I’ve been looking at properties lately, mainly considering buying a small apartment in a southern tourist area. The idea is to rent it out during the high season in summer for some income and occasionally use it for my own holidays. After doing some research, I’ve found there’s a lot more to it than meets the eye, so I wanted to discuss it and hear about your experiences.
The biggest draw is definitely the high rental income during the peak season. In places like Málaga and Alicante, a week’s rent for a well-located two-bedroom apartment in July or August can equal a whole month’s rent during the off-season. But the risks are just as clear: it’s highly seasonal. Once the low season hits, your rental property might sit empty, a key risk of buying a property in Spain, and you have to factor in vacancy costs. Moreover, community fees and IBI tax in tourist areas are usually higher than in regular residential zones.
Key Points to Consider Before Investing
The most crucial thing is obtaining the tourist license (licencia turística). Regulations are getting stricter across Spain, especially in places like Barcelona and Mallorca, where getting a new license has become extremely difficult. Before buying, you absolutely must confirm with the real estate agent and your lawyer whether the property can be legally used for short-term rentals. Otherwise, you’re in for a world of trouble. Don’t fall for an agent’s line that ‘everyone rents without a license’; if a neighbor reports you, the fines are high enough to make you question all your life choices.
A Simple Income and Cost Analysis
I’ve put together a very rough estimate based on a €150,000 apartment in the south. Take a look and feel free to correct my numbers:
| Item | Estimated Amount (€) | Notes |
|---|
| High-Season Rental Income | 12,000 | Assuming 120 rental days per year |
| Low-Season Rental Income | 2,000 | Sporadic rentals |
| Less: Property Management Fee | -1,800 | Calculated at 15% of total rent |
| Less: IBI + Waste Tax | -500 | Varies by region |
| Less: Utilities (Water, Electricity, Internet) | -1,200 | Often included in short-term lets |
| Less: Maintenance & Depreciation | -1,000 | Furniture/appliance repair & replacement |
| Profit Before Tax | 9,500 | Not including personal income tax |
Overall, it seems that to make this work, you either need to live nearby and manage it yourself, or you have to find a very reliable property management company, which will eat into a significant chunk of your profits. I’m curious to know what kind of real return on investment others are getting from their buy-to-let properties in tourist areas. Any recommendations for cities or pitfalls to avoid? Let’s discuss! Looking for guidance!
