Imagine owning a villa on one of the Mediterranean’s most desirable islands while generating excellent rental income. Buying property in Ibiza is not only about luxury and lifestyle – it’s also a smart investment with guaranteed high returns.
Here’s why purchasing a villa in Ibiza and renting it out is a strategic financial decision – and how to calculate your real ROI.
Ibiza: A Real Estate Gem That Holds Its Value
Ibiza offers more than beautiful beaches and exclusive parties. The island attracts global investors due to its:
- Year-round rental demand
- Limited supply of premium properties
- Stable and steadily appreciating real estate market
Buying a villa in Ibiza means securing your capital in a solid, growing market with strong international appeal.
What Kind of Returns Can You Expect from Renting a Villa in Ibiza?
A villa in Ibiza provides a privileged lifestyle and attractive income, depending on the rental model:
- Long-term rental (12-month contract)
- Annual income: €60,000 – €100,000
- Ideal tenants: expat families, long-term professionals, high-net-worth EU residents
- Benefits: stability, low tenant turnover
- Seasonal rental (minimum 6 months)
- Estimated income per season: €45,000 – €70,000
- Typical tenants: seasonal tourism workers, vacationing entrepreneurs, digital nomads
- Benefits: flexibility, higher monthly yield
- Holiday rental with tourist license
- Potential high-season income (June–September): €80,000 – €150,000
- Annual income (including shoulder & low season): up to €200,000 or more
- Benefits: maximum returns + personal use in off-peak months
Important: To legally operate a holiday rental in Ibiza, the property must have a tourist license (ETV). This boosts its market value and ensures legal, secure, and highly profitable income.
How to Calculate Your Investment Yield
Use this formula to calculate gross annual rental yield:
Yield (%) = (Annual rental income / Purchase price) x 100
Example:
Purchase price: €2,000,000
Rental income: €180,000
Yield = (180,000 / 2,000,000) x 100 = 9% gross annual return
A 9% yield on a luxury property is not just good – it’s exceptional!
And that’s without considering capital appreciation, as villas in Ibiza consistently increase in value due to ongoing demand and exclusivity.
Ready to Invest in Ibiza?
We offer a curated selection of high-yield villas – some already with a tourist license, others with potential to obtain one. We support you at every step: from purchase to rental management.
Ibiza isn’t just an island – it’s an investment opportunity that blends sun, exclusivity, and financial performance.
Invest smart. Invest in Ibiza.
Want to know more?
Contact us today for tailored advice and discover the best villas to invest in and rent out in Ibiza.
