Paradis Suites; Tourist Apartment Investment on the Costa Blanca

Most second homes bleed money. Property taxes, community fees, utility contracts running year-round, maintenance bills whether you visit or not — the costs never stop.

This development turns that model on its head. This boutique development of just 10 tourist-use apartments in Villajoyosa is managed as a fully operational hospitality business by a specialist management company. When guests stay, you earn. When the apartment is free, you can use it — contributing a market-rate compensation to the shared pool, keeping all seven co-owners aligned. During your first two years, the management company guarantees a minimum of €25,000 net per year, regardless of occupancy.

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Location — Villajoyosa, Costa Blanca's Best-Kept Secret

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Villajoyosa (La Vila Joiosa) sits quietly at the midpoint of Spain's Costa Blanca, between the energy of Benidorm and the boutique calm of Altea. It offers authentic Spanish town life — a historic colourful seafront, renowned chocolate-making heritage, excellent gastronomy and Blue Flag beaches that stay uncrowded even in peak season.

For short-term rental investors, that combination of authenticity and accessibility is increasingly valuable. Northern European visitors who come back year after year specifically seek out places that feel genuinely lived-in.

• 500 m from the beach — walkable for guests
• 35 minutes from Alicante International Airport (ALC)
• Walking distance to Villajoyosa old town, restaurants and markets
• Marina Baixa coast — between Benidorm and Altea
• Strong year-round demand: beach summer · golf & gastronomy spring/autumn · digital-nomad winter
• Restrictive new licence environment — structural supply constraint supporting long-term values

The Property — At a Glance

DetailSpecificationDevelopmentApartamentos Turísticos — VillajoyosaLocationVillajoyosa (La Vila Joiosa), Alicante — Costa Blanca, SpainDistance to beach500 m — walking distanceNearest airportAlicante International (ALC) — 35 minTotal units10 exclusive apartmentsUnits in rental pool7 (apartments 1A, 1B, 2A, 2B, 3A, 3B, 4A)Bedrooms / bathrooms3 bedrooms / 2–3 bathroomsBuilt area83–85 m²Private terrace18–29 m² with sea viewsAsset classTourist use — perpetual tourism licence (tertiary)Building permit✓ ObtainedDelivery / Deed signingTurnkey: furniture (€18–20K inc. IVA), kitchen, A/C, parking included — Public deed: Summer 2028Price range€500,000 – €550,000 (ex-VAT)

Lifestyle — Owner Use, Up to 120 Days a Year

Every owner can use their apartment for personal stays for up to 120 days per year — the maximum permitted under Spanish tourist apartment regulations. There are no contractual blackout periods; you can visit in July or August by booking early, before the guest calendar fills up.

Personal use requires 30 days' advance notice to block the booking calendar. Confirmed guest reservations take precedence.

When you use the apartment personally, a market-rate compensation is charged to your account and distributed among the other six pool owners — based on the current published rate on Airbnb, Booking.com or the building's own channel. This ensures the income pool remains fair for all participants.

During personal use, standard guest operating costs (platform commissions, guest cleaning, laundry, amenities) are not applied. You arrange your own cleaning and cover your own utilities.

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Returns — Rental Income, What to Expect

Years 1–2: The Guaranteed Floor

€25,000 NET / year — guaranteed for the first 24 months.Incorporated into the public deed of sale (escritura pública) and enforceable as a título ejecutivo under Spanish civil procedure. If the pool underperforms, the management company tops up the difference from its own balance sheet.

That is a 5% net yield on a €500,000 investment — guaranteed by contract, notarised before a Spanish public notary. Not projected. Guaranteed.

Year 3 Onwards — Three Scenarios

All figures are net to you after the 50% management fee:

ScenarioAnnual Net IncomeOccupancyADRConservative€15,000–18,000 / yr55–62%~€130–138Base case€20,000–22,000 / yr63–68%~€140–145Optimistic+€25,000 / yr69–72%~€150–165

Figures calibrated against INE / Turisme Comunitat Valenciana occupancy data and AirDNA market intelligence for premium 3-bedroom tourist apartments in the Marina Baixa district.

The 7-Unit Shared Income Pool

The 7 participating apartments pool their gross lodging revenue monthly. After the 50% management fee, the net is split into 7 equal shares. Your income reflects the aggregate performance of the whole building, not whether your specific unit was booked on any given week.

Each month, the operator provides every owner with a detailed performance report showing occupied days, gross revenue and each owner's net share. Each owner then issues an invoice to the management company for their monthly share plus 21% IVA — formalising the rental income for tax purposes.

During the first two years, your net income is guaranteed at €25,000 per year. If pooled income falls short, the management company makes up the difference entirely at its own cost. From year three onwards, income reflects competitive market rates with no guaranteed floor.

Cost Advantage — What You Do NOT Pay

Own a residential apartment on the Costa Blanca and you pay month in, month out: community fees, maintenance, water, electricity, internet, alarm, home insurance — whether you visit or not. On a premium new-build, those costs easily exceed €5,000 per year on top of IBI. The 50% management fee absorbs all of it.

ExpenseResidential OwnerTourist Apartment OwnerAnnual SavingCommunity fees~€150/month → €1,800/yr€0 — covered by management fee€1,800Building maintenance & cleaning~€60/month → €720/yr€0 — covered by management fee€720Water (utilities during stays)~€50/month → €600/yr€0 — covered by management fee€600Electricity~€70/month → €840/yr€0 — covered by management fee€840Internet / fibre~€40/month → €480/yr€0 — covered by management fee€480Alarm / security~€35/month → €420/yr€0 — covered by management fee€420Home insurance~€35/month → €420/yr€0 — professional liability insurance€420Total annual saving~€5,280 / year

Your fixed annual owner costs:

CostAmountIBI (property tax)~€950 / yearWaste / municipal levy~€180 / yearTotal~€1,130 / year

Over a 10-year term, that is approximately €52,800 in costs a comparable residential owner would have paid — and you do not.

Tax Advantage — Nearly €50,000 Back in Your Pocket

Buy a residential apartment and you pay 10% VAT — non-recoverable. On €500,000 that is €50,000 lost permanently. Buy this tourist-use asset, sign the management agreement and invoice the management company for your property cession, and you become a VAT-registered economic operator. The full 21% is refundable by AEAT within 6–12 months.

Residential PropertyTourist ApartmentVAT rate on acquisition10% (reduced, new build)21% (standard, tertiary use)VAT on €500,000€50,000~€105,000VAT recoverable?✗ NO — permanent tax cost✓ YES — fully refundableNet VAT cost to buyer€50,000 lost permanently€0 (recovered in 6–12 months)VAT on furniture (€18–20K inc. IVA)~€3,124–3,471 — NOT recoverable~€3,124–3,471 — FULLY recoverableTotal tax advantage vs residential—€50,000 non-recoverable IVA saved + furniture IVA fully recovered

Important: The 21% IVA on acquisition is recoverable in proportion to the months the apartment is operated as a tourist rental. Months in which you use the property personally constitute personal use of a dwelling — the IVA attributable to those months is not recoverable. Your Spanish asesor fiscal will calculate the exact annual proration based on the ratio of rental days to total days in the calendar year.

Tax and legal matters should be confirmed with your own qualified Spanish advisors (abogado + asesor fiscal).

Resale Value — Why Tourist Properties Command a Premium

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1. Structural Scarcity

Tourist-use apartments represent <1% of new-build supply on the Costa Blanca and Costa Cálida. New licences in coastal municipalities are increasingly restricted or suspended. This development belongs to a scarcer, regulated asset class that commands a resale premium over equivalent residential m².

2. Accreditable Income Track Record

When you sell, you can show up to 10 years of audited rental income from the management company. Buyers see exactly what the apartment earned, month by month. Income transparency consistently delivers faster sales and higher prices than undocumented properties.

3. VAT Benefit Passes to the Next Buyer

A buyer continuing the tourist activity can also recover 21% VAT on the acquisition. In contrast, residential resale buyers pay 10% ITP (non-recoverable). This expands your pool of motivated investors and supports a higher net price at exit.

Management — Completely Hands-Free

The development operates under a 10-year Tourist Rental Management Agreement with a specialist management company — the direct operator of the hospitality business, contracting with guests in its own name and absorbing all operating risk and cost.

What the 50% management fee covers:

• Guest assistance and reception
• All booking platform commissions (Airbnb, Booking.com, etc.)
• Dynamic pricing and revenue management
• Full turnover and in-stay cleaning
• Linen, laundry and guest amenities
• Day-to-day maintenance and repairs
• Water, electricity, internet and common areas
• Professional liability insurance (building coverage)
• Digital marketing and direct channel management

Your annual owner costs:

CostAmountIBI (property tax)~€950 / yearWaste / municipal levy~€180 / yearTotal~€1,130 / year

Everything else — utilities, maintenance, cleaning, internet, alarm, insurance — is covered by the operator's fee.

Payment Schedule & Legal Framework

Payment Stages

StageAmountReservation€6,000 (credited to price)Private purchase contract30% of price + 21% VATConstruction milestone20% of price + 21% VATBalance at public deedRemaining 50% + VAT — Summer 2028

Construction-period payments are protected by an insurance guarantee under Spanish Law 38/1999 (LOE). A dedicated developer escrow account (cuenta específica del promotor) has been opened — buyer deposits are ring-fenced and guaranteed from day one.

The Income Guarantee — Three Levels of Legal Enforceability

1. Private reservation contract
2. Bilateral private purchase contract
3. Public deed of sale (escritura pública) — notarised, Summer 2028. Gives the guarantee the status of a título ejecutivo — direct enforcement rights under Spanish civil procedure, without a full declaratory lawsuit.

Frequently Asked Questions

1. Is the €25,000 annual return really guaranteed?

Yes. The guarantee is a binding legal obligation incorporated into the public deed of sale (escritura pública), giving it the status of an executive title (título ejecutivo) under Spanish civil procedure. If the pooled income distributed to you in any given year falls short of €25,000 net, the management company makes up the difference entirely at its own cost — with no recourse to you. This applies for the first two years of the management agreement.

2. What happens after the first two years?

From year three onwards, your income reflects actual rental performance at competitive market rates, with no guaranteed floor. Based on the financial model and INE / AirDNA data for the Marina Baixa district, the base-case projection is €20,000–€22,000 net per year at 63–68% annual occupancy.

3. How does the 7-unit income pool work?

The seven pool apartments combine their gross lodging revenue each month. After deducting the 50% management fee, the net is divided into seven equal shares — one per owner. Your income does not depend on whether your specific unit was booked that week; it reflects the building's aggregate performance. The operator issues a detailed monthly statement and each owner invoices the management company for their share plus 21% IVA.

4. Can I use my apartment whenever I want?

Yes, for up to 120 days per year — the maximum permitted under Spanish tourist apartment regulations. You need to give 30 days' notice to block your calendar. Confirmed guest bookings cannot be cancelled for owner use. When you use your apartment personally, a market-rate compensation is distributed to the other six pool owners.

5. Is the 21% IVA fully recoverable?

The 21% IVA paid on acquisition is recoverable in proportion to the months the apartment is operated as a tourist rental. Months of personal use constitute personal use of a dwelling — the IVA attributable to those months is not recoverable. Your Spanish asesor fiscal will calculate the exact annual proration.

6. What are my annual fixed costs as an owner?

Your fixed annual outgoings are limited to IBI (approx. €950/year) and the municipal waste levy (approx. €180/year) — a total of approximately €1,130/year. All operating costs are covered by the 50% management fee.

7. What if I want to sell my apartment?

You can sell at any time. At resale you will have up to 10 years of audited monthly income statements from the management company, which materially increases buyer confidence and achievable price. Tourist-use apartments represent less than 1% of new-build supply on the Costa Blanca — structural scarcity supports long-term capital values.

8. Who handles maintenance and repairs?

The management company handles all day-to-day maintenance and repairs from its 50% operating fee. The building operates under a professional liability insurance policy covering structural and operational risks. You are not responsible for any repair bills or routine maintenance.

9. How does the tourist licence work?

Each apartment holds a perpetual tourist-use licence (licencia turística terciario) tied to the property, not to the owner. The licence is included with the apartment at purchase and transfers automatically with any future sale, provided the tourist rental activity continues. New tourist licences in consolidated coastal urban areas are increasingly difficult to obtain, underpinning the long-term scarcity premium of this asset class.

10. What legal protections do I have as an investor?

Your investment is protected at three levels: (1) a private reservation contract, (2) a bilateral private purchase agreement, and (3) the public deed of sale (escritura pública) — notarised. All three formally document the €25,000/year guaranteed net return. The escritura pública gives the guarantee the status of a título ejecutivo — meaning direct enforcement rights under Spanish civil procedure without a full declaratory lawsuit. Construction-period payments are additionally covered by an insurance guarantee under Law 38/1999 (LOE).

The information in this post is provided for informational purposes only. Financial projections are illustrative and not guaranteed beyond the contractual 24-month floor. Tax, legal and regulatory matters should be independently verified by the investor's own qualified advisors. Capital appreciation projections do not constitute a forecast or commitment.

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