Investing in Costa da Morte for tourist rentals: complete guide

The Vacation Rental Boom on the Costa da Morte

The Costa da Morte, that wild and beautiful stretch of Galicia's coastline, has become one of Spain's most dynamic vacation rental markets. Between 2022 and 2025, the region recorded tourism growth exceeding 30%, driven by the popularity of the Camino de Santiago, nature tourism, and the growing trend of remote work.

For real estate investors, this represents an unprecedented window of opportunity: still-affordable acquisition prices, returns that outperform saturated markets like the Costa del Sol or the Balearic Islands, and appreciation potential that only emerges once in the lifetime of an emerging market.

Tourism Market Overview

The data speaks for itself. The Costa da Morte is undergoing a profound transformation in its tourism sector:

• Tourism growth exceeding 30% (2022-2025): The combination of digital marketing, hiking routes, and Galicia's rising profile as a gastronomic destination has driven visitor numbers sharply upward.
• Over 100,000 pilgrims annually: The final stretch of the Camino de Santiago, ending in Fisterra and Muxía, draws walkers from around the world year-round.
• Remote work and extended stays: A growing number of digital nomads choose the Costa da Morte for its quality of life, low cost of living, and improving connectivity.
• Improving low-season occupancy: While winter occupancy barely reached 20% a few years ago, it now stands between 40% and 60%, thanks to pilgrimage tourism and weekend getaways.

Rental Yields by Property Type

Not all properties generate the same returns. Gross annual yield varies significantly depending on the type of property:

• 1-bedroom apartments (Cee/Corcubión): 5-7% gross yield. Ideal for couples and individual pilgrims.
• 2-bedroom apartments: 6-8%. The most versatile segment, serving couples, small families, and groups of friends.
• Traditional houses (Fisterra/Muxía): 6-9%. High tourist demand and authentic Galician charm.
• Beachfront properties: 8-12%. The premium segment, with higher nightly rates and constant demand.
• Renovated stone houses: 7-10%. The appeal of traditional restoration creates a unique selling point on platforms like Airbnb.

Occupancy Rates by Zone

Annual occupancy varies depending on the specific location within the Costa da Morte:

• Fisterra: 65-80% annual occupancy. The highest in the area, thanks to a steady flow of pilgrims and tourists throughout the year.
• Muxía: 55-70%. Rapid growth, especially following infrastructure improvements and tourism promotion of the Sanctuary of the Barca.
• Cee: 45-60%. More residential, with lower tourist intensity but lower entry prices.
• Corcubión: 50-65%. Premium niche, with a listed historic quarter that attracts quality tourism.
• Camariñas: 55-70%. Summer-focused, with significant peaks in July and August.

Estimated Nightly Rates (2025-2026)

Average nightly rates depend on the season and type of accommodation:

• Low season (November-March): 40-70 EUR/night. Pilgrims and remote workers maintain a steady flow.
• Shoulder season (April-June, September-October): 60-110 EUR/night. Galician spring and autumn are increasingly popular.
• High season (July-August): 90-180 EUR/night. Peak demand, especially for properties with sea views.
• Holy Week and Camino peaks: 70-130 EUR/night. Periods of intense, concentrated demand.

Legal Requirements in Galicia

Operating a tourist rental on the Costa da Morte requires compliance with specific Galician regulations:

• Registro de Empresas y Actividades Turísticas (REAT): Mandatory registration with the Xunta de Galicia before starting operations.
• TUAA (Título de Alojamiento Turístico Autorizado): Certificate confirming the property meets requirements for tourist accommodation.
• Safety requirements: Fire extinguisher, first aid kit, visible emergency information, and marked evacuation routes.
• Maximum occupancy: The authorized capacity limit must be respected based on the property's size and layout.
• Registro de Turismo de Galicia: Every tourist property must be registered with its registration code visibly displayed in listings.
• Tax obligations: Rental income must be declared on your IRPF (income tax) or corporate tax, depending on your investment structure.
• VAT (IVA): May apply if you offer hotel-like additional services (breakfast, daily cleaning, reception).

Operating Costs

Managing a vacation rental involves costs that every investor should account for:

• Cleaning per guest changeover: 40-60 EUR per turnover.
• Platform fees: Airbnb charges hosts 3%; Booking.com charges 15-17%.
• Professional management: If you outsource full management, agencies charge 20-30% of revenue.
• Linen and towels: 15-25 EUR per changeover.
• Utilities (water, electricity, wifi): 100-200 EUR/month.
• Liability insurance: 300-600 EUR/year.
• Maintenance: Budget 5-10% of annual revenue for repairs and replacing furnishings.

Investment Calculation Example

Let's look at a realistic scenario for a 2-bedroom apartment in Fisterra:

• Purchase price: 120,000 EUR
• Renovation and furnishing: 15,000 EUR
• Taxes and closing costs: 12,000 EUR
• Total investment: 147,000 EUR

Estimated annual revenue:

• 250 occupied nights x 75 EUR average rate = 18,750 EUR
• Operating costs (30%): 5,625 EUR
• Annual net income: 13,125 EUR
• Net yield: 8.9%

On top of this, estimated property appreciation of 3-5% annually makes this a dual-return investment: rental income plus capital gains.

Best Property Types to Invest In

• 1-2 bedroom apartments near town centers: Maximum demand and guest turnover. Easy to manage.
• Stone houses with character: Unique appeal on Airbnb and Booking. Guests seek authenticity.
• Properties with sea views: Command premium rates and generate better reviews.
• Houses with outdoor space: Terraces, gardens, or patios are highly valued by families and groups.

Risks and How to Mitigate Them

• Seasonality: The main risk. Mitigated by the steady flow of Camino pilgrims and promoting long stays for remote workers.
• Regulatory changes: Regulations may tighten. Stay informed through the Xunta de Galicia and consult an administrative advisor.
• Growing competition: Differentiate with unique properties, careful decor, and exceptional guest attention.
• Atlantic storms: Winter storms can cause extra maintenance costs. Get adequate insurance and schedule regular inspections.

Start Your Investment on the Costa da Morte

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
• Tourist rental on the Costa da Morte: profitability, requirements and keys to success - Detailed profitability and legal requirements for tourist rental

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The Costa da Morte offers a unique combination of rental yield, property appreciation, and quality of life that few real estate markets can match. If you are considering investing in vacation rentals, contact Cristina Vázquez to access the best opportunities available in Fisterra, Muxía, Cee, Corcubión, and Camariñas. With deep local knowledge and proven experience, we will help you find the perfect property to maximize your investment.