Buy-to-Let on Costa Blanca 2026: Realistic Month-by-Month Income
Alicante province rental yield closed Q1 2026 at 6.2% gross. On a typical €155k Torrevieja apartment that lands at €725-€850/month long-let or €1,250-€1,800/month short-let in peak season. Working town-by-town math for buyers comparing Costa Blanca buy-to-let realistically.
Alicante province gross rental yield closed Q1 2026 at 6.2%, per the Idealista quarterly rentabilidad report. Spain national average sat at 6.7%, down from 7.3% a year earlier. Rent prices nationally rose 7.1% year-on-year. For a foreign buyer comparing Costa Blanca towns on Costa Blanca buy-to-let in 2026, the headline yield masks a wide range: Torrevieja runs 6-7% on long-lets, Calpe 5-7%, Denia 4-6%. The real question is not the percentage. It is the monthly cash that lands in your account after costs.
This piece walks through the math on entry-tier Costa Blanca buy-to-let stock at the price points we actually have live this week, broken out by town, broken out by long-let versus short-let, with the cost stack peeled back honestly.
Costa Blanca yields by town: 2026 snapshot
Gross yield (annual rent / asking price, before any costs) by town based on Q1 2026 portal data:
| Town | Long-let yield (gross) | Short-let yield (gross, well-run) | Typical 2-bed entry price |
|---|---|---|---|
| Torrevieja | 6.0% - 7.0% | 6.5% - 8.0% | €125k - €180k |
| Pilar de la Horadada / Lo Romero | 5.5% - 6.5% | 6.0% - 7.5% | €140k - €220k |
| Orihuela Costa | 5.5% - 6.5% | 6.0% - 7.5% | €140k - €210k |
| Algorfa (La Finca golf belt) | 5.5% - 6.5% | 6.5% - 8.0% | €155k - €220k |
| Villajoyosa | 5.0% - 6.0% | 5.5% - 7.0% | €170k - €280k |
| Calpe | 5.0% - 7.0% | 6.0% - 8.5% | €280k - €380k |
| Benidorm | 4.5% - 6.0% | 6.0% - 8.5% | €220k - €320k |
| Denia | 4.0% - 5.5% | 5.0% - 7.0% | €280k - €400k |
| Altea (incl. Altea Hills) | 3.5% - 5.0% | 4.5% - 6.5% | €340k - €500k+ |
The pattern is consistent: yield runs inverse to price tier. Torrevieja delivers the highest gross yield in the Costa Blanca area, partly because entry prices stay €1,200-€1,900 per m² built, partly because year-round rental demand from retirees and remote-work residents keeps occupancy steady through the off-season.
Why Alicante province trails the Spain national average
Spain national gross yield (6.7%) tops Alicante (6.2%) because the national figure is pulled up by Murcia capital (7.5%), Castellón (7.2%) and several inland Andalusia provinces. The Mediterranean coast does not chase the highest yields; it pairs moderate yield (4-7%) with stronger price growth and the highest non-resident demand. For a buyer comparing Costa Blanca against pure-yield destinations, that trade-off matters.
Monthly income math: €155k Torrevieja apartment, long-let
Working numbers for an actual entry-tier listing in our current catalog: WG-14 - Torrevieja apartment €155,000, 42 m². Long-let assumption: monthly rent €725-€850 depending on furnishing and exact location within Torrevieja. Take the midpoint, €787/month.
| Line | Amount (€/year) | Note |
|---|---|---|
| Gross annual rent | €9,444 | €787/month × 12 |
| Gross yield | 6.1% | On €155k purchase price |
| Less: IBI (Torrevieja council tax) | -€420 | ~0.55% on cadastral value |
| Less: Comunidad (small complex, pool) | -€900 | €75/month typical |
| Less: Building insurance | -€280 | Required by lender |
| Less: Property management (8% of rent) | -€756 | Local agency, tenant changes + maintenance |
| Less: Maintenance reserve (5%) | -€472 | Boiler, A/C, appliances over time |
| Less: One-month vacancy reserve | -€787 | Between tenants, typical |
| Net before tax | €5,829 | Net yield 3.8% |
| Less: Non-resident IRNR (24% non-EU) | -€1,399 | Modelo 210, see our tax guide |
| Net after tax (non-EU) | €4,430 | 2.9% net yield, €369/month landing |
| Net after tax (EU/EEA, with deductions) | €5,180 | 3.3% net, €432/month landing |
The Modelo 210 line is the biggest tax surprise foreign buyers run into. EU/EEA residents can deduct expenses (mortgage interest, IBI, comunidad, insurance, management fees, repairs, depreciation), which often takes the taxable base from €9,444 gross down to €3,000-€4,000. Non-EU residents (UK after Brexit, US, MENA, Asia) cannot deduct anything and pay 24% on the full gross rent. The post-tax delta between EU and non-EU on the same €155k Torrevieja flat: roughly €750/year.
Same €155k apartment, short-let scenario
If the same WG-14 Torrevieja flat runs as a Vivienda de Uso Turístico (VUT short-let), the math shifts:
| Line | Amount (€/year) | Note |
|---|---|---|
| Peak season nightly (Jun-Sep) | €95-€130 | 110 nights occupancy typical |
| Shoulder nightly (Apr-May, Oct) | €65-€85 | 55 nights typical |
| Off season (Nov-Mar) | €50-€70 | 40 nights typical, weekly contracts |
| Annual occupancy (well-run) | 200-220 nights | ~60% utilisation |
| Gross annual rent (avg €82 × 200 nights) | ~€16,400 | Indicative |
| Gross yield | 10.6% | On €155k purchase |
| Less: 30% all-in costs (mgmt, comunidad, IBI, supplies) | -€4,920 | Short-let costs are higher than long-let |
| Net before tax | €11,480 | 7.4% net |
| Less: Non-resident IRNR (24% non-EU on gross) | -€3,936 | Modelo 210 quarterly |
| Net after tax (non-EU) | €7,544 | 4.9% net, €629/month |
Short-let net beats long-let by roughly €260/month on this property. But the trade-off is real:
- Active management required: cleaning crew, key handover, calendar maintenance, guest support
- Higher comunidad-statute risk: some Torrevieja complexes prohibit VUT by community vote (always check before you offer)
- Seasonality: 110 of your 200 paid nights happen in 4 months; one bad summer hurts the year
- Insurance + utilities run higher
We see the best results when buyers use short-let only for the first 2-3 years (faster cash recovery) then convert to long-let once equity covers the mortgage to free up time.
Where the yield-focused Costa Blanca stock sits today
Five concrete entry-tier picks from our current live inventory across the three highest-yield CB micro-markets:
Torrevieja (highest gross yield)
- WG-14 - Torrevieja apartment, 42 m², €155,000 ★ featured. Own-stock, walking distance to amenities, suited to long-let from day one.
- WES-18039-rev - 2-bedroom Torrevieja apartment, 59 m², €129,900. Cheapest entry in the high-yield bracket, slightly older complex.
Algorfa (La Finca golf belt, mid-tier yield)
- WG-16 - 1 Bedroom Penthouse, Algorfa, 53 m², €159,000 ★ featured. Own-stock, golf-area, slightly higher short-let nightly rate.
- WES-2227 - 2 Bedroom Apartment, Algorfa, 67 m², €158,202. 2-bed in same La Finca cluster, family-target tenant pool.
Orihuela Costa (mid-tier yield + capital growth)
- WES-2240 - 1 Bedroom Apartment, Lomas de Cabo Roig, 52 m², €147,500. Coastal location, close to La Zenia retail, year-round rental demand from young retiree pool.
If you want broader market view in these brackets:
- Sub-€200k Torrevieja apartments only - typically 40+ active listings under this filter
- Pilar de la Horadada, full sale catalog - 59 listings, lower entry prices than Torrevieja, similar yields
- Villajoyosa sale catalog - 17 active listings, slightly higher capital growth lever than Torrevieja
Three risks every Costa Blanca buy-to-let buyer underprices
1. Comunidad votes special levies every 6-10 years
The comunidad (homeowners association) can vote special levies of €600-€2,500 one-off for pool resurfacing, road repaving, or perimeter wall repairs. These hit the owner regardless of whether the unit is rented or empty. The seller is not legally required to disclose pending votes, but the minutes of the last annual meeting are open to any prospective owner on request. Always pull two years of minutes before you offer.
2. Comunidad statutes can ban short-let
Several Orihuela Costa, Punta Prima and modern Torrevieja complexes voted comunidad statutes restricting Vivienda de Uso Turístico in 2023-2024 in response to noise complaints. The statute overrides the regional VUT licence. If you bought planning to short-let and the statute forbids it, you are limited to long-let at lower yield. Always confirm with the administrador de fincas before you offer if short-let income is part of the plan.
3. Comunidad Valenciana VUT licence rules tightened in 2024
Decreto 9/2024 introduced stricter compliance: licence per unit (not per owner), municipal town hall must not have an active moratorium, mandatory guest registration with the Spanish national police, mandatory tax ID and quarterly Modelo 210 filing. Some town halls (Valencia city, Barcelona) have declared full moratoriums. Costa Blanca towns generally do not, but the regulatory direction is one-way. Build the cost of VUT compliance (€350-€700/year per unit) into your model.
Sub-€200k Costa Blanca buy-to-let summary
| Town | Yield range (long/short) | Entry €/m² | Pros | Risk |
|---|---|---|---|---|
| Torrevieja | 6-7% / 6.5-8% | €1,200-€1,900 | Highest gross yield, year-round demand | Saturated market, slower price growth |
| Algorfa | 5.5-6.5% / 6.5-8% | €1,800-€2,500 | Golf premium on short-let | Smaller renter pool |
| Pilar de la Horadada | 5.5-6.5% / 6-7.5% | €1,400-€2,100 | Cheapest entry on the southern belt | Less established expat infrastructure |
| Orihuela Costa | 5.5-6.5% / 6-7.5% | €1,800-€2,700 | Stronger capital growth | More VUT statute restrictions |
What we do for buy-to-let buyers
Three concrete services bundled:
- Yield projection on any specific listing. Send us a URL of any Costa Blanca property you are considering and we return a one-page projection: realistic long-let rent based on comparable rentals within 500m, short-let revenue based on actual Airbnb/Booking calendar data for comparable units, all-in cost stack, EU vs non-EU IRNR delta. Free for buyers we are working with.
- Yield-led shortlist. Tell us your bracket (€100k-€200k, €200k-€350k, etc.) and target net yield (3%? 5%?), and we send back a 3-property shortlist with pre-run yield math. Saves you the spreadsheet work.
- Post-purchase letting setup. Trusted local property managers in Torrevieja, Orihuela Costa and Algorfa. VUT licence application coordination. Modelo 210 quarterly filing via our partner abogados (€120-€180/quarter for short-let, €350-€450/year for long-let).
Read next
- Investing in Spanish coastal property 2026: a working guide for foreign buyers. The broader macro framework: yield vs growth, four cost lines, three buyer profiles.
- Where rental yields beat 6% on the Spanish coast in 2026. Town-by-town yield breakdown beyond Costa Blanca.
- Modelo 210 explained: non-resident tax on Spanish property 2026. The IRNR mechanics that drove the EU vs non-EU delta in the math above.
- Spanish mortgages for non-residents 2026. Four lender banks, current rates, LTV ceilings.
- Capital growth: which Spanish coastal towns beat inflation 2020-2026. For the growth half of the yield-versus-growth decision.
For a yield projection on a specific listing you are considering, send us the URL and we will return the full math within 24 hours. We refuse to send you 50 listings when 5 actually fit your yield target.
By Oleg Fesechko, founder of Wesna Group.
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