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Buy-to-let property on the western Costa del Sol. Rental yields of 4-7% gross in Manilva, Casares, Estepona. Expert guidance for non-resident investors.
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Buy-to-let investment on the western Costa del Sol is driven by a straightforward equation: lower purchase prices than the prime coast, comparable or stronger rental demand, and yields that consistently outperform Marbella and Benalmádena.
Manilva, Casares, Estepona, and the surrounding corridor attract a steady stream of holidaymakers in summer and a growing long-term rental market year-round. International remote workers, retirees, and families relocating to Spain create demand that doesn't disappear when the tourist season ends.
| Location | Avg price/m² | Short-let gross yield | Long-let gross yield |
|---|---|---|---|
| Manilva | €2,700-€3,800 | 5-7% | 3-5% |
| Casares | €2,500-€3,500 | 4-6% | 3-4% |
| Estepona | €4,500-€7,000 | 4-6% | 3-4% |
| La Duquesa | €3,000-€4,000 | 5-7% | 3-5% |
| Sabinillas | €2,500-€3,500 | 4-6% | 3-4% |
| Sotogrande | €5,000-€8,000 | 3-5% | 2-4% |
Source: Directimo Costa del Sol yields report and comparable sales data.
Higher headline yield but more management-intensive. You'll need a VFT (Vivienda con Fines Turísticos) tourist rental licence from the Junta de Andalucía under Decreto 28/2016. Peak season runs from June to September, with shoulder seasons in spring and autumn. Occupancy of 70% to 85% is realistic for well-located, well-presented properties.
Costs to budget: property management (15-20% of rental income), cleaning between guests, platform fees (Airbnb/Booking.com take 3-15%), utilities, linen, and maintenance.
Important note: Manilva Town Council has suspended new VFT licences for three years. If short-let income is central to your strategy, check licence eligibility for your specific property or development before committing.
Lower yield but predictable income and minimal management. Long-let demand in the western corridor is strong, driven by professionals working in Estepona and Marbella who prefer the lower cost of living in Manilva and Casares. Tenant turnover is low. Management costs are lower (8-12% of rent).
Spain's tenancy reform (Ley 12/2023) strengthens tenant protections. Understand the regulatory framework before committing to a long-let strategy.
| Line item | Short-let scenario | Long-let scenario |
|---|---|---|
| Gross annual income | €16,800 | €11,400 |
| Management fees (18% / 10%) | -€3,024 | -€1,140 |
| Community fees | -€1,800 | -€1,800 |
| IBI property tax | -€800 | -€800 |
| Insurance | -€400 | -€400 |
| Maintenance/repairs | -€1,000 | -€600 |
| Non-resident income tax (24%) | -€2,346 | -€1,598 |
| Net annual income | €7,430 | €5,062 |
| Net yield | 2.2% | 1.5% |
Based on total acquisition cost of €336,563 (purchase + taxes + fees). These are projections, not guarantees.
The net yield figures look lower than the headline gross numbers you see on other websites. That's because we include every real cost. Most competitor sites quote gross yield and leave you to discover the deductions later.
BlancaReal has been on the Costa del Sol since 1969. We know which streets rent well, which developments attract the best tenants, and where the yield traps are.
Book a consultation to discuss your buy-to-let objectives. We'll model the yield for specific properties, explain the cost structure in detail, and help you understand whether short-let or long-let better fits your situation.
Why local customers trust BlancaReal
Questions answered
After all costs (management, taxes, community fees, maintenance), expect net yields of 2% to 4% depending on whether you choose short-let or long-let. Gross yields of 4% to 7% are commonly quoted but don't reflect what you actually keep.
Yes. Holiday rentals in Andalucía require a VFT licence under Decreto 28/2016. Note that Manilva has suspended new VFT licences for three years. Check eligibility before buying if short-let income is your strategy.
Short-let management typically costs 15% to 20% of rental income, covering guest communication, check-in, cleaning coordination, and maintenance. Long-let management is cheaper at 8% to 12%.
It's possible but challenging. Spanish regulations require a local fiscal representative for non-residents, and guests expect responsive management. Most international investors use professional management.
Non-EU residents pay 24% flat rate on gross rental income (no deductions). EU residents pay 19% on net income (after deductible expenses). You file quarterly via Modelo 210.
Short-let produces higher gross income but more costs and management effort. Long-let is more predictable with lower costs. The best choice depends on your involvement preference and whether your property can obtain a VFT licence.
Well-managed properties in good locations achieve 70% to 85% annual occupancy, with peak rates in June to September and solid shoulder season demand in spring and autumn.
IBI (Impuesto sobre Bienes Inmuebles) for a two bedroom apartment in Manilva typically ranges from €500 to €1,200 per year, depending on the cadastral value of the property.
Community fees for modern developments with pool, gym, and communal areas typically range from €100 to €200 per month. The exact amount is set by the community of owners.
We can introduce you to trusted local property management companies who handle tenant sourcing, contracts, and ongoing management. BlancaReal focuses on the purchase side; management is handled by specialist partners.
Next step
We can walk you through realistic rental yields, management options, and the purchase process on the western Costa del Sol.