Tourist rental on the Costa da Morte: Profitability, requirements and keys to success

The Tourist Rental Business on the Costa da Morte

Tourist rental has become one of the most profitable investment options on the Costa da Morte. The combination of exceptional natural heritage, the growing popularity of the Camino de Santiago (attracting over 300,000 pilgrims annually), and still-competitive entry prices makes for returns hard to match elsewhere in Spain.

Real Profitability: Concrete Numbers

• Peak season weekly income (June-September): €500-€1,200/week for a 2-bedroom apartment. Sea-view properties in Fisterra or Corcubión can reach €1,500/week.
• Shoulder season (April-May, October): €300-€600/week.
• Low season (November-March): €150-€350/week (pilgrim flow maintains some demand).

Average occupancy rates:

• July-September: 70-85%.
• April-June and October: 40-55%.
• November-March: 20-35%.

Gross annual yield: Between 6% and 10% for a well-managed property.

Legal Requirements: REAT Registration

1. REAT Registration

The Registro de Empresas y Actividades Turísticas (REAT) from the Xunta de Galicia is mandatory. Submit your application through the Xunta's electronic portal with floor plans, habitability certificate, and property description. Processing time: 2-4 months.

2. Tourism Office Declaration

A responsible declaration before the competent tourism office is required before starting operations.

3. Liability Insurance

Specific tourist accommodation liability insurance costs €200-€500/year.

Booking Platforms

• Booking.com: Market leader in continental Europe. Commission: ~15%.
• Airbnb: Dominant for Anglo-Saxon and experience-seeking travelers. Commission: 3% (host) + 14% (guest).
• Own website: Complementary, captures repeat clients commission-free. Cost: €500-€2,000 to create.

Multi-channel strategy with a channel manager to sync calendars is most effective.

Tax Regime: IRPF

Tourist rental income must be declared as property income. Deductible expenses include: mortgage interest, IBI, insurance, community fees, utilities, depreciation (3% annually), advertising, and cleaning.

Non-residents pay 19% (EU residents) or 24% (non-EU) on gross income without deductions.

Furnishing Budget

• Basic (€5,000-€8,000): Functional furniture, bedding, basic kitchenware, Wi-Fi.
• Mid-range (€8,000-€12,000): Better quality, decorative elements, Smart TV, capsule coffee maker.
• Premium (€12,000-€15,000): Professional interior design, high-end appliances, hotel-style amenities, outdoor furniture.

Typically amortized in 1-2 seasons.

Best Locations for Tourist Rental

Fisterra

The star destination. Camino de Santiago plus "end of the world" appeal generates constant demand. Properties near the center or lighthouse achieve highest occupancy.

Corcubión

Historic charm and seaside promenade attract longer-stay tourists (1-2 weeks).

Muxía

The sanctuary and spectacular cliffs attract pilgrims and nature tourists. Rising prices but still room for growth.

The Camino de Santiago Impact

The final stretch from Santiago to Fisterra and Muxía creates a constant demand flow from April to October that other coastal areas don't have. To maximize this segment: offer laundry facilities, kitchen access, Camino information, and last-minute booking flexibility.

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Related articles

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• Investing in tourist rental in Galicia: ROI, regulations and best areas - Overview of Galicia's tourist rental market and yields
• Investing in Costa da Morte for tourist rentals: complete guide - Complete vacation rental investment guide for Costa da Morte

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Want to explore tourist rental investment opportunities? I know the highest-potential properties on the Costa da Morte and can advise you on each one's economic viability. Let's talk.