The real return is what you have left once you take the platform commission, cleaning, management and the property's fixed costs (service charges, IBI property tax, utilities, insurance, maintenance) away from what guests pay, before or after tax depending on how you calculate it. Looking only at occupancy or only at the nightly price leads to the wrong conclusions.
In short
- Start with what the guest pays and work down: platform, cleaning, management, fixed costs.
- ADR is the average price per night sold; occupancy, the percentage of nights sold; RevPAR, what the property earns per available night.
- RevPAR is the best figure for comparing two pricing strategies.
- Tax depends on your personal situation: check with your tax adviser.
From what the guest pays to what you keep
We use the same example as on our fees page: a 7-night booking at €120 per night, with €80 cleaning and a 16.3% platform commission. The actual commission depends on each platform and its terms; here it is only an example.
| Item | Amount |
|---|---|
| 7 nights × €120 | €840.00 |
| Cleaning (paid by the guest) | €80.00 |
| Total paid by the guest | €920.00 |
| Platform commission (16.3%) | −€149.96 |
| Cleaning | −€80.00 |
| Management base | €690.04 |
| Canarias Prime Homes management (20% of the base) | −€138.01 |
| To the owner, before the property's running costs and tax | €552.03 |
From that amount you still have to deduct the property's own costs, which you pay whether you have bookings or not.
Costs to take into account
The property's fixed costs
- Homeowners' association service charge.
- IBI (local property tax) and municipal charges, such as refuse collection.
- Electricity, water, gas and internet. In a holiday home the guests use them, but you pay for them.
- Home insurance suitable for holiday letting.
- Mortgage, if you have one: the interest affects your financial return.
Costs linked to the letting
- Each platform's commission (Booking.com, Airbnb or others).
- Management, if you hand it over.
- Replacements: kitchenware, towels, bed linen, small appliances.
- Maintenance and repairs: air conditioning, painting, the pool if there is one.
- Amenities and consumables, depending on what you offer guests.
In our experience, the cost that most surprises new owners is replacements: a home with many arrivals a year wears out textiles and kitchenware much faster than a home someone lives in.
ADR, occupancy and RevPAR explained
- ADR (average daily rate): accommodation revenue divided by the nights sold.
- Occupancy: nights sold divided by the nights available. If you block dates to use the property yourself, they don't count as available.
- RevPAR (revenue per available night): accommodation revenue divided by the nights available. It's the same as ADR × occupancy.
RevPAR shows straight away why high occupancy isn't always better. A home that sells 25 nights at €90 (€2,250) in a 30-night month has a RevPAR of €75. Another that sells 20 nights at €125 (€2,500) has a RevPAR of €83: lower occupancy, more income and less wear and tear.
Work out your figures
To see how much you would keep with our management, use the income calculator on the home page. To compare with a long-term let, read holiday or long-term let.
What about tax?
Income from a holiday home is taxable, and the calculation depends on whether you are resident in Spain, whether it's your only property, deductible expenses and other factors. Our monthly statement gives you the details of bookings, income and costs so your tax adviser has an easy job. If you don't live in Spain, start with our guide for owners who live abroad.
General information, updated on 5 October 2026. It is not a substitute for advice from a tax adviser.
Sources and notes
- Sample statement: Canarias Prime Homes fees and terms.
- The figures in the ADR and RevPAR examples are illustrative, not data from real homes.