Investing

Investing in Short-Term Rentals on the Costa del Sol

The Costa del Sol continues to shine as one of Europe’s most desirable investment destinations. With its 320+ days of sunshine, stunning Mediterranean coastline, rich culture, and vibrant towns like Marbella, Estepona, and Mijas, this region offers unmatched potential for short-term rental investments.

In 2024, tourism on the Costa del Sol hit a record high, welcoming over 12.5 million visitors. Meanwhile, Airbnb named Málaga the #1 travel destination for 2023, and demand shows no signs of slowing down. As we look ahead to 2026, now is the time to plan and invest.

At 4yourhome.es, we specialise in helping buyers tap into the region’s booming short-term rental market with expert guidance, local insight, and full-service property management.

Rental Yields & Market Growth in 2025

The Costa del Sol continues to deliver impressive returns:

Rental prices have reached €15.19/m², up 10.07% year-over-year
Property purchase prices in Málaga province rose 21.9% in the last 12 months, now averaging €3,600/m²

These figures make a compelling case for short-term rental investments, particularly when managed efficiently.

Key Considerations Before Investing

Regulatory Compliance

Andalusia has introduced tighter regulations to balance tourism with housing availability:

All short-term rentals must be registered with a VFT license (Vivienda con Fines Turísticos)
Zoning restrictions apply in some areas
Minimum stay requirements and energy efficiency standards are being enforced
Regulations vary by municipality, so working with a local expert like 4yourhome.es is crucial to remain compliant

Community Rules Matter

Homeowners’ Associations (Comunidad de Propietarios) can vote to ban or limit short-term rentals
Some communities enforce minimum stays, guest limits, or outright bans
Always verify urbanization rules before purchasing, especially in sought-after areas like Marbella and Puerto Banús

At 4yourhome.es, we review community statutes for our clients as part of our acquisition support service.

Best Areas for Investment

Here are some of the most profitable and in-demand areas for short-term rentals on the Costa del Sol:

Marbella & Puerto Banús – High-end luxury appeal with year-round international tourism
Estepona – Fast-growing with new developments and strong family-market appeal
Benalmádena – Excellent for holiday lets and long weekends with great rental yields
Mijas & La Cala de Mijas – Popular with digital nomads and golf tourists, offering charm and accessibility

Each area attracts a different rental demographic. At 4yourhome.es, we tailor property selection to match your ideal guest profile.

Taxes & Costs to Know

When investing, plan for the following:

Property Transfer Tax (ITP): 7–10% depending on property type (new build or resale)
Annual Taxes: Real estate tax (IBI) varies by town; plus, community fees
Rental Income Tax:
EU/EEA residents: 19%
Non-EU residents: 24%
Deductions: Spanish tax residents can deduct expenses like maintenance, interest, and community fees

We partner with licensed accountants to ensure you stay compliant and maximise your net income.

Why Choose 4yourhome.es?

We offer full-service property solutions for short-term rental investors, including:

✅ Property sourcing & purchase assistance

✅ Legal & regulatory guidance

✅ VFT license application

✅ Turnkey setup (furnishing, photography, listing creation)

✅ Ongoing property & guest management

✅ Income reporting & performance optimisation

Whether you’re a first-time investor or expanding your portfolio, 4yourhome.es helps you make profitable, stress-free property investments on the Costa del Sol.

Ready to Invest in Your Costa del Sol Property?

The demand for short-term rentals shows no sign of slowing down – 2026 is already booking fast. Now is the perfect time to invest in a vacation property that works for you year-round.

Investing in Short-Term Rentals on the Costa del Sol