Investing in Second Homes in Benidorm and Calpe

Second homes on the Costa Blanca, especially in popular towns like Benidorm and Calpe, have experienced a boom in recent years. These cities are not only attractive for their natural beauty and climate but also for their excellent profitability in the vacation rental real estate market. If you are thinking of investing in a second home in this area, here is everything you need to know to make the best decision.

1. Why Invest in Benidorm and Calpe?

Both Benidorm and Calpe are world-renowned tourist destinations. They attract millions of visitors each year, creating high demand for vacation rentals and, therefore, an excellent investment opportunity for those looking for a second home.

• Benidorm: Famous for its vibrant nightlife, skyscrapers, and endless beaches, Benidorm offers a unique mix of modernity and coastal charm. The city has a well-developed tourist infrastructure, ensuring high occupancy in vacation rental properties. Additionally, the sea views and access to all imaginable amenities make Benidorm an ideal place for those looking to combine pleasure and profitability. Here's a selection of properties for sale in Benidorm.

• Calpe: On the other hand, Calpe is known for its iconic Peñón de Ifach, white sandy beaches, and more tranquil atmosphere. While also a popular tourist destination, Calpe offers a more relaxed vibe than Benidorm, making it an attractive option for families and those seeking a peaceful retreat. Properties in Calpe are appealing to tourists looking for extended stays and more intimate experiences. Discover our villas for sale in Calpe.

2. Property Rental Profitability

One of the main reasons to invest in a second home in Benidorm or Calpe is the potential to earn passive income through vacation rentals. The demand for rentals in both cities is high throughout the year, especially during the peak summer season.

• High occupancy rates: Properties in these areas can remain occupied for most of the year thanks to the steady influx of international tourists, including British, German, French, and Dutch visitors.

• Profitability: Depending on the exact location and characteristics of the property, investors can expect an annual gross return of 5-7% or even more for beachfront properties or those in high-demand areas.

• Flexibility: Besides the rental income, a second home offers you the flexibility to enjoy your property during your own vacations while still generating income for the rest of the year.

3. What to Look for in a Second Home in Benidorm or Calpe?

When buying a second home on the Costa Blanca, there are key factors you should consider to ensure your investment is profitable and well-valued in the future.

• Location: The most desired properties are close to the sea or offer spectacular views. In Benidorm, high-rise apartments overlooking the Levante or Poniente beach are highly valued. In Calpe, look for properties near the Peñón de Ifach or within walking distance of popular beaches like La Fossa beach.

• Amenities: Tourists value properties that offer comfort and luxury services, such as private pools, access to gyms, panoramic terraces, and proximity to restaurants and shops.

• Tourist rental license: It is important to ensure that the property has the appropriate rental license, especially if you plan to rent it out short-term. Tourist rental regulations can vary, so it's essential to comply with all legal requirements to avoid fines and maximize profitability.

4. Legal and Financial Considerations

Before making a purchase, it is essential to understand the legal and financial aspects of acquiring a second home in Spain.

• Taxes: Owners of second homes in Spain are subject to certain taxes, such as IBI (Property Tax) and IRNR (Non-Resident Income Tax) if you are not a tax resident in the country. It is crucial to consult with a tax advisor to understand your obligations.

• Financing: Many banks in Spain offer mortgages for non-residents, making it easier to buy a property. However, it is important to compare interest rates and terms to ensure you get the best deal.

• Insurance and maintenance: Make sure to take out adequate insurance for the property that covers both the building and its contents. Also, consider maintenance costs, such as cleaning, repairs, and rental management, especially if you do not live near the property.

5. Future Prospects for Investments in Benidorm and Calpe

The real estate market in Benidorm and Calpe remains strong, driven by high tourist demand and the appeal of the Costa Blanca as a luxury destination. As more international tourists seek quality vacation rentals instead of hotels, well-located and well-managed properties will continue to increase in value and profitability.

• Benidorm: The city's constant evolution, with new investments in infrastructure and luxury services, ensures it remains an attractive destination for tourists from around the world. Additionally, the iconic skyscrapers and breathtaking views make properties here continually in demand from international buyers.

• Calpe: With its more relaxed lifestyle and focus on quality tourism, Calpe continues to attract buyers looking for a quieter destination but still full of investment opportunities. The natural beauty of the area, combined with a growing real estate market, makes Calpe an excellent long-term option.

Conclusion

Investing in a second home in Benidorm or Calpe is a smart decision for those looking not only for a place to escape during the holidays but also for a profitable long-term source of income. With high demand for vacation rentals, well-located properties, and a growing market, these two cities offer unique opportunities for investors worldwide.