Vacation rentals in Cumbre del Sol can be attractive. The development attracts investors from all over the world due to its unique characteristics.
From the beauty of the location to the connections with key cities in the Valencian Community, there are many reasons to buy. However, is this the best time? Get ready to find out.
Is it profitable to invest in holiday rentals in Cumbre del Sol?
This is one of the first questions you need to resolve before making a purchase. Any market is characterized by being subject to demand and supply, as well as being volatile by nature. Therefore, it is advisable that you understand these factors.
Tourist demand in the area
The tourism sector is one of the most powerful in the Spanish and Valencian economies. Its weight is significant and it has already recovered from the effects of the pandemic. In 2023, hotel and rental occupancy in the Costa Blanca area reached 72.9%, a figure that improves on the 2019 data. The most important tourist destinations continue to be British, followed by Belgian and Norwegian. And demand is expected to continue to grow in the near future.
Expected profitability and high season
The profitability of holiday rentals that you can expect is high given the demand in the area where Cumbre del Sol is located. The greatest influx of tourists occurs in summer, especially in August. This is the month with the highest number of visits and occupancy rates of 91%.
Legal aspects and regulations in holiday rentals
Another important point when investing in housing on the Costa Blanca is the legal and regulatory aspects. In recent years, there have been important changes due to the difficult situation that Spain is going through in terms of real estate supply. However, this should not be understood as an insurmountable obstacle, but rather as other circumstances that affect investment.
Licenses required for renting
The essential license that you must obtain is the tourist license, since it is the one that enables you to carry out such economic activity on your property. Without it you will not be able to rent your home legally. In addition, you must apply for it in the autonomous community where the property is located, in this case the Valencian Community.
In addition to the above, the current Government is working on the creation of a single registry of temporary and holiday rentals. Its aim is to put an end to fraud in this type of leasing and, once it comes into force, it will have effects throughout Spain. It is worth keeping an eye on any new developments that may occur with this regulation.
Taxes and owner obligations
These are the ones you should keep in mind:
- IRPF. The income you obtain is taxed as income from economic activity and will be included in your tax base.
- VAT. Holiday rentals are exempt from this tax as long as you do not offer additional services. In this case, they will be considered to be of a hospitality nature and will be taxed at 10%:
- Tax on economic activities (IAE). It is only paid when the income generated by the economic activity exceeds one million euros.
Keys to managing a tourist rental property
After learning about the rental regulations in Cumbre del Sol, you should know how to manage your property effectively. This way, you will have no trouble maximizing your profits by offering a high-quality, high-value service to your tenant.
Find Your Home in Cumbre del Sol!
Are you looking to buy or sell a property in the exclusive Cumbre del Sol residential area? At Cumbre del Sol Pre-Owned, we offer over 30 years of experience in the real estate market to guide you every step of the way.
How to choose the best property to rent
To choose the best one, the first thing is to study the area in depth, in this case Cumbre del Sol. Try to choose a home in an attractive location that fits your investment budget. Then, check in detail the condition of the building, its year of construction and whether it has been renovated to adapt to current requirements.
Housing management and maintenance
You can manage your home yourself or leave it to specialists. Whatever the case, try to be friendly and attentive to the tenant so that they receive the best possible treatment. As for maintenance, it is advisable to clean the house and check its facilities periodically. In this way, you will increase the profitability of vacation rentals.
With a tourist rental in Cumbre del Sol, you can make a good investment. There is demand in the area and numerous homes to buy. At Cumbre del Sol Pre Owned we know the state of the tourist rental house market in Spain and we can help you with whatever you need. Contact us!
