Comparison of short-term vs. medium and long-term rental
Revenues, licenses, rules 2026, from Torremolinos to Sotogrande. Where and what is really worth it?
The Costa del Sol has long been one of the most popular destinations in Europe, not only for real estate sales, but also for rent. In 2025, however, the rules for renting real estate in Spain changed fundamentally - not due to a drop in demand, but thanks to new legislation that rewrites the rules of the game for short-term tourist rentals in apartment buildings.
What's new for rentals on the Costa del Sol in 2026?
The Horizontal Property Law — Ley de Propiedad Horizontal — was amended by Organic Law 1/2025 and introduced the mandatory prior approval of the community of owners for each new VFT (Vivienda de Fines Turísticos) tourist license in apartment buildings. For investors and buyers from the Czech Republic or Slovakia who have already invested or are just planning to invest in the purchase of real estate and then rent it on the Costa del Sol, understanding these changes is crucial - there is no reason to panic if you know what to focus on.
Three types of tenancy: definition and legal framework in Andalusia
1. Short-term rental — VFT (up to 1 month)
It is a rental to tourists for days to weeks through platforms such as Airbnb, Booking, or your own website. In Andalusia, it is subject to Decreto 28/2016 and requires registration with the Junta de Andalucía — the so-called VFT license (Vivienda de Fines Turísticos) and guest registration in the police system (Registro de Viajeros).
Legal conditions:
- Valid VFT license registered in the Registro de Turismo de Andalucía
- Air conditioning in bedrooms and living room
- First aid kit
- Book of Complaints (Hoja de Reclamaciones)
- Energy certificate (EPC/CEE)
- Registration of each guest with the police within 24 hours
New condition from 2025 (Organic Law 1/2025): For new applications for a VFT license in an apartment building, the prior consent of the community of owners is mandatory - by a qualified majority of 3/5 of all owners (not only those present at the meeting). Without this approval, the Junta de Andalucía will not issue a new license.
2. Medium-term rental — MTR (1 to 11 months)
Rent for a period of one to eleven months, typically for digital nomads, expats, seasonal workers, people renovating their own property or professionals on a work stay. This type of rental is governed by the Ley de Arrendamientos Urbanos (LAU) and does not require a VFT tourist license or the consent of the community of owners .
Key benefits for the investor:
- Lower regulatory burden — no VFT tourist license required
- The community of owners has no right of veto
- More stable income than short-term, higher than long-term
- Less check-ins and guest rotation
- Growing demand thanks to the explosion of telecommuting
3. Long-term rental — LTR (12 months and more)
Classic rent to residents for at least one year. It is also governed by LAU and no special community approval or license is required . The tenant has rights protected by law - including the right of pre-emption to renew the contract and protection against termination.
Rent legislation — important for 2026: Spain limits annual rent increases to the CPI index. In areas declared a "tight housing market", stricter restrictions apply. The Costa del Sol is not yet universally declared such a zone, but the situation may change — watch for legislative updates.
Community ownership consent: when it is required and when it is not
This is the question that buyers and investors ask themselves most often. The answer depends on the type of lease and the date of the request .
- New VFT license (short-term, after 2025): ✅ MUST BE! — 3/5 majority of all owners
- Existing VFT license (property purchase): ❌ NOT REQUIRED! - the license is transferred with the property
- Medium-term rental (1-11 months, LAU): ❌ NOT REQUIRED!
- Long term rental (12+ months, LAU): ❌ NOT REQUIRED
Important Note: The community of owners can change the bylaws to prohibit future tourist rentals by a three-fifths majority. However, this decision cannot retroactively cancel valid VFT licenses that were issued before the adoption of this decision.
Special rule for detached houses and villas: Detached villas and detached houses do not fall under the Ley de Propiedad Horizontal — that is, the consent of any community of apartment owners is not required for them. A VFT tourist license is still required, but neighbor approval is not. This is one of the reasons why villas are an increasingly interesting investment alternative in 2026 .
Golden rule for investors: a property with a valid VFT tourist license
If you buy a property that already has a valid VFT tourist license , you can continue the short-term rental without the need for new community approval . This applies under the following conditions:
- The license must be valid and active at the time of sale — check with the Registro de Turismo de Andalucía (RTA)
- The new owner must notify the Junta de Andalucía of the change of ownership within 30 days of the purchase - this is a formal notification obligation, not a new application
- The property must continue to meet the technical requirements of Decreto 28/2016 — air conditioning, equipment, energy certificate
- The license must not be suspended or subject to administrative proceedings at the time of the transfer
- The community of owners was not allowed to prohibit tourist rentals in the bylaws prior to the issuance of this particular license
Tip for buyers: Always ask your real estate agent to verify the validity of the VFT tourist license. Your Spanish lawyer must verify that there is no ban on tourist rentals in the community's bylaws, an extract from the Registro de Turismo and the most recent minutes of the community's meetings. We provide all these necessary verifications for our clients in cooperation with a Czech or Slovak speaking lawyer.
Comparison of returns: short-term vs. medium term vs. long-term lease
Gross yield by rental type and location (2026)
Nerja / Torrox
- Short-term (VFT): 5–7%
- Medium-term (MTR: 4-5.5%
- Long-term (LTR): 3.5–5%
Torre del Mar / Vélez-Málaga
- Short-term (VFT): 5–7%
- Medium-term (MTR: 4-5.5%
- Long-term (LTR): 3.5–5%
Torremolinos
- Short-term (VFT): 6–8%
- Medium-term (MTR: 4.5–6%
- Long-term (LTR): 4–5%
Benalmadena
- Short-term (VFT): 6–8%
- Medium-term (MTR: 4.5–6%
- Long-term (LTR): 4–5%
Fuengirola / Los Boliches
- Short-term (VFT): 6–8%
- Medium-term (MTR: 5–6.5%
- Long-term (LTR): 4.5–5.5%
La Cala de Mijas
- Short-term (VFT): 5.5–7.5%
- Medium-term (MTR: 4.5–6%
- Long-term (LTR): 4–5%
Marbella / Puerto Banus
- Short-term (VFT): 4–6%
- Medium-term (MTR: 3.5-5%
- Long-term (LTR): 3–4.5%
Estepona
- Short-term (VFT): 5–7%
- Medium-term (MTR: 4-5.5%
- Long-term (LTR): 3.5–5%
Sotogrande
- Short-term (VFT): 3–4.5%
- Medium-term (MTR: 4-5.5%
- Long-term (LTR): 3.5–5.5%
Note: With a well-managed property in a top location, the yield can be higher.
Operating costs
Short-term rental:
- Property management and rental: 18-25% of booking income
- Cleaning after each guest: 40-150 € / stay
- Platform fees (Airbnb, Booking): 3-5%
- Community fees + IBI + insurance: from approx. 1,500 EUR (depending on several factors)
- Maintenance and wear and tear: higher than long-term
Medium-term rental:
- Management and rental: 8-12% of the annual rent
- Lower rotation, less cleaning
- Tenant pays most utilities
Long-term rental:
- Management and rent: 6-10% of the annual rent
- Minimum operating load
- Higher risk of non-paying tenant (longer eviction process)
Seasonality: best and worst months to rent
Short-term rental - monthly occupancy
Excellent months (occupancy 85-100%): July and August are the absolute peak - the average daily price (ADR) rises by 40-80% compared to the base. Easter (Semana Santa) and holidays during the school year (February, October) generate a higher yield.
Good months (occupancy 65-80%): May, June and September are the golden months on the Costa del Sol - pleasant weather, fewer crowds, still high demand. Golf tourists and digital nomads extend the season into October and November.
Weaker months (occupancy 30-55%): December, January and mid-February are historically the weakest months for purely summer destinations. December suffers especially - most people spend Christmas at home and tourist interest in the Costa del Sol drops significantly in this month. But well-managed properties in locations with year-round infrastructure (golf, wellness, proximity to the city) reach 40-60% occupancy even in these months.
Strategy for the winter months: Offer 28-90-day stays at a discounted monthly price to digital nomads and northern European retirees (the so-called winter segment) who like to trade the gloom for the sun. This tactic can increase occupancy by 15-25% during this period. New Year's Eve and New Year are exceptions - short stays with premium ADR are realistic these days.
Long-term and medium-term rental - seasonality
These types of rental are much less seasonal. Demand is stable throughout the year - with a slight increase in August-September, when expat families are looking for housing before the start of the school year.
Locations from Nerja to Sotogrande: which type of rental are they best for?
Nerja and Torrox - short-term rental in authentic surroundings
Nerja is a small town with huge caves, beautiful beaches and year-round demand from British and German tourists. Typical VFT yield: 5-7%. There is less demand from long-term tenants — the market is smaller and less diversified than in Marbella or Fuengirola.
Recommendation: short-term rental, ideal apartments with a sea view within walking distance of the beach
Torre del Mar and Vélez-Málaga - an underrated gem with growing potential
Torre del Mar is a coastal part of the city of Vélez-Málaga on the Costa del Sol East - that is, on the "east coast" between Málaga and Nerja, a stone's throw from the city of Malaga. In 2026, they are among the fastest growing tourist destinations in the region. The long sandy promenade (Paseo Marítimo), excellent gastronomy, lower density of tourists compared to Fuengirola, Benalmádena or Torremoinos and still affordable real estate prices make them an interesting opportunity for investors looking for a higher potential for growth in value.
Income from short-term rentals is at the level of 5-7%, while well-located apartments within walking distance of the beach and near the promenade reach 7-8% with professional management. The demand is mainly made up of Spanish tourists from the interior and a growing segment of foreign visitors from Germany and the Netherlands.
Recommendation: short-term rental as the main strategy; in the winter months, medium-term stays for digital nomads. An excellent opportunity for investors with a lower entry budget.
Málaga city - medium and long-term rental
The center of Málaga is experiencing an explosion of demand from professionals, digital nomads and students. Regulation of short-term rentals (STR) is stricter in the city center (city ordinances restrict new licenses in some zones).
Recommendation: medium-term rental of 1-6 months for working expats; long-term for families with children. Long-term rental yields (LTR) are 4.5-6% in the downtown and Soho neighborhoods.
Torremolinos - historical tourist bastion with year-round infrastructure
Torremolinos is the oldest tourist center of the Costa del Sol and still one of the most visited destinations on the entire coast. Málaga airport is only 4 km away (accessible by train, car), which means a year-round supply of short-term tourists and business travelers. The city's infrastructure, the abundance of restaurants, bars, shops and nightlife make Torremolinos a great bastion for short-term rentals with very little seasonal variation.
Short-term rental income: 6-8%, for apartments within walking distance of La Carihuela or Playa Bajondillo and similar. Property prices are still lower than in Benalmádena or Marbella, which creates a more attractive price-to-income ratio. Torremolinos also has a strong LGBTQ+ tourist segment that generates demand year-round.
Recommendation: short-term rental with an emphasis on year-round occupancy; investors looking for a better price-to-yield ratio compared to Benalmádena will find interesting opportunities here.
Benalmádena - family demand with year-round occupancy
Excellent accessibility from the airport - by car, train (15 minutes), developed tourist infrastructure - marina, water park, cable car, attractions for the whole family - and strong demand even in the off-season. Short-term rental income: 6-8%.
Recommendation: preferably short-term rental; in the winter months, combine with medium-term stays.
Fuengirola and Los Boliches — highest consistent occupancy on the coast
For many investors, Fuengirola is an optimal location on the entire coast: train connections to Malaga and easy access to Marbella, affordable prices, strong British and Scandinavian demand.
Recommendation: best short-term apartment rental within walking distance from the beach. Yields 6-8%, with the best located units also 8-10%.
Mijas Costa and La Cala de Mijas — golf and beach in one
La Cala de Mijas is a very popular and highly sought after location all year round thanks to its combination of sandy beaches, golf and excellent gastronomy, as well as its proximity to the towns of Marbella and Fuengirola. And Malaga airport is only about 30 minutes away by car.
Recommendation: short term rental with golf partnership; in winter, medium-term stays of 1–3 months, mainly for inquirers from the Nordic countries.
Marbella and Puerto Banús — premium ADRs, lower gross yield
Marbella is synonymous with luxury and liquidity. Known all over the world and in high demand throughout the year. It is loved by all – lovers of beaches, golf, nature, culture and history. The entry price compresses the gross yield (4-6%), even higher with good management, but the absolute numbers are high thanks to the premium ADR. Second hand sales in Marbella are quick and close to the asking price.
Recommendation: short-term rental for HNWI investors; long term for expat families looking for international school availability.
Estepona — the best ratio of value and growth
Estepona, also called the "Garden of the Costa del Sol" is still one of the most interesting locations even for new investors in 2026: new promenades, a revitalized old town, a growing marina and prices more favorable than in Marbella. More greenery, less tourists than in Marbella, excellent beaches, golf courses. Short-term rental income: 5-7%.
Recommendations: short-term rentals in new communities within walking distance of beaches; medium term for seasonal workers and expats in the winter months.
Sotogrande — long-term rental with premium tenants
Sotogrande is not a typical tourist destination. Strengths are international schools (Sotogrande International School), polo clubs, a marina and a peaceful lifestyle for wealthy families. The second Marbella, but less tourists, high standard, lots of greenery, quiet, lots of sports options, etc. Short-term rental yields are lower (3.5-5%), but long-term rentals reach 4-6% with extremely high-quality tenants.
Recommendation: preferably medium and long-term rental; short term only for half season and major golf tournaments.
Homes and villas for rent on the Costa del Sol: a special opportunity
While most rental discussions revolve around apartments, villas and family homes represent a separate and increasingly attractive investment category - for one key reason: detached villas are not subject to the requirement to obtain the consent of the homeowner community for a VFT tourist license.
Villa rental income by location
Nerja (surroundings)
- Short term (VFT) - villa: 5-7%
- Long Term (LTR) - Villa: 3.5-5%
Fuengirola (hills)
- Short term (VFT) - villa: 5-6.5%
- Long Term (LTR) - Villa: 4-5%
Mijas Pueblo (hills)
- Short term (VFT) - villa: 5-7%
- Long Term (LTR) - Villa: 4-5%
Marbella / Golden Mile
- Short term (VFT) - villa: 4-6%
- Long Term (LTR) - Villa: 3-4%
Benahavis / La Zagaleta
- Short term (VFT) - villa: 3-5%
- Long Term (LTR) - Villa: 3-4.5%
Estepona (hills)
- Short term (VFT) - villa: 5-7%
- Long Term (LTR) - Villa: 3.5-5%
Sotogrande
- Short Term (VFT) - Villa: 3.5-5%
- Long Term (LTR) - Villa: 4-6%
Note: Short-term villa rental generates much higher absolute income in high season - a pool villa in Marbella can earn €5,000-€25,000 per week in July-August.
Why villas are becoming more and more interesting in 2026
After the amendment to the Ley de Propiedad Horizontal, investors are increasingly looking at villas precisely because of the simplified licensing. Demand for villas with a pool and private garden has increased significantly since the pandemic and is trending upwards - families and groups of friends prefer private villas to hotels. The average length of stay in a villa is 7-14 nights in high season, which reduces the cost of guest rotation.
The best locations for renting villas: Marbella and the surrounding areas (Golden Mile, Sierra Blanca, Nagüeles) remain the most profitable in terms of absolute income. For better value for money, look for villas in the hills above Estepona, around Nerja or in Mijas Pueblo - entry prices are lower, but demand from European tourists is steady. Sotogrande excels in long-term rentals for families with children in international schools - annual rents for representative villas here reach €36,000-€60,000 per year.
Conclusion: Your strategy for rentals on the Costa del Sol in 2026
The Costa del Sol remains one of the most attractive rental markets in Europe in 2026. However, the decisive factor is no longer "buying by the sea", but buying the right type of real estate with regard to legislation, location and real income.
After the amendment of the Ley de Propiedad Horizontal, the difference between an apartment without a license, an apartment with VFT and a villa became a fundamental investment factor.
If you buy today without verification:
- VFT license status,
- community statutes,
- as well as real estate,
you risk turning the investment into an expensive vacation property.
If you send me:
- your budget,
- preferred location,
- objective (yield / value growth / combination),
I will prepare an offer tailored to your requirements:
info@casamejor.eu