Mid-term rentals as an investment strategy in Marbella

When it comes to renting out real estate on the Costa del Sol, most investors picture two classic options: short-term vacation rentals for holidaymakers, or long-term rentals for a year or more. However, in 2026, a third, intermediate format is gaining increasing popularity: mid-term rentals. This means renting a home for a period of a few months up to a year, aimed at remote workers, relocating families, and specialists on temporary assignments. Against the backdrop of tighter rules for vacation rentals and the rise of a new type of tenant, this strategy becomes especially attractive for investors in Marbella.

In this article, we will look at what mid-term rentals are, why they are gaining momentum, what their advantages are, and how to approach this strategy.

What mid-term rentals are

Mid-term rentals, also called a hybrid model, are renting furnished housing for a period of about three to eleven months. They sit between the two familiar formats.

Short-term vacation rentals are rentals for days and weeks for holidaymakers. They generate higher gross income during the season, but require a tourist license, active management, frequent guest turnover, and depend on seasonality.

Long-term rentals are rentals for one year or more to permanent residents. They provide stability and low operating costs, but offer less flexibility and usually lower returns.

Mid-term rentals combine features of both formats. They do not fall under vacation rental rules because they are not marketed as tourist accommodation and are agreed for a longer period. At the same time, they keep flexibility and, as a rule, bring higher income than classic one-year long-term rentals.

Why this strategy is gaining momentum

Two key factors drive the growing popularity of mid-term rentals.

Tighter vacation rental rules. Starting in April 2025, short-term rentals in multi-unit buildings require approval from the owners’ community, and a number of municipalities on the Costa del Sol temporarily froze the issuance of new tourist licenses in saturated areas. As a result, some properties cannot physically be used for vacation rentals. These changes push many investors toward mid- and long-term strategies that do not require a tourist license and offer more predictable returns.

A new tenant profile. At the same time, demand has grown from a completely new audience. Remote workers and digital nomads who need sun, reliable internet, and comfortable housing for several months. Relocating families who rent while they are looking for a home or waiting for their own house purchase to be completed. Specialists on temporary assignments and corporate clients. People who come for a long winter, escaping the harsh winters in the north. All of them are looking specifically for mid-term rentals: longer than a vacation, but without the commitment of a year-long contract.

Marbella, with its mild climate, developed infrastructure, and status as one of the centers for remote work, is ideally suited to this audience.

Advantages of mid-term rentals

For an investor, the mid-term model offers a number of tangible benefits.

No tourist license. Since the rental is not a tourist rental, it does not require obtaining a license and does not fall under municipal restrictions on short-term rentals. This removes one of the main regulatory barriers and makes the strategy available even where new tourist licenses are no longer issued.

Higher income than with year-long rentals. Furnished housing rented for several months usually brings a higher monthly rate than classic one-year long-term rentals. The tenant pays a premium for flexibility, move-in ready housing, and the absence of long-term obligations.

Less day-to-day workload than with vacation rentals. Compared to short-term rentals, tenant turnover is much less frequent here, there are fewer cleanings, lower management costs, and a lower risk of vacancies between stays. One tenant for several months is clearly less hassle than a stream of tourists.

Flexibility in use. The mid-term model allows the owner to maintain control over the property: for example, freeing it up for a specific period for personal use or switching strategies depending on the season and demand.

A higher-quality tenant profile. Remote professionals, relocating families, and corporate clients are typically a reliable and solvent audience, which reduces risks compared to some other segments.

Reduced seasonal risk. Demand for mid-term rentals exists year-round, not only during the high vacation season, which smooths out income fluctuations.

Legal protection for mid-term rentals

An important practical point concerns legal status. Mid-term rentals in Spain are regulated flexibly, but they require careful contract preparation.

The key nuance is to ensure the contract is correctly drafted specifically as a rental for a defined term for a specific purpose, not as the tenant’s permanent residence. The correct legal classification determines the scope of rights and obligations of the parties, as well as the ability to recover the property within the agreed timeframe. That is why it is worth preparing a mid-term rental contract with a lawyer to avoid ambiguity.

It is also worth remembering that the new law on protecting property owners from illegal occupation, which came into force in 2025, strengthened owners’ positions, and thorough tenant screening remains a reasonable practice under any rental strategy.

Profitability and the economics of the strategy

Let’s look at the economic side. Gross rental yield on the Costa del Sol is generally in the range of about 5% to 7%. Short-term vacation rentals can generate higher gross income, but they also require higher management expenses.

A key point that is often overlooked: it is not gross, but net yield that matters. After deducting management commissions, non-resident income tax, the municipal property tax, contributions to the owners’ community, insurance, maintenance, and a realistic accounting of vacancies, net yield can differ significantly from gross yield.

This is where mid-term rentals often come out ahead. A higher monthly rate than with year-long rentals, combined with lower operating costs than with vacation rentals, and fewer vacancies, can produce attractive net yield with less burden on the owner. In many cases, the annual net return from a well-organized mid-term or long-term rental is comparable to vacation rentals, and sometimes even higher after accounting for all expenses and hassles.

Also keep in mind the tax side: rental income must be declared, and special tax rules apply to non-residents. These issues are best discussed with a tax advisor.

What type of property is suitable

Not every property is equally good for mid-term rentals. The following characteristics are most in demand with this audience.

Move-in readiness. Fully furnished and equipped housing where you can move in with a suitcase is a key requirement for mid-term tenants.

Quality and comfort. Modern apartments and villas with good finishes, quality appliances, and well-thought-out space are valued higher.

Reliable internet and a workspace. For remote workers, this is critical. Having a home office or a convenient work area is a serious advantage.

On-site infrastructure. A pool, a gym, wellness areas, co-working spaces, and the security of a gated community make the property more attractive for longer stays.

A good location. Proximity to the beach, restaurants, everyday services, and good connections to the airport increase demand. Many areas of Marbella and the coastline are well suited to this strategy.

How to approach the strategy

If we put everything together, mid-term rentals are a sensible and increasingly in-demand strategy for real estate investors in Marbella, especially amid tighter vacation rental rules and the growth in the number of remote workers and relocating families.

A practical approach comes down to a few steps. Choose a quality property that is ready for move-in, in a good location with reliable connectivity and attractive infrastructure. It is important to properly draft the contract with the help of a lawyer to ensure legal protection. It is useful to calculate net, not gross, income in advance, taking all expenses into account. And, if needed, it makes sense to involve a professional property management company that will handle tenant search, paperwork, and ongoing service.

With this approach, mid-term rentals can provide an attractive balance of income, flexibility, and low operating workload, while staying away from the regulatory complexities of vacation rentals.

The ABARZO team helps investors select property in Marbella based on the rental strategy and will suggest trusted specialists in property management and legal support. A complete real estate catalog in Marbella is available on our website.

Please note that this material is for general information purposes only and does not constitute legal, tax, or investment advice. Rental and tax rules change and depend on the specific situation, so you should always confirm the details with qualified professionals.

ABARZO Real Estate — Your guide to real estate and Marbella lifestyle