Malaga holiday rental profitability: real numbers for 2026

A well-run holiday rental in Malaga city can gross around €30,000–40,000 a year, but after commissions, cleaning, utilities and tax the net usually ends up at a little over half that. According to AirDNA (data to September 2026), active listings in Malaga have an average occupancy of 74% and an average daily rate of about $161, roughly €135–140. Real profitability depends above all on the neighbourhood, the size of the property, how much of the work you take on yourself and whether it has a valid tourist licence.

At Nordik we've been managing holiday rentals in Malaga and on the Costa del Sol since 2019. Here's how we run the numbers with an owner before we start, with no promises: just public data and real costs.

Typical gross income from a Malaga holiday rental

Income depends on two variables: the average daily rate (ADR) and occupancy. These are the most recent public figures we work with:

Two important caveats. First, these are averages: an interior studio in a residential area won't perform like a three-bedroom apartment in La Malagueta. Second, the drop in listings is down to regulation (we explain it in Malaga holiday rental regulations): there's less supply, which supports occupancy for the properties still operating legally.

On the Costa del Sol the pattern is more seasonal: summer is very strong and winter weaker than in the city, where city breaks, conferences and remote workers spread demand more evenly across the year.

Holiday rental running costs: what the listings don't show

• Platform commissions: on Airbnb, the host-only fee that applies to hosts using management software is 15.5%; on Booking.com commission is usually around 15% or more depending on the programme. Budget 15–18% of whatever comes in through the platforms.
• Cleaning and laundry: every checkout means a clean, fresh bed linen and towels, and laundry. Part of it is passed on to the guest as a cleaning fee, but it's a real operating cost.
• Consumables and replacements: toilet paper, shower gel, coffee, broken kitchenware, worn-out sheets.
• Utilities: electricity, water and internet are on you all year; air conditioning in summer sends the bill soaring.
• IBI (council tax) and community fees: as with any property. Since the April 2025 reform of Spain's Horizontal Property Law, the owners' community can raise the fees on holiday rentals by up to 20% with the legal majority.
• Insurance: you'll want a policy that explicitly covers tourist use and third-party liability towards guests.
• Maintenance: with high turnover, everything wears out faster: taps, mattresses, appliances.
• Software and compliance: channel manager, smart lock, guest reporting to SES.HOSPEDAJES.
• Income tax (IRPF): if you only rent out the property (without hotel-type services), the income is taxed as income from real estate capital. You can deduct expenses in proportion to the days rented and depreciate around 3% of the building value, but holiday lets don't get the reduction available for long-term residential lets. If you're not tax resident in Spain, non-resident income tax (IRNR) applies with different rules. Check your case with a tax adviser.

Worked example: 2-bedroom apartment in Malaga city

An illustrative example with round, prudent assumptions, not a forecast: a licensed two-bedroom apartment, average rate of €140 and 70% occupancy (255 nights), with an average stay of three nights.

The long-term rent uses the enalquiler.com average for 60–90 m² flats in Malaga city (September 2026). The figures in the manager column are a scenario assuming better pricing and occupancy from professional management, not a guaranteed result.

What the example tells us

1. A holiday let generates more net income than a long-term let, but with more variability, more wear and tear, a heavier relative tax burden and greater regulatory risk.
2. Self-managing maximises net income on paper, as long as you have the time, are in Malaga to deal with problems and don't put a value on your hours.
3. A full-service manager changes the net in two ways: it takes its fee, but can offset part of it through better dynamic pricing, higher occupancy, better reviews and fewer nights lost to incidents. If it doesn't, the net falls, which is why you should ask for real data from similar properties.

None of the three options is "the right one" for everyone. It depends on your goals, your time and your appetite for risk, and it's worth checking with your tax or financial adviser.

Seasonality: how the year breaks down in Malaga

The annual average hides very different months. As a rough market guide:

• High season (July, August, Easter and the Malaga Fair): very high occupancy and the highest rates of the year. This is where much of the margin is made.
• Mid season (May, June, September and October): a good balance of price and occupancy; in Malaga city, conferences, cruise calls and city breaks keep demand up.
• Low season (November to February, except Christmas): lower prices and gaps between bookings. This is when multi-week stays from remote workers make the difference.

A common mistake is calculating returns using August prices. Always run the numbers with a prudent annual average rate and keep a cushion for slow months, breakdowns and refurbishments.

What drives holiday rental returns most in Malaga

• Licence and location: since August 2025, new tourist rental properties have been suspended across the whole municipality of Malaga, so a property with a valid licence today has an operating value that one without simply can't reach.
• Neighbourhood: the Centre, La Malagueta and Pedregalejo attract demand all year round; areas further out rely more on summer.
• Size and layout: two bedrooms and two bathrooms is usually the sweet spot for families and groups.
• Kit for longer stays: a desk, a good kitchen and a washing machine attract guests who stay for weeks, which means fewer turnovers and cleans.
• Self check-in: a smart lock allows arrivals at any hour with no staffing cost.
• Reviews and response: your average rating affects your ranking on the platforms and the price you can charge.

How Nordik calculates your property's returns

We manage around 53 properties in Malaga, Torremolinos, Benalmádena and the Axarquía: from Nusfjord, a flat for six in La Malagueta, or Reikiavik, in the heart of the centre, to Kolvereid in Pedregalejo, Hanko on Playa Virginia or Tønsberg in Torrox Costa. With that base we compare your property with similar ones on rate, occupancy and seasonality, and give you a prudent scenario with real costs, not just the gross figure.

If you're weighing up whether a management company or doing it yourself works out better, read holiday rental management company or self-managing.

Get your free returns estimate

Tell us where your property is, how many bedrooms it has and whether it's licensed, and we'll send you a no-obligation returns estimate with the numbers for your case. Request your free returns estimate.

Updated: October 2026 · Nordik team