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Holiday let yield calculator Short-term rental: nights, occupancy, platform and tax

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Result: Positive cash flow and ROI ≥ 5%

3-bed flat · Valencia (holiday let)

Positive cash flow and ROI ≥ 5%
Valencia (Comunitat Valenciana) · Provincial capital€140,000 · €2,000/m²70 m² · 3 bedHoliday letIncome of €2,166 /month on average · €30.9/m²

With these figures, the rent covers the mortgage and costs, and the money you put in returns 5% or more a year.

Net monthly cash flow. What you keep each month after paying costs, the mortgage and tax. If it's negative, you top it up from your own pocket.
€444
€5,331 a year, after tax
Gross yield. Annual rent divided by the purchase price, without costs or taxes. Good for quick comparisons, not for deciding.
18.57%
Annual rent / price
Return on equity invested. Cash-on-cash: year-1 net cash flow divided by all the money that comes out of your pocket (deposit, taxes, costs, refurbishment and furniture).
9.4%
€56,850 put in
IRR over 10 years. IRR (internal rate of return): the equivalent annual return of all your cash flows, including the final sale net of costs, taxes and debt.
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Holiday lets

How to work out the return on a holiday let

A holiday let can bring in more than twice as much as letting all year, but it also costs much more: platform fees, cleaning, utilities, the licence and more tax. The sums are done by the night: how many are let, at what price and what each stay costs.

Reviewed on 9 October 2026

The same flat as a holiday, seasonal and long-term let

Holiday let: €130 a night for 4 months of high season (85% occupied) and €80 the rest of the year (50%), average stays of 4 nights and a 15% platform fee. Seasonal: €1,400 a month. Long-term: €1,000 a month. All with the example mortgage.

Type of letIncome for the yearCosts for the yearIncome tax for the yearMonthly cash flowIRR over 10 yearsBreak-even occupancy
Long-term let€11,172€2,287€308€16911.5%74%
Seasonal let€14,280€5,509€581€13610.8%70%
Holiday let (run yourself)€25,994€11,944€2,165€44416.1%36%
Holiday let with a manager (20%)€25,994€17,143€605€14110.8%51%

The formula

  • Income = nights let × price per night + any cleaning fee you charge. The nights come from the high and low season months and the occupancy in each.
  • Costs = platform fee + cleaning and laundry for each stay + consumables + utilities and internet + licence and fees + property tax, service charges, insurance and maintenance. If a manager runs it, their fee too.
  • Return: from there you get the same figures as for a long-term let (gross, net, on the cash you put in and cash flow). Also check the break-even occupancy: the share of the year it must be let so you are not topping it up.

Holiday or long-term let: what the figure does not show

A holiday let earns more if you run it yourself, but it is work: check-ins, cleaning, messages and reviews. It also depends on the season, the platforms and rules that change every year. A long-term let earns less, but with less work, lower costs and an income tax reduction.

With the example mortgage, the holiday let covers its costs and the payment if it is let for more than 36% of the year; the long-term let needs 74%, but a long-term tenant usually pays all twelve months.

Rules to check before you buy

  • Licence or declaration from your region and your town hall. Many cities grant no new licences in the centre or in whole neighbourhoods: check before you buy, not after.
  • Permission from the owners' association: since 3 April 2025, starting a holiday let in a flat requires approval at the owners' meeting by three fifths of the owners, who must also hold three fifths of the shares. It does not affect lets already running before then.
  • Single Rental Register: since 1 July 2025 you need its number to advertise the flat on platforms such as Airbnb or Booking. It is refused if the licence is missing or the owners' association forbids it.
  • Tourist tax: some regions and cities charge guests a tax per night, which you must collect and declare.

Tax on holiday lets

What you earn is taxed under income tax like any rental, but without the 50% reduction for residential lets: that is why it pays more tax than a long-term let (€2,165 a year in the example, against €308). If you provide hotel-type services (cleaning during the stay, changing sheets, breakfast…), VAT also applies and it becomes a business activity: check with an adviser.

Frequently asked questions

Is a holiday let profitable in 2026?

It can be if the area has demand almost all year and you can get the licence. In the Valencia example it leaves €444 a month against €169 as a long-term let, but with a manager it drops to €141. Do the sums with your own nights and prices, and check your city's rules before buying.

What occupancy does a holiday let need to be profitable?

Enough to cover all the costs and the mortgage payment. In the example, with an 80% mortgage, 36% of the year. The calculator gives you that break-even occupancy with your figures.

How much tax does a holiday let pay?

Income tax on what is left after costs, without the 50% reduction for residential lets. If you provide hotel-type services, VAT too. And in some regions and cities, the tourist tax.

Do I need the owners' association's permission for a holiday let?

Since 3 April 2025, yes, for flats starting out as holiday lets: the owners' meeting must approve it by three fifths of the owners and of the shares. Lets already running before then do not need it.

What is the Single Rental Register?

A national register of short-term lets in Spain: holiday, seasonal and room lets. Since 1 July 2025, you cannot advertise the flat on the platforms without its number.

Cash flow/mo€444
ROI on equity9.4%
Gross yield18.57%