Property values in Benahavís are experiencing a consistent upward trend. As reported by Indomio España, the average price for residential properties in Benahavís reached €4,918/m² in July 2024, representing a significant 21.52% increase from July 2023, when the average price was €4,047/m².
The lowest asking price over the past two years was recorded in September 2022, at €3,971/m².
Spain remains a prime destination for global holidaymakers, with its coastal regions particularly favoured. The country's warm climate, picturesque beaches, and stunning landscapes make it a desirable location for real estate investment, especially in rental properties. In recent years, many investors have recognised the potential for strong returns by purchasing rental properties in high-demand coastal areas, where rental demand is consistently robust.
With rental yields in Spain ranking among the highest in Europe, it's no wonder that an increasing number of investors are drawn to this market. According to data from Idealista, rental yields in some coastal areas of Spain can reach up to 7% or even higher, making it an attractive option for those looking to secure a solid return on investment. This not only offers a great opportunity to diversify an investment portfolio but also provides a reliable source of passive income. Moreover, with property prices in Spain still relatively affordable compared to many other European countries, it's an accessible entry point for those looking to venture into property investment without a significant financial burden.
The rental market in Marbella
The demand for long-term rentals in Marbella is surging, with families from across Europe and beyond choosing to relocate to this vibrant region. Many opt to rent initially, with plans to purchase property in the future. Marbella's appeal lies in its top-tier international schools, the growing flexibility of remote work, and its luxurious lifestyle set against a backdrop of stunning natural beauty. These factors contribute to Marbella being home to some of the most expensive rental properties in Spain.
The rental market in Marbella is witnessing substantial growth, driven by a shortage of quality long-term properties. According to Idealista, the cost of renting a modern two-bedroom apartment in prime areas of Marbella has escalated significantly, rising from approximately €2,000 to €3,500 per month. This trend underscores the increasing desirability of Marbella as a destination for those seeking both lifestyle and investment opportunities.
The rental market in Benahavís
Benahavis tops the list for the most expensive rental properties in the country. Its breathtaking scenery, tranquil atmosphere, and high-end real estate make it a desirable location for those seeking a luxury living. As a result, the demand for quality long-term rental properties in Benahavis is strong and rental prices are among the highest in the country.
The average long-term rental rate for a property in Benahavis is €2,813 per month. However, this is just an average, and rental prices can vary greatly depending on the property's location, size, and level of luxury. Some property owners prefer short-term rentals, which provide higher rental returns in the summer and allow them to use their second homes during the rest of the year. The cost of short-term rent of a high-end three or four-bedroom villa apartment at Marbella Club Hills in the summer season is between €3,000 and 6,000 per month, but in the months from June to September, they get rented out for up to €2,000 per week.
To ensure the community's security and privacy, Marbella Club Hills has specific rental conditions in place. For detailed information and guidance, it's best to consult directly with our sales team, Anahí or Lina.
Tax considerations for rental properties
If you're planning to buy a property in Spain with the intention of renting it out, whether short-term or long-term, it's essential to consider the tax implications on rental income and ensure you declare your earnings, regardless of your residency status.
To help you navigate the tax landscape for real estate rentals in Spain, here are the three possible scenarios:
1. Resident Income Tax (IRPF)
If you reside in Spain for more than 183 days within a calendar year, you are considered a tax resident and subject to Personal Income Tax, known as IRPF. This tax applies to your total income, including salary, pensions, and rental income. Rental income must be declared on your annual IRPF tax return ("rendimiento de capital inmobiliario"). EU residents and citizens of the European Economic Area (EEA) are eligible for the same tax rates and deductions as Spanish citizens.
2. Non-Resident Income Tax for Rental Properties in Spain
1. EU/EEA Residents: IRNR
If you are a non-resident in Spain (residing in the country for less than 183 days during the calendar year) but live in another EU or EEA state, you are required to pay Spanish Income Tax for non-residents (IRNR) on any rental income from your property. The tax rate is 19% on the net yield, meaning you can deduct expenses proportional to the time your property was rented.
2. Non-EU/EEA Residents: IRNR
For non-residents living outside the EU or EEA, the IRNR tax rate is 24% on the gross rental income. Unfortunately, non-EU/EEA residents cannot apply for tax deductions and must pay the full 24% on the total earnings from renting out their property in Spain.
Investment opportunity in Benahavís
If you're considering investing in rental property, Benahavís offers a promising opportunity. The area is known for its breathtaking scenery, top-tier restaurants, and world-class golf courses, which attract both tourists and expats. With a shortage of quality long-term rental properties, there is a significant opportunity for investors to meet the high demand. Benahavís, with its reputation for luxury, is a highly desirable location for renters seeking upscale accommodations and amenities.
