Top places to buy a beach house to rent in 2025 (Europe)

Buying a beach house for vacation rental can be a profitable investment and, at the same time, a personal refuge for getaways. Europe offers a wide variety of coastal destinations with different characteristics, prices and tourist attractions. In this article we explain why now is a good time to buy, what you should consider, how to manage the purchase and rental, and we show you the best destinations by country.

Why is now a good time to buy a beach house?

Post-pandemic tourist recovery: European tourism is returning to pre-COVID levels, with a special boom in vacation rentals.

Low interest rates: Although they have risen compared to previous years, they are still accessible to many buyers.

Growing demand for vacation rentals: More people prefer to rent whole houses and apartments facing the sea for safe and private vacations.

Digitalization of property management: Platforms like Airbnb, Vrbo, and remote management systems facilitate rental and property control at a distance.

What to consider before buying a beach house

Define your objectives

Personal use or investment: If you plan to use the house yourself, you may prefer a property with more amenities. If it's just for rent, you should prioritize profitability and strategic location.

Time horizon: Do you want a short-term investment to generate income quickly or do you prefer a property that increases its value in the long term?

Type of rental: Short-term (vacation) or long-term (temporary residents) rentals? This will influence demand and regulation.

Do your research before buying

Seasonality: Some destinations have a very marked high season (e.g. Costa Brava in summer) while others have a more distributed demand.

Local regulations: Many cities regulate vacation rentals with permits, day limits or special taxes.

Accessibility: Good access from airports, public transport and nearby services.

Competition: Evaluate the quantity and quality of similar properties in the area.

Find a specialized real estate agent:
Ask for references.
Make sure they have experience with vacation rental properties.
That they know the local regulations.
They can help you negotiate the price and avoid properties with legal or maintenance problems.

Draw up a business plan

Income estimation: Based on average occupancy and nightly rate.

Expenses: Taxes, maintenance, cleaning, management, insurance, supplies.

Expected profitability: Calculate the capitalization rate (CAP rate).

Marketing plan: Platforms to advertise, extra services, promotions.

Beach house vs apartment (condo)

Privacy:
A beach house offers greater privacy, more space and autonomy. On the other hand, an apartment usually implies sharing common areas with other neighbors, such as hallways or elevators.

Services:
In a beach house, you are in charge of all services and maintenance. In an apartment, it is common to have shared services such as a pool, security or cleaning of common areas, managed by the community.

Maintenance:
Houses require more attention and maintenance expenses, since everything depends on the owner. Apartments usually have simpler maintenance and many tasks are covered by the community fee.

Price:
Beach houses, in general, are more expensive than apartments, both in terms of purchase and operating costs. Apartments are more affordable and allow you to start with a lower investment.

Profitability:
Houses are more attractive to families or groups, which can translate into greater flexibility in prices and longer stays. Apartments, on the other hand, tend to attract couples or individual travelers, with high turnover and good occupancy during the high season.

How much does a beach house cost?

Spain: from 150,000 € in emerging areas to over 1,000,000 € in premium areas (Marbella, Mallorca).

Portugal: from 200,000 € in Algarve or Costa de Lisboa.

Italy: from 250,000 € in less known areas, to several million in Amalfi Coast or Sardinia.

France: Côte d'Azur or Brittany, from 300,000 €.

Greece: islands like Crete or Rhodes, from 150,000 €.

Croatia: Dalmatia, competitive prices from 100,000 €.

Additional management costs

Regular maintenance: painting, repairs due to wear or marine climate.

Professional cleaning: between 50-150 € per stay.

Rental management: between 15% and 30% of gross income.

Insurance: specific insurance for properties by the sea tends to be more expensive.

Local taxes and fees: municipal taxes, tourism taxes.

How to buy a beach house to generate income

Consider the CAP rate (capitalization rate). The formula is:

CAP rate = (Annual net income / Purchase price) × 100

For example, if you buy a house for €300,000 and earn €18,000 net per year, the CAP rate is 6%.

- Watch out for hidden costs: renovations, community costs (in apartments), climate impact (saltpeter, humidity), high public services.
- Taxes on vacation rentals: Vary greatly by country and municipality. Spain applies taxes on income and, in some regions, additional tourist taxes. Portugal has rental income taxes with possible deductions. Always consult a local tax advisor.

How to finance a beach house

Mortgages for second homes: tend to have stricter conditions and higher rates.

Investment loans: specialized banks for rental properties.

Personal savings and contributions: recommended to cover at least 20%-30% of the value.

Consider initial costs: taxes, renovations, furniture.

Best destinations to buy a beach house in Europe in 2025

Spain: Costa del Sol, Costa Blanca and the Balearic Islands

Spain remains a leader in tourism and vacation rentals. The Costa del Sol (Málaga, Marbella) offers high demand and premium services. Costa Blanca (Alicante, Villajoyosa) has more affordable prices and good weather all year round. The Balearic Islands (Mallorca, Ibiza) combine nature and nightlife, ideal for exclusive rentals.

Portugal: Algarve and Costa de Lisboa

The Algarve is famous for its spectacular beaches and golf, with high international demand. The Costa de Lisboa, including Cascais, combines city and beach with excellent infrastructure.

Italy: Tuscany and Amalfi Coast

The coastal Tuscany and Amalfi Coast are highly valued destinations, although with higher prices. Ideal if you're looking for a property with high tourist and cultural potential.

How to make your property attractive to guests

Careful and modern decoration: creates a welcoming atmosphere.

Complete equipment: air conditioning, high-speed Wi-Fi, equipped kitchen.

Professional photos: invest in good images.

Offer flexibility: allow remote check-in or self check-in.

Extra details: welcome with local products, personalized tourist guide, bicycles or water sports equipment.

Impeccable maintenance: professional cleaning and quick response to incidents.

How to make money with your beach house

Diversify on platforms: Airbnb, Booking, Vrbo, etc.

Optimize prices: adjust rates according to season, local events or demand.

Promotions and discounts: for long stays or advance bookings.

Additional services: airport transfers, excursions, car or sports equipment rentals.

Buying a beach house in Europe in 2025 is an excellent opportunity if you do a good prior study and manage the property well. Each destination has its particularities and its audience, so choose according to your profile and objectives.