Thinking about buying a property on the Costa del Sol to generate income from holiday rentals? It’s one of the smartest investment decisions you can make in this market today — but also one of the most poorly executed when done without the right information.

In this article, I’ll walk you through exactly what to evaluate before you buy, the most common mistakes buyers make, and why a transferable tourist licence can be the difference between an asset that works for you and one that sits idle.

Why the Costa del Sol remains a strong holiday rental market

Tourism in Andalusia shows no signs of slowing down. Málaga has posted consecutive years of record overnight stays, and Benalmádena in particular combines two factors investors look for: direct access to the sea and the service infrastructure to let properties year-round, not just in summer.

The visitor profile has also shifted. There are now more families looking for longer stays, more digital nomads who need connectivity and space, and more European couples blending work and leisure. That means longer seasons and greater willingness to pay higher rates for well-equipped properties.

The result: in prime coastal locations, a well-managed property can generate between 5% and 8% gross annual yield — figures that remain hard to find in comparable assets.

The costliest mistake: buying without checking the tourist licence

This is where many buyers make the mistake that costs them the most — and not in minor terms.

In Andalusia, to legally let a property to tourists, you need a Vivienda con Fines Turísticos (VFT) — a Tourist Use Property licence registered with the Junta de Andalucía. Without this registration, you cannot operate on Airbnb, Booking, or any regulated platform, and the fines for doing so reach €150,000.

The problem: since 2021, many Andalusian local councils have tightened the conditions for obtaining new licences. In certain areas, they simply aren’t granted at all. This means buying a property with the intention of letting it to holidaymakers, without first checking its legal status, can leave you with an asset you’ll never be able to let legally as a tourist property.

The smartest move in this context: buy a property that already holds a valid, transferable tourist licence.

What a “transferable” licence means

The tourist licence in Andalusia isn’t tied to the owner — it’s tied to the property. This has a direct and important implication: when you buy a property that already holds an active VFT, you can continue operating under that licence from day one, without waiting on paperwork or depending on the council granting new approvals.

For the transfer to go through correctly, the property must continue to meet the required technical standards (furnishings, equipment, fittings, public liability insurance), and the new owner must notify the change of ownership to the Junta de Andalucía. It’s an administrative procedure — not a fresh application from scratch.

In markets where licences are scarce, this difference carries real economic value. A property with a transferable tourist licence can start generating income within weeks. One without a licence can take months — or never get one at all.

What to assess before buying for holiday lets

Beyond the licence, five variables determine whether a property will actually perform:

Location and access. Tourists look for walking distance to the sea, supermarkets and transport. A property a ten-minute drive from the water performs considerably worse than one five minutes on foot.

Size and layout. Two and three-bedroom properties offer the best ratio between purchase price and rental income. Studios compete with hotels; four-bedroom penthouses see lower occupancy but a higher nightly rate.

Community rules. Some buildings and developments have community bylaws that prohibit or restrict holiday letting, regardless of what the Junta’s licence says. Always check the bylaws before signing.

Occupancy history. If the property has already operated as a holiday let, ask for the real occupancy figures. Platforms like AirDNA let you cross-check that data against the market. The numbers need to add up before you make an offer, not after.

Running costs. Booking management, turnover cleaning, maintenance, insurance, community fees and utilities. A property generating €30,000 gross a year can leave very different margins depending on how the operation is structured.

The concrete opportunity: four properties with transferable tourist licences

If you’re looking for a direct entry point into the Costa del Sol holiday rental market without the risks of starting from zero, we currently have four properties for sale that hold an active, transferable tourist licence.

These are properties you can buy today and have operating legally on the holiday market within weeks — no administrative uncertainty, no waiting on approvals, no exposure to future regulatory changes.

If you’d like details on each one — location, capacity, rental track record and price — get in touch directly. We’ll go through them together and see which one fits what you’re looking for.