Where rental yields beat 6% on the Spanish coast in 2026

Spain's residential gross rental yield closed Q1 2026 at 6.7% according to Idealista's quarterly report, six tenths of a point below where it sat a year earlier. The east coast still beats that line in several towns. Murcia capital leads all 50 Spanish provincial capitals at 7.5%. Castellón sits at 7.2%. Madrid, by contrast, runs at 4.7%. The towns where 6%+ still holds up are not random. They share a profile worth understanding before you buy.

The 2026 yield map at a glance

Idealista's Q1 2026 rentabilidad bruta report (the gross yield = annual rent / asking price, before any costs) shows a clear north-to-south spread across Spanish provincial capitals.

Spanish capital	Gross yield Q1 2026	Direction vs 2025
Murcia	7.5%	Top in Spain
Segovia	7.3%	Stable
Lleida	7.3%	Stable
Castellón de la Plana	7.2%	Stable
Huelva	7.2%	Stable
Jaén	7.2%	Stable
National average (residential)	6.7%	-0.6 pp YoY
Valencia capital	~5.9%	Down slightly
Barcelona	5.2%	Down YoY
Madrid	4.7%	Down YoY

Three of the top six gross-yield capitals sit along the east coast that Wesna covers: Murcia (anchor of Costa Cálida), Castellón (between Valencia and Tarragona), and the Valencian region generally. The pattern is consistent: smaller capitals with steady rental demand and lower entry prices beat the headline-grabbing big cities every quarter.

Resort towns sit slightly below capital cities in the data because Idealista's official yield figures cover provincial capitals only. Town-level yields (Torrevieja, Calpe, Denia, Benidorm) are derived by local agencies dividing actual lettings by asking prices in the same zone. Treat town-level numbers as "approximate" rather than official Idealista figures.

What 6.7% gross actually becomes

Gross yield is the headline. Net is what lands in your account. A €240,000 two-bed apartment in Las Marinas, Denia, let on a long-term contract at €1,000 per month, looks like this:

Line	Amount	Note
Gross annual rent	€12,000	€1,000 × 12 months
Gross yield	5.0%	12,000 ÷ 240,000
Less: IBI (council tax)	-€650	Denia 1.05% on cadastral value
Less: Comunidad fees	-€1,440	€120/month, pool + lift building
Less: Building insurance	-€320	Required for mortgage
Less: Property management (10%)	-€1,200	Local agency, tenant changes + maintenance
Less: Maintenance reserve (5%)	-€600	Boiler, A/C, appliances over time
Less: One-month vacancy reserve	-€1,000	Between tenants, typical
Net before tax	€6,790	Net yield ~2.8%
Less: Income tax (non-resident, 24%)	-€1,629	Modelo 210, quarterly
Net after tax	€5,161	~2.1%

EU residents pay 19% on rental income instead of 24% and can deduct expenses (the non-resident regime cannot deduct most costs). Same property, EU-tax-resident owner: net after tax climbs to roughly 2.6%.

Two takeaways. First: a "6%" gross yield in a brochure usually lands at 2-3% net in your bank. Second: the gap between EU and non-EU tax treatment is meaningful. If you plan to become a Spanish tax resident through NLV, DNV, or Beckham regime, run the numbers both ways.

Where east-coast yields beat the national line

The towns that consistently show town-level gross yields at or above 6% on Costa Blanca and Costa Cálida share a profile: lower entry prices per square metre, year-round expat tenants, and apartment-heavy supply rather than villa-heavy.

Local agency data (not Idealista official) places the strongest performers in this range:

• Torrevieja: gross yields around 6.0-7.0%, driven by year-round Northern European retirees and apartment-dense supply. Average price per m² around €2,300 keeps the denominator low. Browse Torrevieja listings.
• Punta Prima (Torrevieja zone, just south): around 6.4% gross. Higher tourist crossover, slightly higher rents.
• Benidorm: 6.0-8.0% gross, the highest on Costa Blanca. Year-round demand from a large tourist base + retired population. The price you pay is a town with a very specific character that is not for every buyer.
• Cabo de las Huertas (Alicante city outskirts): around 5.3%. Lower than Torrevieja because villa-heavy supply with bigger ticket sizes.
• Calpe: 5.0-7.0% range depending on zone. The waterfront commands premium but yields compress; the inland and second-line areas keep 6%+ in play.
• Cartagena and Los Alcázares (Costa Cálida): town-level data suggests around 6.0-7.0% gross. Lower entry prices than Costa Blanca North + steady seasonal demand.

The towns that consistently DON'T beat the national 6.7% gross line: Denia, Javea, and Moraira. Their average per-m² prices sit higher (€3,300, €3,600, and €3,800 respectively per Idealista's January 2026 index), which compresses gross yield even when rents are strong. These towns work better for capital growth + lifestyle than for cash yield. Browse Costa Blanca North listings.

Where the upside is right now

Two patterns are repeating across the data we see in Wesna's own MASA-fed inventory.

Pattern one: small-ticket apartments in second-line beach towns. A 2-bed apartment 200 m from sand, €170,000-€220,000 asking price, year-round long-term tenant at €900-€1,100. That math gives a 5.5-6.5% gross. Net after costs and non-resident tax sits in the 2.5-3.5% range. The advantage is liquidity. Properties in this band sell fast if you ever need to exit.

Pattern two: mid-band properties in capital-of-province towns. Murcia city, Cartagena, Alicante outside the historic centre. Entry tickets €150,000-€250,000 for a 2-bed. Domestic Spanish tenants, longer contracts (3 to 7 years), less turnover, less management headache. Gross yields 6.5-7.5%. Net 3.0-4.0%.

What to skip if cash yield is your goal: villa-heavy supply on prime coast (Les Rotes in Denia, Cabo Roig in Orihuela, sea-front Calpe), city-centre prestige in Madrid or Barcelona, and luxury new-builds. They appreciate (sometimes) but yields stay below 4% net.

A note on tourist licences. Short-term holiday let (under 31 days) was the easy path to 8%+ yields pre-2024. The Valencia regional moratorium on new VFT tourist licences since 2024 closed that door for most new buyers. If your seller's property already holds a valid licence, the licence transfers. If not, count on long-term-only and price your yield accordingly.

Risks worth pricing in

• Existing-contract rent control. Rent increases on existing contracts are capped at IRAV (Reference Index for Housing Rentals, published by INE), which sat at +2.16% YoY in February 2026. New-contract rents move freely. If you buy with an existing tenant, factor in the IRAV cap on your projection.
• Tax residency drag for non-residents. 24% flat rate on rental income, no expense deduction for most categories. The real tax difference between EU and non-EU residency status is 5-15 percentage points off your net yield.
• Mortgage rate moves. Euribor settled around 2.2-2.5% through Q1 2026 according to Bank of Spain data, well below the 3.7-4.0% peak of late 2023. A non-resident mortgage today carries roughly 3.5-4.2% interest. If you leverage your yield, the spread between gross yield and mortgage rate is now under 2 pp. Compressed.
• Tourist licence policy direction. Valencia regional government has signalled further restrictions through 2026 and 2027. Plan for long-term lettings as the default route, not the fallback.
• Liquidity concentration risk. Concentrated exposure to Torrevieja or Benidorm means concentrated exposure to one tenant pool. If British or Northern European demand softens, those markets feel it first.

FAQ

What is a realistic net yield in 2026?

For a non-resident owner letting long-term on Costa Blanca, expect 2.0-3.5% net after tax on a 2-bed apartment bought between €170,000 and €260,000. EU-resident owners (NLV, DNV, Beckham residents) can deduct most expenses and pay 19% instead of 24%, lifting net to 2.5-4.0%. Treat any agency promising 5%+ net as either short-term-licensed or selling you the gross number.

Why is Murcia capital the highest-yield Spanish capital?

Lower entry prices (€/m² well below the national average) and a strong domestic-tenant base. Demand from public sector workers, the local university, and steady Costa Cálida tourism keeps occupancy high. The gap between the yield-friendly inland capitals and the lifestyle-friendly coastal towns shows up clearly in Idealista's quarterly report.

Is buy-to-let still viable on the Spanish coast?

Yes, with realistic expectations. The 6-7% gross yield range on Costa Blanca South (Torrevieja, Punta Prima) and Costa Cálida (Murcia capital, Cartagena, Los Alcázares) gives meaningful long-term real returns once you account for property appreciation. Don't expect short-term cashflow to fund a lifestyle. Do expect a balanced asset with rental income covering most ownership costs and tax.

What's the difference between long-term and short-term letting yields?

Short-term (tourist) lettings produced 8-10% gross historically on Costa Blanca North. The Valencia tourist-licence freeze since 2024 made that route inaccessible to new buyers without an inherited licence. Long-term lettings cap out around 6-7% gross but come with single tenant relationships, less management, and zero exposure to seasonal vacancy. Long-term is the path most non-resident buyers should plan for in 2026.

How does Euribor affect my yield decision?

Cheaper credit increases what investors can pay, which compresses gross yields over time. Today's lower Euribor pushed Spanish residential yields down from 7.3% (Q1 2025) to 6.7% (Q1 2026) per Bank of Spain data and Idealista's index. If you lock a fixed-rate mortgage today and rates fall further, your yield-on-cost stays where you fixed it. If you go variable, you may see margin improve, but exposed to upside rate moves too.

Browse buy-to-let candidates

The shortlist for cash yield on our inventory: Torrevieja apartments, Punta Prima zone, Los Alcázares apartments, Cartagena, and Calpe apartments (inland and second-line, not the waterfront).

For broader lifestyle-first buyers comparing capital growth potential, Denia, Javea, and Moraira sit lower on yield but higher on resilience and resale.

If you want help running the net-yield math on a specific listing before you offer, get in touch and we will walk through it with you using your tax status, mortgage assumptions, and target hold period.

By Oleg Fesechko, founder of Wesna Group.