How to buy a Costa del Sol apartment that pays for itself

How to buy a Costa del Sol apartment that pays for itself

When deciding to buy a home in Spain together, Tony and Danielle knew from the off that the property would need to pay its way.

The couple, who have been together for four years and have a daughter each, knew that having a holiday home that sat empty for many weeks of the year would not make sense. “We did not want a financial liability,” says Tony, a geophysicist from Wrexham.

Where is best to buy on the western Costa del Sol?

Focusing on the western Costa del Sol, between Estepona and Manilva – an area nicknamed the ‘new Golden Mile’ – the couple asked A Place in the Sun for help and appeared on the programme last month [February 2026].

Jasmine helped them in their search for a two-bedroom property with a budget of £230k.

“We like the area as it’s got 13 miles of beaches, is very cosmopolitan, and it’s very well positioned to reach Cadiz, Gibraltar and even day trips to Morocco,” says Tony. This area, which includes Duquesa, has really grown in popularity for its mix of great amenities and traditional Spanish towns.

How much does property cost west of Estepona?

The couple ended up buying a property in Casares Costa, west of Estepona and around 30% more affordable than Estepona. It cost £255k.

The property is on a complex, Casares Beach 2, with an impressive shared swimming pool and a padel court (Tony is a tennis fan).

Casares

What are urbanisation fees on the Costa del Sol?

Being on a complex means that the property is easier to manage, has security and facilities that are also very attractive to renters, but this comes at a cost.

“We were aware that the urbanisation fees were quite high – we pay €330 a month – but the grounds are beautiful, the maintenance is discussed on the residents’ WhatsApp group and there’s a good sense of community,” says Tony.

The couple had also checked before buying that the urbanisation permits holiday rentals – always get your lawyer to check this in Spain if rental income is a priority.

Tony says the purchase process was straightforward – it took less than two months – and they used power of attorney with My Lawyer in Spain. “It was a nice process to go through. They helped us set up a Spanish bank account too.”

How much can you earn from a Costa del Sol holiday rental?

After giving it a spruce-up, especially the terrace, they rent out their two-bed, two-bath property via rental agent Duquesa Estates at a fairly modest rate of around €60 per night in the winter and €135 in the summer. They have a storage area where they can pack away any personal or valuable pieces of furniture or items.

It’s gone well, but Tony is upfront about the deductions. “We need to budget for cleaning fees – €80 to €100 per changeover. This can really eat into your income, which is why many people have a minimum stay, such as three nights.”

Income tax for non-EU owners is 24% with no deductions, he says. Agent commission on a booking is typically 20%.

The property practically washes its face – they only end up paying around €1,000 a year when all the deductions are made. Even without the utility bills on top, the community fees add up to €4,000 per year.

The couple could probably rent it out for more weeks per year – or put up the rates – but they also want to use it themselves four or five times a year and let their families enjoy it too. It’s a long-term investment too – property prices in the area are steadily increasing each year.

“In October our blended families will get together at the property,” says Danielle, whose daughter is in California. “Plus, Jasmine [who now lives in nearby Estepona] came to Tony’s 50th birthday party. We’ve already had so many wonderful times out there.”

Thinking of buying on the Costa del Sol?

Whether you’re looking for a holiday home, rental investment or future retirement base, the western Costa del Sol remains one of Spain’s strongest-performing areas.

🔍 Search for properties on the Costa del Sol
📘 Download our free Spain Buying Guide
📺 Apply to appear on A Place in the Sun

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