Every week we receive inquiries from investors who are considering buying in Torrevieja for vacation rental. The common question: "What yield can I really expect?" This post aims to answer it with real market data and not with marketing figures.
Before crunching numbers: the license. Tourist apartments in the Valencian Community need a regional VFT (Tourist Dwelling) license and must meet minimum equipment requirements (fire extinguisher, first aid kit, complaint forms, energy certificate). Without a license, the risk of sanctions is real — fines starting from 6,000 € for advertisements without visible VFT. If the property has a community of owners and the bylaws prohibit tourist rentals, the license will be denied. Verify this before buying; we also cover this in our guide to buying as a foreigner.
Actual Figures: Gross Income. With a license, a 2-bedroom apartment near Playa del Cura typically generates between 11.000 and 14.000 € gross annually in holiday rentals, with an average occupancy of 65-75% on platforms like Airbnb/Booking. The weeks of July and August can fetch 700-1.100 € per week, while October-March drop to 350-500 €/week.
Approximate seasonal distribution of the €12,000 gross: July-August usually contribute 40-45% of the total (5,000-5,500 €); June and September, another 25% (3,000 €); April, May, and October, 15% (1,800 €); the rest of the year, 15-20% (1,800-2,300 €). This distribution is important because fixed costs are not distributed equally.
Detailed operating costs: Professional cleaning (35-50 € per changeover, ~30-50 changeovers per year = 1.200-2.500 €), utilities with uncapped consumption (electricity/water/gas/Wi-Fi 1.200-1.800 €/year), community fees (40-100 €/month = 480-1.200 €/year), multi-risk insurance (200-300 €), repairs and replacements (budget for 600-900 €/year), professional management (15-20% of revenue = 1.700-2.800 €). Total everything: 4.380-9.500 € in annual operating costs.
Reasonable net profitability: 4-6% annual on the purchase price for a well-selected deal. Concrete example: apartment 130.000 € + 13.000 € in associated costs = total investment 143.000 €. Expected net income 6.000-8.500 € → net profitability 4,2-5,9%.
But this isn't the full picture: property appreciation. Torrevieja has been rising between 4 and 7% annually over the last 5 years in central areas. If you combine rental yield (4-6%) with appreciation (4-7%), the total return can be 8-12% annually. Over 5 years, a 130.000 € property can increase to 165.000-180.000 € in market value.
Risks to consider: (1) Regulatory changes — the Valencian Community may toughen VFT regulations as Catalonia has already done. (2) Tourist saturation — in very dense areas, competition drives prices down. (3) Homeowner associations that prohibit tourist rentals by statutes. (4) Unexpected management costs (breakdowns, replacements).
Selection Recommendations: Apartments with 2 bedrooms near the beach, with an elevator, terrace, and air conditioning in central areas offer the best price/yield ratio. Avoid apartments without an elevator on high floors, homes with humidity problems, or large communities with frequent special assessments. Selection is what separates a 4% yield from an 8% yield.
If you're interested in crunching numbers on a specific property, tell us what budget you have and what type of area you prefer and we'll put together a realistic spreadsheet with expected income, costs, and net profitability. You can also explore the catalog by filtering by areas with the best projection.