What is the average rental yield in Galicia?

Average gross yield on the Costa da Morte is 6-9% for tourist rental and 4-6% for residential. Best areas: Corcubión (8-9%), Cee (7-8%), Camariñas (7-9%). The Spanish average is 4-5%.

Is investing in Galicia property a good idea?

Galicia offers competitive prices (€800-1,800/m²), growing tourism demand, improving infrastructure, and high quality of life. Low risk combined with high relative returns makes it attractive.

Vacation rental or long-term?

Vacation rentals generate 30-60% more income but need active management and a tourist license. Long-term offers stability. The optimal strategy is usually mixed: vacation in high season, long stays the rest of the year.

What expenses does a rental property have?

IBI (€400-1,200/year), community fees (€600-1,800), insurance (€300-600), maintenance (1-2% of value), management (15-25% with agency), platform fees (3-15% for tourist). Net income is typically 60-75% of gross.

Investment 5 April 2025 2 min 365

Investing in tourist rental in Galicia: ROI, regulations and best areas

Investing in Tourist Rental in Galicia: An Opportunity with Real Data

The tourist rental market in Galicia is experiencing unprecedented growth. Affordable acquisition prices, growing tourist flow driven by the Camino de Santiago, and favorable regulations create a compelling scenario for real estate investors.

Real Profitability: 7-12% ROI

Gross yields range from 7% to 12% annually depending on location and management:

Costa da Morte (Fisterra, Corcubión): 8-12% ROI. Low acquisition prices (from €85,000) combined with constant tourist demand.
Rías Baixas (Sanxenxo, Baiona): 6-9% ROI. More established market with higher summer demand.
Santiago de Compostela: 5-8% ROI. Urban market with year-round cultural tourism demand.
Rural Galicia: 6-10% ROI. Lower investment, seasonal but loyal demand.

Best Investment Zones in 2026

Fisterra and Muxía lead with 80-90% high-season occupancy at €80-180/night for 2-bedroom properties. Corcubión is an emerging market with great appreciation potential. Sanxenxo offers a mature, liquid market.

Regulations: VUT vs AAVV

Galicia has two main tourist accommodation categories:

VUT (Tourist Use Dwellings): The standard "Airbnb" model. Requires REAT registration, responsible declaration, habitability certificate, liability insurance, and heating systems. Processing time: 2-4 months. Free to register.
AAVV (Tourist Apartments): Stricter regulation requiring municipal activity license, minimum dimensions, and fire prevention standards. More prestigious but more complex to set up.

Professional Management Keys

Dynamic pricing: Can increase revenue by 20-30%.
Professional photography: 118% more views (€200-500 investment).
Reviews: Maintaining 9.0+ on Booking = 5-10% more bookings.
Cleaning: The #1 review factor. Budget €50-80 per turnover.

Tax Implications

Spanish residents declare as property income with full deduction rights. Non-residents from EU pay 19% with deductions; non-EU pay 24% on gross income without deductions.

Total Investment Budget

For a 2-bedroom property on the Costa da Morte: €123,000-275,000 total (including acquisition, renovation, furnishing, and closing costs). Expected gross annual income: €10,000-25,000.

Tourist rental on the Costa da Morte: profitability and keys to success - Detailed profitability and legal requirements for tourist rental
Investing in Costa da Morte for tourist rentals: complete guide - Complete vacation rental investment guide for Costa da Morte

Considering tourist rental investment in Galicia? I know the highest-yield properties and can advise on each opportunity's viability. Let's discuss your investment.

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Written by Cristina Vázquez

Real estate agent in Corcubión with over 10 years of experience in the Costa da Morte market.

Contact Cristina →