Property investment in Alicante, Spain
2026 Market Data & Investment Analysis
Gross Yield
6.06%
Annual rent / price
Median Home Price
€195,000
As of 2026-Q1
Median Monthly Rent
€984
Per month
Population
340,000
+1.3% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Idealista / INE / Colegio de Registradores, 2026-Q1.
Calculate your rental yield in Alicante
Pre-filled with Alicante's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
6.06%
Net Rental Yield
3.52%
Cap Rate
3.52%
Monthly Cash Flow
€572.30
Annual Cash Flow
€6,867.60
Alicante rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Alicante benefits from year-round sunshine and a large expat community alongside domestic renters, delivering gross yields of 6–7%. Entry prices below €1,600/m² make it one of the more accessible coastal markets in Spain.
Alicante provides solid rental yields of 6.06%, in line with healthy investment market benchmarks.
Strong population growth of 1.3% per year suggests increasing rental demand and a tightening supply-demand balance over time.
The vacancy rate of 4.5% is healthy, indicating strong rental demand and limited downtime between tenants.
What type of investment market is Alicante?
Alicante offers the best of both worlds — above-average rental yields combined with strong population growth. These market conditions support both current cash flow and long-term appreciation potential.
✓ Strengths
- •Gross rental yield of 6.06% is above the national average
- •Population growth of 1.3% per year drives rental demand
- •Dual potential for rental income and price appreciation
! Risks
- •Investor competition can compress yields as prices rise
- •Rapid growth may put upward pressure on purchase prices
Key Metrics
How does Alicante compare to nearby cities?
Alicante vs Murcia: 1.4 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Murcia, Murcia | €103,000 | €640 | 7.47% | +1.1% |
| Elche, Valencia | €100,000 | €600 | 7.2% | +0.8% |
| Benidorm, Valencia | €160,000 | €920 | 6.9% | +1.6% |
| Torrevieja, Valencia | €128,000 | €760 | 7.13% | +1.8% |
| Cartagena, Murcia | €112,000 | €640 | 6.86% | +0.6% |
Common questions about investing in Alicante
Is rental investing profitable in Alicante?▾
What is the average rental yield in Alicante?▾
How does Alicante compare to Murcia for investors?▾
Tax and legal framework for property investors in Spain
ITP — transfer tax on second-hand properties
Resale (second-hand) properties are subject to Impuesto sobre Transmisiones Patrimoniales (ITP), a regional tax that varies by autonomous community. Rates range from 6% to 11% of the purchase price — Andalucía charges 7%, Catalonia 10%, and the Balearics up to 11% for higher-value properties. New-build properties are instead subject to IVA (VAT) at 10%, plus a stamp duty (Actos Jurídicos Documentados) of 0.5–2%. Budget a total of 10–15% in acquisition costs including notary, registry, and legal fees.
IRPF — rental income tax for residents and non-residents
EU/EEA non-residents pay a flat 19% tax on gross rental income, with expenses deductible in proportion to rental days. Non-EU non-residents pay 24% on gross income with no deductions. Spanish tax residents include rental income in their general IRPF tax base, taxed at progressive rates from 19% to 47%; however, a 60% deduction applies for long-term residential lets (reduced from 60% to 50% for new contracts from 2024 in zonas tensionadas).
IBI — annual property tax
Impuesto sobre Bienes Inmuebles (IBI) is levied annually by each municipality on the cadastral value of the property. Rates typically range from 0.4% to 1.1%. Cadastral values are usually well below market value, so the effective cost as a percentage of purchase price is often 0.1–0.3%. IBI is always paid by the property owner and cannot be passed to the tenant.
Ley de Vivienda 2023 — tensioned zone rules
Spain's 2023 Housing Law introduced zonas tensionadas (tensioned zones), allowing regional governments to cap rents in areas where housing costs exceed 30% of household income or rents have risen more than 3% above CPI. Madrid and Barcelona's Catalonia have both implemented restrictions. In tensioned zones, new rental contracts cannot exceed the previous contract rent (for large landlords) or the applicable rent index (for small landlords). Check whether the specific neighbourhood where you are buying has been designated a tensioned zone before signing a purchase contract.
Tourist rental licences
Short-term rentals (Airbnb, Booking.com, etc.) require a regional vivienda de uso turístico (VUT) licence. Many municipalities — including Barcelona, Madrid, Palma, and San Sebastián — have capped or frozen new licences. Verify licence availability for your specific building and street before purchasing for short-term rental purposes.
Key data sources
Price and rent data is sourced from Idealista market reports, INE (Instituto Nacional de Estadística) housing statistics, and the Colegio de Registradores property registry data. Population data from INE municipal register (padrón). Data reflects 2025–2026 transaction and rental market conditions.
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