With a strong international demand, limited housing supply, and high-season rental rates, renting out your villa in Ibiza can be a highly profitable investment — if done right. From legal requirements to real returns, this guide breaks down what every property owner and real estate investor should know.
Why Consider Renting Out Your Villa?
Ibiza isn’t just a lifestyle destination — it’s a high-demand holiday rental market with global appeal. Properties in prime locations can be rented for €6,000 to €25,000 per week during the summer season, making rental investment in Ibiza one of the most attractive in southern Europe.
1. Rental Demand in Ibiza: High and Consistent
The numbers speak for themselves:
- Average occupancy during peak months (June–September): 85–95%
- Luxury villas in top areas: Often booked 6–12 months in advance
- Mid-season and long-term rentals: Rising in demand due to remote workers and off-season tourism
The key? Location, licenses, and property quality.
2. What’s the ROI of a Holiday Rental Villa in Ibiza?
Depending on the villa’s size, location, and amenities, owners can expect:
| Property Type | Estimated Gross ROI |
| Standard 3-bed villa | 4–6% annually |
| High-end sea view villa | 7–9% annually |
| Boutique luxury estate | Up to 10–12% |
This doesn’t include potential property value appreciation, which has been steadily rising over the past decade.
3. Tourist Rental Licenses: What You Need to Know
To rent your villa legally for short stays, you must obtain a tourist rental license (ETV). Here are the essentials:
- Property must be detached (no apartments or townhouses)
- Minimum rental period: 5–7 days depending on municipality
- Tourist safety requirements: Includes insurance, signage, and energy certification
- License cost: Varies but typically €1,000–€3,000+ with annual renewals
Without the proper license, renting short-term is illegal and may result in heavy fines.
Need help? Our legal partners at Ibiza Country Villas can assist you with the entire application process.
4. Top Locations for Holiday Rental Success
Some areas consistently offer high occupancy rates and premium pricing:
- Talamanca & Cap Martinet: Proximity to Ibiza Town, modern villas
- San José (Sant Josep): Luxury beach villas near Cala Conta, Cala Tarida
- Santa Eulalia: Family-friendly with growing demand
- San Juan: Eco-villas and wellness retreats attract niche travelers
The more exclusive the area, the higher the rental income potential.
5. Full-Service Rental Management: Why It Matters
Managing bookings, guests, cleaning, and compliance can be a full-time job. That’s why most owners choose professional property management, which offers:
- Dynamic pricing to maximize revenue
- 24/7 guest communication and concierge services
- Maintenance and turnover management
- Legal and tax compliance
At Ibiza Country Villas, we offer tailored rental management solutions to ensure your villa generates returns without the stress.
Conclusion: A Smart, Profitable Move
Yes — renting out your villa in Ibiza is absolutely worth it. With proper licensing, professional management, and the right location, your property can deliver impressive returns while also appreciating in value.