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.

Investing 8 May 2025 2 min 293

Landlord Insurance in Galicia: Guide for Foreign Property Owners

Why Do You Need Landlord Insurance?

If you're a foreign owner with a rental property in Galicia, landlord insurance protects you against the main risks: unpaid rent, property damage and legal costs for eviction. Without this protection, a defaulting tenant can cost you over 6,000 € in losses and legal fees.

Types of Coverage Available

Rent guarantee: Covers pending monthly payments, typically 12-18 months. The most important coverage.
Property damage: Repairs damage beyond normal wear and tear. Includes furniture if furnished.
Legal defense: Covers lawyer, procurator and court fees for eviction or claims.

Insurer Comparison in Galicia

Insurer	Rent Coverage	Damage	Legal	Annual Price
Adeslas Propietarios	12 months	Up to 3,000 €	Included	180-280 €
Mapfre Alquiler Seguro	18 months	Up to 5,000 €	Included	220-350 €
Mutua de Propietarios	12 months	Up to 4,000 €	Included	150-250 €
Allianz Alquiler	12 months	Up to 3,500 €	Included	170-260 €

Prices are indicative for Costa da Morte properties with rents of 500-900 €/month.

The Eviction Process in Galicia

Notarial demand: Send a burofax giving 10 days to pay.
Eviction lawsuit: File at the First Instance Court (Cee, Corcubión or Santiago).
Court hearing: If uncontested, the judge sets the eviction date.
Eviction: Typically 2-4 months from filing.

The full process takes 4-8 months. Landlord insurance covers legal costs and unpaid rent during this period.

Tourist vs Long-Term Rental

Long-term (LAU): Minimum 1 year, extendable to 5. Standard insurance applies.
Tourist (VTAR): Short stays. Specific tourist coverage needed. Airbnb offers partial guarantees (AirCover up to $1M).

Tax Deductibility for Foreigners

Non-resident owners can deduct landlord insurance on Modelo 210. The insurance is considered a deductible expense from rental income, reducing the taxable base.