaching 5.5% to 5.6%, because their lower purchase prices combine with strong rental demand from students and young professionals.
By the way, we have much more granular data about rental yields in our property pack about Malaga.
What's the realistic net rental yield after costs in Malaga in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Malaga lands between 2.8% and 4.2%, depending on your ownership structure and management approach.
Most landlords in Malaga actually experience net yields in the 3% to 3.8% range once all recurring expenses are subtracted from their gross rental income.
The three main cost categories that reduce gross yield in Malaga specifically are comunidad fees (which average 50 to 150 euros monthly in most buildings), non-resident income tax (which is charged on gross rent without expense deductions), and property management fees (which run 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 Malaga.
What monthly rent can I get in Malaga in 2026?
As of early 2026, typical monthly rents in Malaga are roughly 550 to 650 euros for a studio (580 to 680 USD), 870 to 1,030 euros for a one-bedroom (915 to 1,080 USD), and 1,260 to 1,500 euros for a two-bedroom (1,320 to 1,575 USD).
A decent studio apartment in Malaga can realistically rent for 500 to 700 euros per month (525 to 735 USD), with the lower end in peripheral neighborhoods and the higher end in central or coastal areas.
A typical one-bedroom apartment in Malaga commands 850 to 1,100 euros per month (890 to 1,155 USD), depending on whether it has features like air conditioning, a lift, and a balcony.
A standard two-bedroom apartment in Malaga rents for 1,200 to 1,600 euros per month (1,260 to 1,680 USD), with premium locations like Centro Histórico or La Malagueta pushing toward the higher end.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Malaga.
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 Malaga in 2026?
What's the total "all-in" monthly cost to hold a rental in Malaga in 2026?
As of early 2026, the total monthly cost to hold and maintain a typical rental property in Malaga ranges from 220 to 520 euros (230 to 545 USD), covering owner-side expenses only and excluding any utilities passed to tenants.
Most standard rental apartments in Malaga fall within a 250 to 450 euro monthly cost range (260 to 470 USD), though this increases if you add property management fees for remote ownership.
In Malaga specifically, comunidad fees tend to be the largest single contributor to monthly holding costs, often running 60 to 150 euros per month depending on whether your building has a pool, lift, or concierge services.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Malaga.
What's the typical vacancy rate in Malaga in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Malaga city falls between 5% and 8%, which translates to roughly three to four weeks of vacancy per year.
A landlord in Malaga should realistically budget for 0.6 to 1 month of vacancy per year because even in a high-demand market you will face tenant turnover gaps, minor refurbishment windows, and occasional slower leasing periods.
The main factor that causes vacancy rates to differ across Malaga neighborhoods is the balance between supply and tenant demand, with areas like Teatinos showing lower vacancy due to constant student turnover while peripheral zones can sit empty longer.
In Malaga, the highest tenant turnover and vacancy typically occurs in late summer (August and September) because this is when student leases end and families relocate before the school year.
We have a whole part covering the best rental strategies in our pack about buying a property in Malaga.
Get fresh and reliable information about the market in Malaga
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Where do rentals perform best in Malaga in 2026?
Which neighborhoods have the highest long-term demand in Malaga in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Malaga are Teatinos-Universidad, Centro Histórico, and Carretera de Cádiz (including Huelin), all of which combine jobs, transit, and daily amenities.
Families looking for long-term rentals in Malaga gravitate toward El Limonar, Cerrado de Calderón, and Pedregalejo because these neighborhoods offer good schools, quieter streets, and larger apartments.
Students searching for rentals in Malaga concentrate heavily in Teatinos-Universidad, El Ejido, and Ciudad Jardín because these areas provide affordable housing within walking or short transit distance to the University of Malaga campus.
Expats and international professionals renting in Malaga tend to prefer La Malagueta, Soho, and Centro Histórico because these neighborhoods offer walkable urban lifestyle, restaurants, and proximity to the waterfront.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaga.
Which neighborhoods have the best yield in Malaga in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Malaga are Cruz de Humilladero, Bailén-Miraflores, and Ciudad Jardín, all of which offer stronger rent-to-price ratios than the city average.
These top-yielding Malaga neighborhoods typically achieve gross rental yields in the 5% to 6% range, compared to the citywide average of around 4.6%.
The main characteristic that allows these neighborhoods to achieve higher yields is that purchase prices have not caught up with rent growth, meaning you pay less per square meter to buy but collect competitive monthly rent from working-class and student tenants.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Malaga.
Where do tenants pay the highest rents in Malaga in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Malaga are Centro Histórico, La Malagueta, and Soho, with average asking rents reaching 17 euros per square meter (roughly 18 USD per square meter).
A standard apartment in these premium Malaga neighborhoods typically rents for 1,100 to 1,800 euros per month (1,155 to 1,890 USD), depending on size, floor level, and whether it has a terrace or sea views.
The main characteristic that makes these neighborhoods command the highest rents is their combination of walkable historic charm, coastal proximity, and concentration of restaurants and cultural attractions that appeal to higher-income tenants.
Tenants who rent in these highest-rent Malaga neighborhoods are typically young professionals in tech or remote work, international executives on corporate relocations, and affluent retirees seeking urban Mediterranean lifestyle.
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 Malaga in 2026?
What features increase rent the most in Malaga in 2026?
As of early 2026, the three property features that increase monthly rent the most in Malaga are air conditioning (absolutely essential in this hot climate), a private terrace or balcony (highly valued for outdoor lifestyle), and a lift in buildings above the second floor.
Air conditioning alone can add a 10% to 15% rent premium in Malaga because summers regularly exceed 35 degrees Celsius and tenants simply will not rent apartments without it.
One commonly overrated feature that Malaga landlords invest in but tenants do not pay much extra for is high-end kitchen appliances, since most renters care more about having a functional kitchen than having premium brand equipment.
One affordable upgrade that provides strong return on investment in Malaga is installing quality blackout blinds and efficient split-system air conditioning, which together can cost under 2,000 euros but significantly reduce vacancy time and justify higher rent.
Do furnished rentals rent faster in Malaga in 2026?
As of early 2026, furnished apartments in Malaga typically rent 10 to 20 days faster than unfurnished ones because the city's large population of students, expats, and medium-term tenants prefer move-in-ready options.
Furnished apartments in Malaga generally command a rent premium of 10% to 20% over unfurnished equivalents, though this comes with higher wear-and-tear costs and more frequent tenant turnover.
Get to know the market before you buy a property in Malaga
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How regulated is long-term renting in Malaga right now?
Can I freely set rent prices in Malaga right now?
In Malaga, landlords generally have freedom to set initial rent prices by agreement with tenants because Spain does not impose blanket rent control at the starting point of most leases.
However, once a lease is signed, annual rent increases during the tenancy are now capped by Spain's national reference index (IRAV), which limits how much you can raise rent each year and prevents landlords from applying large mid-contract increases.
What's the standard lease length in Malaga right now?
The standard lease length for residential rentals in Malaga follows Spain's national LAU framework, which gives tenants the right to stay for up to five years when renting from an individual landlord (seven years if renting from a company).
Landlords in Malaga can legally require a security deposit of one month's rent for unfurnished housing leases, though additional guarantees like bank guarantees or extra deposits are sometimes negotiated for higher-value properties.
At the end of a tenancy in Malaga, landlords must return the security deposit within one month unless there are documented damages or unpaid bills, and any deductions must be justified with evidence.
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 Malaga in 2026?
Is Airbnb legal in Malaga right now?
Airbnb-style short-term rentals can be legal in Malaga, but the real question in 2026 is whether your specific property in your specific neighborhood qualifies for a tourist rental registration under the city's tightening rules.
To operate a short-term rental in Malaga, you need to register your property as a "vivienda con fines turísticos" (VFT) under Andalusian regional rules, but Malaga city now blocks new registrations in many central and saturated neighborhoods.
Malaga does not impose a simple annual night cap like some European cities, but instead restricts where new tourist rentals can operate based on an 8% saturation threshold per neighborhood and requirements like independent street access in many zones.
Operating an unlicensed or non-compliant short-term rental in Malaga can result in fines ranging from several thousand euros up to 150,000 euros for repeated violations, plus forced closure and removal from booking platforms.
What's the average short-term occupancy in Malaga in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Malaga sits around 65% to 70%, with AirDNA reporting approximately 68% as a headline benchmark.
Most short-term rentals in Malaga experience occupancy rates between 55% and 75%, with well-located and well-equipped properties at the higher end and less differentiated listings struggling at the lower end.
The highest occupancy months for Malaga short-term rentals are typically June through September and during Easter week, when tourist arrivals peak and nightly rates also reach their maximum.
The lowest occupancy months for Malaga short-term rentals are typically January and February, when tourism drops significantly and landlords must lower prices or accept longer vacancy gaps.
Finally, please note that you can find much more granular data about this topic in our property pack about Malaga.
What's the average nightly rate in Malaga in 2026?
As of early 2026, the average nightly rate for short-term rentals in Malaga is approximately 110 to 150 euros (115 to 160 USD), with AirDNA reporting an average daily rate of around 130 euros.
Most short-term rental listings in Malaga fall within a nightly rate range of 70 to 200 euros (75 to 210 USD), depending on location, size, amenities, and whether the property has sea views or a terrace.
The typical nightly rate difference between peak season (summer) and off-season (winter) in Malaga is roughly 40 to 80 euros (42 to 84 USD), with July and August commanding premium rates and January seeing significant discounts.
Is short-term rental supply saturated in Malaga in 2026?
As of early 2026, the short-term rental market in Malaga is officially considered saturated in many central neighborhoods, which is exactly why the city has implemented registration caps and zoning restrictions.
The number of active short-term rental listings in Malaga has been growing steadily, but new registrations are now being blocked in areas that exceed the 8% saturation threshold set by municipal planning rules.
The most oversaturated neighborhoods for short-term rentals in Malaga include Centro Histórico, La Malagueta, and Soho, where existing supply already exceeds the city's tolerance limits and new licenses are essentially unavailable.
Neighborhoods that still have room for new short-term rental supply in Malaga include some peripheral areas like Campanillas, Churriana, and parts of Teatinos, though these locations have weaker tourist demand and lower nightly rates.
Don't lose money on your property in Malaga
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 Malaga, 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 (Spain's Official State Gazette) - LAU | It's the official, legally binding text for Spain's long-term rental rules. | We used it to explain standard lease structures, deposits, and tenant protections. We also used it to define what "long-term rental" legally means in Malaga. |
| Agencia Tributaria (AEAT) | It's Spain's tax authority and the primary source for non-resident rental income rules. | We used it to describe Modelo 210 filing requirements for foreign landlords. We also used it to outline the practical tax checklist for remote Malaga landlords. |
| Junta de Andalucía (BOJA) | It's the official Andalusian regulation governing short-term tourist rentals. | We used it to explain the legal basis for Airbnb-style rentals in Malaga. We also used it to distinguish tourist rentals from normal residential leases. |
| Ayuntamiento de Malaga (Urbanismo) | It's the city's official planning portal for binding zoning changes. | We used it to explain where you can and cannot register new tourist rentals in Malaga. We also used it to frame STR strategy as neighborhood-dependent. |
| idealista (Sala de prensa) | It's Spain's largest housing portal with consistent rent indices. | We used it to estimate current market rent ranges by district in Malaga. We also used it to convert euros per square meter into realistic monthly rent examples. |
| Tinsa | It's a major Spanish valuation firm with documented price indices. | We used it as a second price anchor alongside idealista for realistic purchase prices. We also used it to explain why asking prices and valuations can differ. |
| Global Property Guide | It publishes comparable city-level yield tables with clear methodology. | We used it as a neutral benchmark for Malaga gross yields by property type. We also used its guidance to keep net yield estimates realistic. |
| INE (National Statistics Institute) | It's Spain's official statistics body with tax-declaration-based rent data. | We used it to describe how rents move over time using an official source. We also used it to cross-check portal rent inflation narratives. |
| AirDNA | It's a leading short-term rental data provider used by STR analysts. | We used it to estimate realistic STR occupancy and nightly rate expectations. We also used it to discuss saturation with actual supply and demand metrics. |
| Colegio de Registradores | It's a top-tier transaction source based on property registry data. | We used it to ground foreign buying activity using registry-based statistics. We also used it to avoid relying on opinion articles for market trends. |
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.