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 31 Dec 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 the AADE short-term rental registry
• Property Registry Number (AMA) required
• Stay declarations are generally due by the 20th of the following month
• From 1 Oct 2025: civil-liability insurance plus minimum safety/quality standards apply
• Individuals with 3+ STR properties (or any legal entity) are generally treated as a business and 13% VAT may apply.
Always verify the exact operating model and current local restrictions before underwriting.
Why Invest Now?
Current Position (31 Mar 2026):
✓ VAT suspension on qualifying new builds remains available until 31 Dec 2026
✓ Capital gains tax on property transfers remains suspended until 31 Dec 2026
✓ Sale prices continued rising through Q4 2025, though growth is moderating
✓ Long-term rental demand remains strong in major cities and constrained-supply markets
✓ Golden Visa still creates demand in selected segments, especially compliant single-asset and conversion cases
Indicative Returns:
• Core cities: roughly 4-6% gross long-term yield
• Stronger value-add / selected neighborhoods: often ~5-7% gross
• Prime tourism markets usually rely more on appreciation and seasonal upside than on headline long-term yield