Long-term property rentals in Spain in 2025

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Go Spain

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Do you dream of purchasing property in sunny Spain that will not only be your second home but also a source of stable income? Long-term rental is a safe and profitable investment strategy that allows you to benefit from the Spanish real estate market with minimal time commitment. The Go Spain real estate agency offers comprehensive support throughout this process, from purchasing the ideal property to professional rental management.
Long-term rental means making an apartment available for at least 6 months, although according to 2025 regulations, lease agreements can cover a period of 5 years for individuals and 7 years for legal entities. This business model guarantees peace of mind and predictable, stable passive income – exactly what most investors are looking for.

The man holds the keys to hand over to the next tenant.

Did you know that…? The constant interest from residents of Northern Europe – Norwegians, Danes, and Swedes – who eagerly escape the winter to the warm climate by the Mediterranean Sea, ensures a steady flow of potential tenants. This means minimal vacancy periods for you and maximized return on investment.

Long-term Rental Rules

Spanish rental law has been designed to protect the interests of both landlords and tenants, making the market stable and predictable. Here are the most important rules that ensure the security of your investment:

Key advantages of long-term rental in Spain:

  1. No need for a tourist license – you save time and money compared to short-term rentals
  2. Long lease duration ensures stable income without frequent tenant changes
  3. The tenant can terminate the contract after 6 months (with 30 days’ notice), but must pay a penalty for early termination
  4. Rent is payable in advance, which guarantees financial liquidity and regular income
  5. As the owner, you have the right to terminate the contract with 4 months’ notice if you need the property
  6. You can require a deposit of at least one month’s rent, which provides security for your investment
  7. Automatic contract renewal ensures rental continuity and income stability

Regional Differences Worth Leveraging for Investment

Each of Spain’s popular tourist regions offers unique opportunities for investors:

  • Costa Blanca (Alicante) – an ideal region for beginner investors with an excellent ratio of purchase price to potential profits. Popular among retirees and remote workers, guaranteeing stable demand in the rental market.
  • Costa del Sol (Marbella, Malaga) – a prestigious location with the potential for highest returns and growing property values. Thanks to high demand, owners can negotiate more favorable contract terms.
  • Costa Calida (Murcia) – an emerging market with attractive purchase prices and growing interest among tenants looking for quieter locations. An excellent option for investors with limited budgets.
And what about taxes? It’s simple – EU residents pay 19% income tax on rental income, while non-EU citizens pay 24%. Thanks to Go Spain’s services, all tax formalities will be handled efficiently and in compliance with regulations.

Tenant Rights

Spanish regulations ensure a balance between tenant rights and landlord interests. This harmony creates a stable rental market that minimizes the risk of conflicts and legal disputes, protecting your investment.

Benefits of Clearly Defined Tenant Rights

  • Rent predictability – increases possible only once a year and limited to the CPI index (2.8% in 2025), allowing for long-term income planning
  • Tenant privacy protection – eliminates the need for frequent inspections, reducing your time commitment
  • Clear division of responsibilities – the tenant takes care of day-to-day maintenance, while the owner is responsible for major repairs
  • Organized deposit return procedures – limit potential conflicts at the end of the lease
  • Regulation of potential subletting – requirement for your consent to sublet protects against unauthorized use of the property

Did you know that…? Stable legal regulations attract high-quality tenants who are looking for long-term rental relationships. This means fewer problems with turnover, lower costs of finding new tenants, and better care for your property.

Attractive Rental Rates

The earning potential of investment in long-term rentals is significant, especially in the most sought-after regions. Average monthly rental income allows for a return on investment of 4-7% annually, and that’s just direct income, not including property value appreciation. Here are the current monthly rates for 2025:

Region 1-bedroom Apartment (EUR/month) 3-bedroom Apartment (EUR/month)
Costa Blanca 700-1,000 (center)
500-700 (outskirts)
1,200-1,800 (center)
800-1,300 (outskirts)
Costa del Sol 900-1,500 (center)
600-1,000 (outskirts)
2,000-3,500 (center)
1,500-2,500 (outskirts)
Costa Calida 500-800 (center)
400-600 (outskirts)
1,000-1,600 (center)
800-1,200 (outskirts)

What Affects Your Investment’s Earning Potential?

When choosing a property for long-term rental, it’s worth considering factors that maximize the rate of return:

  • Location – properties in Marbella (Costa del Sol) generate higher income but also cost more to purchase. Costa Calida offers lower purchase prices while maintaining attractive rental rates.
  • Additional amenities – apartments with a pool or sea view can be rented for up to 50% more, significantly improving profitability.
  • Quality of finishes – modern, functional decor attracts premium tenants who are willing to pay more and stay longer.
  • Proximity to infrastructure – properties located near shops, restaurants, and public transport enjoy greater interest.

Did you know that…? Property values in Spain’s most popular regions increase by an average of 3-5% annually. This means that in addition to regular rental income, you also benefit from the appreciation of capital invested in the property.

Protection of Tenant Rights

Protection of tenant rights in Spain is a key element that ensures stability and security for tenants. Tenants have the right to long-term rental with a guarantee of unchanged contract conditions for the agreed period. They are also protected against unjustified rent increases and unauthorized access by the landlord to the rented property. In case of a dispute or conflict with the landlord, tenants have the right to court intervention, which can block unjustified eviction. Furthermore, there are regulations governing the landlord’s obligations regarding maintenance and repairs, ensuring adequate housing conditions.

Purchasing Property for Long-term Rental

If you’re looking for property in Spain, use the help of our real estate agency. We will help you choose and purchase a house, apartment, or flat. We will take care of all legal formalities during the purchase. We will advise you on which location to buy property in to achieve the highest return on investment.

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