Spain, Costa del Sol 2026: 3 rental types under the microscope
Short-term vs. medium-term and long-term rental comparison: Yields, 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 sought-after destinations in Europe, not only for property sales but also for rentals. However, in 2025, the rules for renting property in Spain changed fundamentally - not due to a drop in demand, but due 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 mandatory prior consent from the community of owners for any new tourist license VFT (Vivienda de Fines Turísticos) in apartment buildings. For investors and buyers who have already invested or are just thinking about investing in buying a property and then renting it out on the Costa del Sol, understanding these changes is key - there is no reason to panic if you know what to look out for.
Three types of rental: definition and legal framework in Andalusia
1. Short-term rental — VFT (up to 1 month)
This is renting out to tourists for days or 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 (Vivienda de Fines Turísticos) license and registration of guests in the police system (Registro de Viajeros).
Legal conditions:
- Platná licencia VFT registrovaná v 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 just those present at the meeting). Without this consent, the Junta de Andalucía will not issue a new license.
2. Medium-term rental — MTR (1 to 11 months)
Rental for a period of one to eleven months, typically for digital nomads, expats, seasonal workers, people renovating their own property or professionals on a working 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 veto power
- More stable income than short-term, higher than long-term
- Fewer check-ins and guest rotation
- Growing demand due to the explosion of remote work
3. Long-term rental — LTR (12 months or more)
Classic lease to residents for a minimum of one year. Also governed by LAU and no special community consent or license is required . The tenant has legally protected rights - including pre-emptive right to renew the contract and protection against termination.
Rental legislation — important for 2026: Spain caps annual rent increases at the CPI. Stricter restrictions apply in areas declared as "tight housing markets". The Costa del Sol has not yet been declared a zone across the board, but this could change — stay tuned for updates on the legislation.
Owner community consent: when is it mandatory and when is it not?
This is a question that buyers and investors ask most often. The answer depends on the type of lease and the date of the application .
- New VFT license (short-term, after 2025): ✅ MUST HAVE! — 3/5 majority of all owners
- Existing VFT license (property purchase): ❌ NOT REQUIRED! - 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 Owners' Association may amend the bylaws and prohibit future tourist rentals by a three-fifths majority. However, this decision cannot retroactively revoke valid VFT licenses that were issued before this decision was made.
Special rule for single-family homes and villas: Single-family homes and villas are not subject to the Ley de Propiedad Horizontal — meaning they do not require the consent of any community of homeowners. The VFT tourist license is still required, but the approval of the neighbors is not. This is one of the reasons why villas are an increasingly interesting investment option in 2026 .
Golden rule for investors: property with a valid VFT tourist license
If you buy a property that already has a valid VFT tourist license , you can continue short-term rentals 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 change of ownership to the Junta de Andalucía within 30 days of 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 transfer.
- The community of owners was not allowed to prohibit tourist rentals in the bylaws before this particular license was issued
Tip for buyers: Always ask your real estate agent to verify the validity of the VFT tourist license. Your Spanish lawyer must verify that the community statutes do not prohibit tourist rentals, an extract from the Registro de Turismo and the latest minutes of the community meetings. We provide all these necessary verifications for our clients in cooperation with a Czech or Slovak speaking lawyer.
Yield comparison: short-term vs. medium-term vs. long-term rental
Gross revenue 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%
Benalmádena
- 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%
The Cove of Mijas
- Short-term (VFT): 5.5–7.5%
- Medium-term (MTR: 4.5–6%
- Long-term (LTR): 4–5%
Marbella / Puerto Banús
- 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 may be higher.
Operating costs
Short-term rental:
- Property management and rental: 18–25% of booking revenue
- Cleaning after each guest: €40–150 / stay
- Platform fees (Airbnb, Booking): 3–5%
- Community fees + IBI + insurance: from approx. EUR 1,500 (depending on several factors)
- Maintenance and wear: higher than long-term
Medium-term rental:
- Management and rental: 8–12% of annual rent
- Lower rotation, less cleaning
- Tenant pays most utilities
Long-term rental:
- Management and rental: 6–10% of annual rent
- Minimum operating load
- Higher risk of a 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 rate (ADR) increases by 40–80% compared to the base. Easter (Semana Santa) and school holidays (February, October) generate higher yields.
Good months (65–80% occupancy): 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 (30–55% occupancy): December, January and half of February are historically the weakest months for pure summer destinations. December suffers especially - most people spend Christmas at home and tourist interest in the Costa del Sol drops significantly during this month. But well-managed properties in locations with year-round infrastructure (golf, wellness, proximity to the city) still achieve 40–60% occupancy in these months.
Winter strategy: Offer 28–90-day stays at a discounted monthly rate to digital nomads and Northern European retirees (the so-called wintering segment) who are happy 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's are the exceptions - short stays with premium ADR are realistic these days.
Long and medium term rental - seasonality
These types of rentals are much less seasonally dependent. 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: what type of rental are they best for?
Nerja and Torrox - short-term rentals in an authentic environment
Nerja is a small town with huge caves, beautiful beaches and year-round demand from British and German tourists. Typical VFT yield: 5-7%. Demand from long-term tenants is lower — the market is smaller and less diversified than in Marbella or Fuengirola.
Recommendation: short-term rental, ideal apartments with sea views 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, it is one of the fastest growing tourist destinations in the region. The long sandy promenade (Paseo Marítimo), excellent gastronomy, lower tourist density compared to Fuengirola, Benalmádena, or Torremoinos and still affordable property prices make it an interesting opportunity for investors looking for higher potential for value growth.
Short-term rental yields are around 5-7%, with well-located apartments within walking distance of the beach and close to the promenade reaching 7-8% with professional management. Demand is mainly from Spanish tourists from the hinterland and a growing segment of foreign visitors from Germany and the Netherlands.
Recommendation: short-term rental as the main strategy; medium-term stays for digital nomads in the winter months. Excellent opportunity for investors with a lower entry budget.
Málaga city - medium and long term rental
The center of Malaga is experiencing an explosion of demand from professionals, digital nomads and students. The regulation of short-term rentals (STR) is stricter in the city center (city ordinances restrict new licenses in some zones).
Recommendation: medium-term rental 1–6 months for working expats; long-term for families with children. Long-term rental yields (LTR) reach 4.5–6% in the downtown and Soho neighborhoods.
Torremolinos - a historic tourist bastion with year-round infrastructure
Torremolinos is the oldest tourist centre on the Costa del Sol and still one of the most visited destinations on the entire coast. Malaga airport is only 4 km away (accessible by train, car), which means a year-round influx of short-term tourists and business travelers. The city's infrastructure, numerous restaurants, bars, shops and nightlife make Torremolinos a great bastion for short-term rentals with very low seasonal fluctuations.
Short-term rental yields: 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, creating a more attractive price-to-income ratio. Torremolinos also has a strong LGBTQ+ tourism segment, which generates demand all 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 out of season. Yields from short-term rentals: 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
Fuengirola is the optimal location on the entire coast for many investors: train connection to Malaga and easy access to Marbella, affordable prices, strong British and Scandinavian demand.
Recommendation: best short-term rental apartments within walking distance of the beach. Yields 6–8%, with the best located units even 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 cities of Marbella and Fuengirola. Malaga airport is only about 30 minutes by car.
Recommendation: short-term rental with golf partnership; in winter, medium-term 1–3 month stays, mainly for those inquiring from Nordic countries.
Marbella and Puerto Banús — premium ADRs, lower gross yield
Marbella is synonymous with luxury and liquidity. Known worldwide and in high demand all year round. Loved by everyone – beach, golf, nature, culture and history lovers. 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 fast and close to the asking price.
Recommendation: short-term rental for HNWI investors; long-term for expat families looking for access to international schools.
Estepona — the best value for money
Estepona, also called the "Garden of the Costa del Sol", is still one of the most interesting locations for new investors in 2026: new promenades, revitalized old town, growing marina and prices more favorable than in Marbella. More greenery, fewer tourists than in Marbella, excellent beaches, golf courses. Yields from short-term rentals: 5–7%.
Recommendation: 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. Its strengths are international schools (Sotogrande International School), polo clubs, marina and a quiet lifestyle for wealthy families. The second Marbella, but fewer tourists, high standard, lots of greenery, peace, many 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 large golf tournaments.
Renting houses and villas 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 - and for one key reason: detached villas are not subject to the obligation to obtain the approval of the homeowners' 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 (hill)
- 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%
Benahavís / 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 rentals generate much higher absolute income in the high season - a villa with a pool in Marbella can earn €5,000–25,000 per week in July–August.
Why villas are becoming increasingly interesting in 2026
After the amendment to the Horizontal Property Law, investors are increasingly looking at villas precisely because of the simplified licensing. The demand for villas with a pool and private garden has increased significantly after 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 the high season, which reduces the cost of guest rotation.
Best locations for villa rentals: Marbella and the surrounding area (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 stable. 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 property with regard to legislation, location and real yield.
After the amendment to the Ley de Propiedad Horizontal, the difference between an apartment without a license, an apartment with a VFT and a villa has become a fundamental investment factor.
If you buy today without verification:
- VFT license status,
- community statutes,
- as well as real estate,
you risk turning your investment into just 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.