What Rental Yield Can You Really Get on the Costa Blanca?

Gross rental yields on residential property in the Alicante province are running at around 6.2 percent in early 2026, according to an Idealista study reported by El Espanol Alicante on 13 January 2026, a slight dip from the year before. That average hides big differences from one town to the next, and between property types and letting strategies. Here is the town-by-town breakdown to check before you buy to let.

What average rental yield can you expect in Alicante province?

The benchmark figure is that 6.2 percent gross residential yield for Alicante province in early 2026 (Idealista, via El Espanol Alicante, 13 January 2026). It is a gross figure: it does not deduct running costs, the annual property tax (IBI), void periods between tenants, or income tax. Your net return will be lower once those are factored in.

The same study also tracked other property segments for context: offices at 7.7 percent, retail units at 9.9 percent, and parking spaces at 4.9 percent. Those non-residential segments follow a different investment and management logic. If you are buying a home to let out, the 6.2 percent residential figure is the one that applies to you.

How much does property cost per square metre, by town?

Purchase price sets the denominator of your yield calculation, and the gap between towns is large. According to Tinsa's IMIE Local Markets report for the first quarter of 2026, prices range from 802 euros per square metre in Alcoy to 2,786 euros per square metre in Benidorm, a difference of more than three to one. The Alicante province average sits at 1,877 euros per square metre, up 18.3 percent year on year, a faster rise than the Spanish national average of 14.3 percent.

The pattern is clear: the most sought-after coastal towns, Benidorm above all, are both the most expensive and the fastest-rising, which squeezes yield at the point of purchase. Inland towns such as Elda and Alcoy are far cheaper, but rental demand there works differently. Before you commit to a budget, it helps to know your ongoing running costs too: see our guide to the cost of living on the Costa Blanca in 2026.

What rent can you charge on the Costa Blanca?

Rental levels reported by the regional press also vary by town, and these figures are market data rather than a single official statistic, so treat them as a guide. Expect around 12 euros per square metre per month in Alicante city, close to 16.3 euros per square metre per month in Torrevieja and Benidorm, and around 15.4 euros per square metre per month in Denia. Several coastal towns have seen double digit rent rises over the past year, driven by a shortage of supply and dual demand from tourists and permanent residents.

One detail worth noting: Alicante city has one of the highest purchase prices per square metre in this list (1,980 euros) but one of the lowest rents per square metre (around 12 euros a month), while Torrevieja combines a more moderate purchase price (1,859 euros) with a higher rent (around 16.3 euros a month). That gap is exactly why yield needs to be worked out town by town rather than at province level. Before you set a rent, it is worth checking what tenants are actually paying locally, which we cover in our guide to renting a flat on the Costa Blanca.

Torrevieja case study: how does yield change by property type?

For a sense of how yield breaks down by property type, local estate agents publish their own market estimates. These are agency estimates, sourced from the Inmo2000 property blog, not official statistics, but they illustrate a consistent pattern: the more expensive the property, the lower the percentage yield tends to be, even though the absolute rental income rises.

Those agency estimates put net yield in Torrevieja at around 5 to 7 percent for long-term lets, 6 to 8 percent for mid-term lets, and 7 to 10 percent for short-term or holiday lets in coastal areas.

The takeaway is straightforward: a small, well-located studio let short-term aims for the highest percentage yield, but comes with more day-to-day management and seasonal swings. A premium property earns a lower percentage but higher absolute income, with a different tenant profile and risk. Your overall budget matters here, and so does the cost of running the property, including tax on the rental income you declare: see our guide to declaring your income in Spain.

Does short-term letting pay more than long-term?

The agency estimates above show short-term letting delivering the highest theoretical yields (7 to 10 percent net in Torrevieja, according to Inmo2000), ahead of mid-term and then long-term lets. But that extra yield comes with a regulatory catch worth taking seriously: short-term tourist lets require a tourist licence, and the rules vary by municipality.

We are not giving specific legal figures here, because licensing depends on each town hall and changes over time. The safe approach is simple: check, town by town, whether tourist letting is permitted for your property and under what conditions, before you build your yield calculation around a short-term letting strategy. A property bought for short-term lets but restricted to long-term contracts is a very different investment.

Frequently asked questions about buy-to-let investment on the Costa Blanca

What is the average rental yield on the Costa Blanca in 2026?
Gross residential rental yield in Alicante province is running at around 6.2 percent in early 2026, according to Idealista (via El Espanol Alicante, 13 January 2026). That is a gross figure, before costs, IBI, void periods and tax.

Which town has the cheapest property?
Among the towns tracked, Alcoy is the cheapest at 802 euros per square metre, followed by Elda at 866 euros per square metre, against 2,786 euros per square metre in Benidorm, the most expensive (Tinsa, IMIE Local Markets, Q1 2026).

Does short-term letting pay more than long-term?
Agency estimates for Torrevieja (Inmo2000) put short-term lets at 7 to 10 percent net, against 5 to 7 percent for long-term lets. These are agency estimates, and short-term tourist letting depends on a licence that varies by municipality.

Do you need a licence to let short-term?
Short-term tourist letting is regulated through a tourist licence set by each individual town hall. Check the requirements with the relevant town hall before buying with that strategy in mind.

Sources: Tinsa, IMIE Local Markets report, first quarter 2026 (price per square metre and year-on-year change by town); Idealista study reported by El Espanol Alicante, 13 January 2026 (gross yields by asset type); Inmo2000 property blog (agency estimates of yield and property segments in Torrevieja); rental price data per square metre reported by the regional press (market order-of-magnitude figures, not a single official statistic).

Information verified in August 2026. The Daily Costa Blanca is an AI-assisted publication with human review.