Rental Investment in Guardamar del Segura: Why the Short-Term Rental Ban Is Actually an Advantage

Residential complex with swimming pool in Guardamar del Segura with pine forest backdrop

When an investor hears "short-term rental ban," the first reaction is usually caution. Why buy property where you cannot rent to tourists? But once you look at the actual numbers, it becomes clear: Guardamar del Segura offers one of the most sustainable rental income models on the entire Costa Blanca coastline.

Our Granfield Estate office is located in neighbouring La Mata — literally a five-minute drive from Guardamar. We handle property transactions in this town every week and have managed rental properties here for years. From our experience, landlords who rent apartments in Guardamar on medium and long-term contracts earn more predictable income than those chasing seasonal peaks in nearby Torrevieja.

In this article we break down how Guardamar's rental market works, why the short-term rental ban benefits both investors and residents, and what real yields look like in 2026.

What is happening with rentals in Guardamar del Segura

The municipality of Guardamar del Segura does not issue short-term tourist rental licences (alquiler turístico). This means property owners cannot legally rent apartments and houses on a nightly or weekly basis through Airbnb, Booking.com or similar platforms.

The decision was made at the municipal level and has been in effect for several years. Medium and long-term rentals are fully permitted and regulated under standard Spanish legislation (Ley de Arrendamientos Urbanos — LAU).

What types of rental are allowed in Guardamar?

Two types of rental contracts operate in Guardamar:

  • Medium-term rental (1–11 months) — a temporal contract, popular with Northern European "winter sun" residents who spend 3–6 months on the coast during the cold season. Flexible terms, deposit typically 1–2 months' rent.
  • Long-term rental (12+ months) — a standard vivienda habitual contract. The tenant is protected by law: minimum term 5 years (for individual landlords) or 7 years (for corporate landlords). Stable income, minimal void periods.

Why the short-term rental ban is good for investors

At first glance, short-term rental looks more profitable — nightly rates are higher, after all. But when you add up all costs and risks, the picture changes dramatically.

Income stability

Short-term rental in Costa Blanca resort towns follows a "4 months earning — 8 months empty" pattern. Peak season runs from June to September; for the rest of the year the property either sits vacant or is let at a heavy discount. Medium and long-term rental in Guardamar delivers income 12 months a year without interruption.

Lower operating costs

Short-term rental requires: cleaning after every guest (€40–80 per turnover), linen laundering, key handover and check-in, platform commissions (15–20%), advertising, professional photography, and a property management company (20–30% of income). With long-term rental, management costs are minimal.

Less wear and tear

A permanent tenant treats the property as their home. Tourists treat it as a hotel room. After a season of short-term lets, cosmetic repairs are often needed: furniture replacement, new textiles, minor fixes. With long-term tenants, the property wears much more slowly.

Model comparison: real numbers

ParameterShort-term rental (Torrevieja)Long-term rental (Guardamar)
Purchase price (2-bed apartment)€120,000€110,000
Monthly rate€800–1,200 (season) / €300–400 (winter)€550–700 (year-round)
Occupancy per year5–7 months (realistic)11–12 months
Gross annual income€6,000–8,500€6,600–8,400
Management costs€1,500–2,500€300–600
Cleaning, linen, keys€1,000–2,000€0
Platform commissions€900–1,700€0
Repairs and furniture replacement€500–1,000€100–300
Net annual income€2,100–3,300€5,700–7,500
Net yield1.8–2.8%5.2–6.8%

The numbers speak for themselves. Long-term rental in Guardamar outperforms short-term rental in Torrevieja by nearly double in net yield — thanks to zero void periods and minimal operating costs.

Why the ban is an advantage for owner-occupiers

If you are buying an apartment in Guardamar for your own use — whether permanent or seasonal — the short-term rental ban works in your favour.

In Torrevieja, Orihuela Costa and other resort towns where short-term lets are permitted, the reality during high season looks like this: new neighbours every week, noise until late at night, slamming doors, suitcases in the hallway at 6am, overcrowded communal pools. This is the reality that property brochures never mention.

In Guardamar you live among permanent residents. Your neighbours are Scandinavian retirees, Belgian and German families, Spaniards who chose this town precisely for its tranquillity. People know each other by name, greet each other in the lift, and walk the promenade together every morning.

Our agents, who live and work in this area, hear the same phrase from clients time and again: "We initially looked at Torrevieja, but after spending a week there in August we knew we wanted Guardamar." Peace is not boredom — it is quality of life.

Types of rental contract in Spain: what you need to know

Spanish law clearly distinguishes between several categories of rental. Understanding these differences is critical for any investor.

Long-term rental (vivienda habitual)

Regulated by Article 2 of the LAU (Ley de Arrendamientos Urbanos). Key terms:

  • Minimum term: 5 years (individual landlord) or 7 years (corporate landlord)
  • Annual indexation: linked to the INE index (Instituto Nacional de Estadística), typically 2–3% per year
  • Deposit: 1 month's rent (by law), in practice often 2 months
  • Tenant termination: 30 days' notice after the first 6 months
  • Landlord termination: only on grounds specified by law (personal use, major renovation)

Medium-term rental (temporal)

Regulated by Article 3 of the LAU. The contract is concluded for a specific term and a specific purpose (work, study, medical treatment, winter stay). Terms:

  • Duration: 1 to 11 months (no automatic renewal)
  • Deposit: 2 months' rent (standard practice)
  • Indexation: by mutual agreement
  • Flexibility: furniture, services and utilities can be included in the rent

Medium-term rental is the ideal format for Guardamar. The town attracts "winter sun" residents — people who come for 3–6 months to spend the cold season on the coast. This is a stable, financially reliable tenant segment.

Rental yields in Guardamar: real 2026 figures

At Granfield Estate we manage rental property in Guardamar and can provide real data rather than theoretical projections.

Property typePurchase priceLong-term rentMedium-term rent (winter)Gross yield
Studio / 1 bedroom€80,000–110,000€400–550/mo€500–700/mo5.5–7.0%
2-bedroom apartment€110,000–160,000€550–750/mo€650–900/mo5.0–6.5%
Bungalow / townhouse€130,000–200,000€600–850/mo€750–1,100/mo5.0–6.0%
Penthouse€150,000–250,000€700–1,000/mo€900–1,300/mo5.0–6.5%
Villa€250,000–450,000€1,000–1,800/mo€1,200–2,200/mo4.5–5.5%

Medium-term winter rental generates 15–25% more than a standard long-term contract. The optimal strategy is a blended approach: a long-term contract for 9 months plus a medium-term winter let for 3 months. This delivers maximum yield with minimal void periods.

Best areas in Guardamar for rental investment

Town centre and seafront (Paseo Marítimo)

Apartments within walking distance of the beach and promenade are the most liquid segment. Tenants — both long-term and winter residents — primarily want proximity to the sea. Prices start at €100,000 for a 2-bedroom apartment. Rental rates are 10–15% above the market average.

Urb. El Edén and surrounding urbanisations

Quiet residential complexes with communal pools, gardens and parking. Popular with families and retirees. Prices are lower than the centre: from €85,000 for a 2-bedroom unit. Stable long-term rental demand, less seasonality.

Dunes and pine forest district

A unique location bordering the Dunas de Guardamar nature reserve. Apartments overlooking the forest and close to one of the finest beaches on the Costa Blanca. Premium segment: from €130,000. High demand for winter rental among Scandinavians.

Guardamar Hills and outskirts

Villas and townhouses on elevated ground with sea and pine forest views. Very low building density, privacy. Suited to long-term family rentals. Prices: from €180,000 for a townhouse, from €250,000 for a villa.

Landlord costs when renting out property

Before calculating yield, it is important to understand every cost a rental property owner faces in Spain.

Mandatory costs

CostAmountFrequency
IBI (property tax)€300–800Annual
Comunidad (building maintenance)€40–120/moMonthly
Home insurance€150–300Annual
Basura (refuse collection)€80–150Annual
Non-resident income tax (IRNR)19% of net income (EU) / 24% (non-EU)Annual

Optional costs

  • Property management company: 8–12% of rental income (if you do not manage it yourself)
  • Minor repairs: €200–500/year (minimal with long-term tenants)
  • Energy performance certificate: €100–150 (valid for 10 years)
  • Legal fees for contract preparation: €100–200 (one-off cost)

In our experience, net yield after all costs for a 2-bedroom apartment in Guardamar is 4–5.5% — among the best figures on the Costa Blanca for a stable, low-risk rental model.

How Granfield Estate helps with rental investment

Granfield Estate is a licensed real estate agency (RAICV1663), a member of the Asivega association, with an office in La Mata. We do not just sell property — we support the entire cycle: from finding the right investment to letting it and managing it on your behalf.

  • Property selection tailored to your rental strategy. Our agents know which apartments and which complexes generate the highest tenant demand. We do not sell "whatever is available" — we find what will generate income.
  • In-house lawyer. Legal due diligence, contract drafting, registry filings. Over 10 years of experience with Costa Blanca property. Free initial consultation at our office.
  • Rental management. Tenant sourcing, affordability checks, contract execution, payment monitoring, day-to-day issue resolution. You receive income — we handle everything else.
  • Local presence. Our office is 5 minutes from Guardamar. If a tenant needs assistance, we are on-site within the hour — not at the other end of the country.

Office: Av. Bélgica 1, C.C. Parquemar, La Mata, 03188 Torrevieja (Alicante)
Phone: +34 865 44 33 33

Browse property in Guardamar del Segura →

Frequently asked questions

Can I rent out my apartment in Guardamar on Airbnb?

No. The municipality of Guardamar del Segura does not issue short-term tourist rental licences. Listing on Airbnb, Booking or similar platforms without a licence is illegal and carries fines. Only medium and long-term rental is permitted — contracts of one month or longer.

What rental yield can I realistically expect in Guardamar?

Gross yield ranges from 5% to 7% depending on property type and strategy. Net yield after all costs (taxes, comunidad, insurance, management) is 4–5.5%. This is higher than the real net yield from short-term rental in neighbouring towns, where high operating costs consume most of the income.

Who rents property in Guardamar on a long-term basis?

The main tenant categories are: Northern European retirees (Scandinavia, Germany, Belgium, Netherlands) who spend 3–12 months a year on the coast; young European families working remotely; and Spanish families relocating from larger cities. This is a financially reliable and responsible audience.

Could the short-term rental ban be lifted?

In theory, yes — the municipality could reverse its decision. However, the trend across Spain is moving in the opposite direction: more and more cities are restricting short-term lets (Barcelona, Málaga, Valencia). Guardamar is unlikely to go against the national trend, especially as the current policy supports the stability of the residential community — the town's key selling point.

Do I need to come to Spain to arrange the rental?

Not necessarily. You can grant power of attorney (poder notarial) to an agency or lawyer who will represent your interests. Our in-house lawyer regularly handles such arrangements. Contract signing, registration and key handover can all be done remotely. However, we recommend at least one visit to inspect the property before purchase.

Why Granfield Estate?

  • Office on the coast — we live here

    Our office is in La Mata, Torrevieja. We know every neighbourhood, every street and the real prices — not from a catalogue, but from daily work on the ground.

  • In-house lawyer — 10+ years of experience

    NIE, bank account, property check, contract, notary — legal support at every step. First consultation free.

  • 🏠
    Property management

    Buying to rent? Our management company handles tenant search, maintenance and all questions.

  • 🌐
    We speak your language

    English, Spanish, Russian, German, Finnish, Swedish and more. Licence RAICV 1663, member of Asivega.

Browse properties Contact us

Granfield Estate · Av. Bélgica 1, C.C. Parquemar, La Mata, 03188 Torrevieja · +34 865 44 33 33

Granfield Estate ™ (2016 - 2025) - real estate agency in Spain. Alicante, Torrevieja, Orihuela Costa.
License No. RAICV1663 - Register of Real Estate Agents of the Valencian Community.
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