Top 5 Long-Term Rental ?Methodology
Weighted: Net Yield 60%, Liquidity 20%, Growth 20%. Minimum samples: STR ≥80 & ≥55% occupancy; LTR ≥60; Sales ≥50 (12m). Small markets down‑weighted.
Top 5 Short-Term Rental ?Methodology
STR list filters very small markets and favors stable occupancy/ADR across seasons. Local caps/insurance may apply.
Top 5 for Resale/Flip ?Methodology
Based on YoY price growth, transaction volume, and time‑on‑market with outlier control.
Golden Visa Opportunities
Transaction Costs Breakdown
Buying Costs (% of price):
• Property Transfer Tax: 3.09%
• Notary Fees: 1.0-1.5%
• Legal Fees: 0.5-1.0%
• Real Estate Agent: ~2.0%
• Engineer Inspection: Variable
Total: ~6.5–8% of purchase price
Totals on resales typically ~7–10% including transfer tax, notary/registry, legal and agency fees (ranges vary).
Note: 24% VAT on new builds suspended until Dec 31, 2026
Ongoing Costs
Annual Operating Expenses:
• Visitor/climate-resilience fee on short stays (seasonal, from 2025)
• ENFIA (Property Tax): Variable by location/size
• Maintenance: 1.0-2.0% of value
• Insurance: 0.2-0.5%
• Management (if rented): 8-12%
• HOA Fees: Variable
Typical Total: 20-30% of rental income
Rental Income Tax Rates
Individual Tax Brackets:
• €0 - €12,000: 15%
• €12,001 - €35,000: 35%
• Over €35,000: 45%
Corporate Rate: 22% flat
Capital Gains Tax:
Suspended until end of 2026
Short-Term Rental Rules
Legal Requirements:
• Up to 2 properties typically remain outside VAT; managing 3+ properties is generally treated as a business (VAT and possible GNTO licensing may apply).
• 90-day cap (60 on small islands) may apply; check local and exception rules.
• Must register on AADE platform
• Property Registry Number (AMA) required
• Electronic income declaration mandatory
• From Oct 1, 2025: mandatory civil-liability insurance and safety/quality standards for short-term rentals
• Individuals with 3+ STR properties (or any legal entity) are treated as businesses and charge 13% VAT.
Income taxed at individual rates above
Why Invest Now?
Current Advantages (2025-2026):
✓ VAT suspended on new builds
✓ No capital gains tax until 2026
✓ Rising property values
✓ Strong rental demand
✓ Stable economic environment
✓ Golden Visa opportunities
Typical Returns:
• Cities: 4-7% rental yield
• Tourist areas: 8-10% yield
• Capital appreciation: 5-15%/year