If you are asking how profitable managing a holiday rental in Riviera del Sol really is, you are not browsing casually. You are assessing an investment decision.
That is the right mindset.
A well purchased two bedroom apartment in Riviera del Sol, bought between €230,000 and €270,000, can realistically gross between €22,000 and €30,000 per year when licensed correctly and positioned properly in the market. I have seen it work.
I have also seen buyers spend over €300,000 in the wrong development and struggle to clear 4 percent net because they ignored community rules or overpaid during negotiation.
Profit here is not automatic. It is structured at the point of purchase.
Riviera del Sol continues to attract foreign investors because of its position between Marbella and Fuengirola and its access to Málaga airport. That location keeps buyer demand consistent and supports steady rental interest.
In 2025, older two bedroom apartments without views may start around €210,000. Renovated properties with terraces and partial sea views typically begin closer to €250,000. Strong sea view apartments or premium developments can exceed €300,000.
Many investors assume that paying more guarantees higher rental income. That assumption is often wrong. Yield is driven by the relationship between purchase price and achievable net income. Paying too much at the start compresses your return for years.
Let us use a realistic example.
A properly presented two bedroom apartment may achieve around €1,200 per week during peak summer for approximately eight weeks. During shoulder season months such as May, June, September and October, rates may average €800 per week for around twelve weeks. Winter and longer stay bookings might produce six weeks at around €650 per week.
This scenario generates roughly €23,000 to €26,000 in gross annual income.
Now consider the costs. Cleaning and laundry often reach several thousand euros annually depending on occupancy. Platform commissions reduce headline income. Utilities, internet, community fees, local property tax, maintenance reserves and management fees all reduce the final figure. Spanish non resident rental tax must also be declared and paid.
After realistic expenses, net income frequently lands between €14,000 and €18,000 depending on structure. On a €250,000 purchase, this places net yield roughly between 5 and 6 percent when managed properly.
Those are grounded figures, not marketing projections.
Profitability starts with compliance.
In Andalucía, short term rental properties must be registered and issued with a tourist licence. The property must meet defined equipment and documentation standards and the licence number must be displayed in advertising.
However, the greater risk often lies within the community statutes. Some urbanisations in Riviera del Sol have voted to restrict short term rentals. Others allow them but impose operational limitations.
We recently advised a buyer to withdraw from a purchase because the community had begun discussions about limiting new licences. The property looked appealing and the price was reasonable. The regulatory risk made it unsuitable for a rental focused investor.
Licence eligibility and community policy must be confirmed before reservation. Not afterwards.
Two apartments in the same development can produce very different results.
Orientation affects natural light and comfort. Sea views command stronger demand. Walking distance to the beach influences booking frequency. Lift access, secure parking and the quality of communal pools all shape guest perception. Interior presentation and modernisation also directly affect nightly rates.
Owners who monitor competitor listings and adjust pricing according to season and demand patterns generally outperform those who set fixed rates based on personal expectations. Occupancy is dynamic. Income follows strategy.
Managing from abroad can appear straightforward at first.
In reality, guests expect immediate responses. Air conditioning failures in August require same day solutions. Late arrivals must be coordinated smoothly. Cleaning standards must remain consistent, especially during back to back bookings. Online reviews quickly influence future demand.
Professional local coordination often preserves income and protects review ratings. Even after management costs are deducted, structured oversight frequently results in stronger overall performance.
Rental income generated in Spain is taxable in Spain. Non resident owners must submit quarterly declarations and pay the relevant tax on declared profits. Certain expenses such as community fees, utilities, insurance and management costs may be deductible depending on eligibility.
Investors who focus only on gross figures often miscalculate true return. Clear understanding of net yield before purchase protects long term performance.
In current market conditions, Riviera del Sol can provide stable mid single digit net returns for disciplined buyers who purchase correctly and manage properly. Overpaying or ignoring compliance risks reduces profitability significantly.
Consider two investors.
Investor A purchases at €245,000 in a rental friendly community with confirmed licence eligibility. Investor B purchases at €315,000 in a development with uncertain community policy.
Both achieve similar gross income levels. Investor A achieves close to 6 percent net. Investor B drops closer to 4 percent due to higher capital outlay and added uncertainty.
The difference is not luck. It is purchase discipline and due diligence.
Sunny Coast Homes works daily with foreign investors targeting Riviera del Sol rental property.
That experience means understanding which communities actively support short term rental activity and which present regulatory or operational risk. It means assessing realistic rental positioning before emotion influences the decision. It means advising against purchases that may look attractive but would struggle financially.
Buyers are also connected with experienced legal and tax professionals to ensure licence registration and compliance are handled properly from the beginning.
Most importantly, viability is assessed before reservation. If a property is unlikely to perform at the level you expect, that is addressed early.
What net yield is realistic in Riviera del Sol?
For sensibly purchased two bedroom apartments in rental supportive communities, net yields often range between 4 and 7 percent depending on occupancy levels and cost structure. Purchase price remains the single most influential factor.
Can a community prevent holiday rentals?
Yes. Community statutes and legally approved resolutions can restrict or prohibit short term rental activity. This must be verified through official documentation during the due diligence process.
Is Riviera del Sol still attractive to investors?
Buyer demand remains steady due to location and accessibility. However, performance varies by development, property condition and pricing discipline. Not all properties deliver equal returns.
Is self management practical from another country?
It can be done, but it requires reliable local contacts and rapid response capability. Many foreign owners find that structured local management improves guest satisfaction and protects income stability.
Should I move quickly in competitive situations?
Speed should never replace due diligence. Licence eligibility, community policy and realistic net income projections must be confirmed before reserving.
If you are actively looking for a holiday rental investment in Riviera del Sol, the next step should not be browsing randomly.
The correct next step is reviewing properties that have confirmed licence viability, are located within rental supportive communities and are priced in line with realistic yield expectations.
Request a vetted shortlist of Riviera del Sol properties aligned with rental performance before committing. Profit in this market is achievable. It simply depends on buying correctly from the beginning.
