Coastal Concession Calculator

Asking price

€380,000

What the seller is asking

Estimated annual rent income

€40,000

Gross rent you could charge per year

Years left on concession

20 years

Check with MITECO

Estimated demolition cost

€9,000

Site clearance cost at end of concession

Your expected annual yield on investment

6.0%

The annual return you want on your money — 6% is a typical target for this type of property

Fair max price — concession — —

Total investment — concession — —

You recover your money in — —

Comparable freehold price — What equivalent freehold properties in the market may cost

Total investment — freehold — —

You save vs freehold — by buying the concession instead

—

Concession value (decays to zero) Rent collected (forecast, IPC 2%/yr) Total investment to recover

Calculator assumptions

Net income multiplier k = 0.62, reflecting typical running costs of a rental property
Annual state canon (MITECO fee) estimated at 5% of gross annual rent
Rental income growth (IPC) estimated at 2% per year
Comparable freehold market price estimated at 20× gross annual rent, based on typical Costa Blanca coastal property multiples
Purchase taxes and costs estimated at 12% of purchase price for both concession and freehold scenarios
Demolition and site restoration cost entered manually by the user
This calculator is for indicative purposes only and does not constitute financial or legal advice