The claim, up front
Aljezur is not a yield miracle. But it's also not the black hole some ex-Aljezur buyers describe when their model didn't work out. If you know the numbers before you buy, you can make a sound decision. If you only work them out afterwards, you'll be annoyed.
What's on this page — and what's not
On this page: Realistic gross income per season, the costs that actually hit, a net calculation for three concrete example properties, and the points where investment cases typically go wrong.
Deliberately not on this page: No "yields up to X percent" claims. No growth projections. No "before prices go up" rhetoric. That's where investment content turns into marketing copy. Not here.
What Aljezur grosses — by property type
Ranges based on aggregated market observation and the Bespoke portfolio. Summer means May to September, winter October to April.
| Property type | Gross annual income | Summer occupancy | Winter occupancy |
|---|---|---|---|
| T2 village house, Aljezur Vila · 6 beds, move-in ready | €15–25k | ~70–85% | 15–30% |
| T3 villa, Arrifana, sea view · 8 beds, with pool | €35–55k | ~85–95% | 25–40% |
| T2 holiday apartment, Rogil · 4 beds, simply furnished | €10–18k | ~55–70% | 10–20% |
What actually gets deducted — the cost reality
Before you calculate a yield, walk through this list. All positions come round every year, regardless of how full or empty the house was.
Fixed costs
- IMI (annual property tax): 0.3 to 0.45 percent of the tax value. On a €300k purchase, roughly €500–1,200 per year.
- AL licence fees + registration: €100–300 per year, depending on the municipality.
- Insurance (building + rental liability): €400–900 per year.
- Baseline maintenance (a reserve, not an actual annual outflow): 1 to 2 percent of the purchase price.
- Bookkeeping / Portuguese tax accountant: €600–1,200 per year for clean reporting.
Operating costs (scale with occupancy)
- Electricity + water + internet: €1,500–3,000 per year in holiday-rental operation.
- Cleaning (end-of-stay): typically €40–80 per changeover.
- Linen service: €30–60 per changeover.
- Property management (if you're not on the ground yourself): market range in Aljezur is 25 to 40 percent of gross, with around 33 percent as a realistic middle. Some managers work on a flat-fee model instead.
- Pool maintenance (if applicable): €800–1,500 per year.
- Garden: €400–1,200 per year depending on size.
Platform costs
- Booking / Airbnb: around 15 percent commission.
What a realistic net yield looks like
Once you subtract all the costs above from the gross ranges further up, most Aljezur properties land somewhere between 1 and 3 percent net yield on total investment. Self-managed on the ground, with an AL licence and active marketing, the upper end of that band is achievable. With a manager on the ground and average marketing, the lower end is honest.
Anyone quoting 4 to 6 percent net for Aljezur is usually leaving out the maintenance reserve, ignoring their own labour as a cost, or baking price growth into the yield. None of that passes an honest test.
Every property is different, though. Location, condition, licence status, occupancy, cost base — the spread between two properties on the same street can be significant. Which is why I don't put speculative sample calculations on this page. If you want real numbers, we look at them together.
Want to run the numbers on a specific property?
If you have a property in mind, or you want to know what a particular area or property type realistically returns, book a call. We'll go through your numbers together, honestly. No brochure gloss, no rushed pitch.
Where investment cases typically go wrong
These are the points where I see expectations diverge from reality most often. Know them and you can price them in:
- Occupancy as a single number instead of a range. Brochures use 85 percent occupancy year-round. Reality is 80 percent summer, 25 percent winter, averaged 55 percent. That's a 30-percent shift in the maths.
- Purchase-price growth as part of the yield. Price growth is possible, but uncertain. Baking it into the yield calculation is selling hope as income.
- Own use not deducted. If you use it 8 weeks a year yourself, those are 8 weeks of lost rental income. Take it out or the yield is misleading.
- Bookkeeping, tax accountant, legal advice ignored. Not a rounding error. In a tax audit it gets expensive.
- No renovation reserve. In 5 years a new kitchen. In 8, a new bathroom. In 10, the roof. If you don't reserve 1 to 2 percent of the purchase price per year, you'll hit an unplanned big bill.
- Operating wear-and-tear underestimated. Holiday homes run harder than owner-occupied ones. Washing machines last 3 years instead of 8, furniture 4 instead of 10.
The honest point: who Aljezur works for as an investment, and who it doesn't
Works well for
- Buyers with a long horizon (10+ years) who want to use Aljezur partly themselves and rent partly. Net income covers costs and property tax, appreciation is a bonus.
- Buyers who acquire a villa with an AL licence in a strong coastal location, manage it themselves or through a trusted person on the ground and market it actively. 2 to 3 percent net yield on total investment is realistic, plus own use, plus appreciation potential.
- Buyers who don't frame the purchase as a pure investment, but as a life plan with a rental component.
Works less well for
- Buyers on a pure yield hunt. There are more efficient markets for that.
- Buyers speculating purely on price growth. The market has matured, big jumps are less likely than 10 years ago.
- Buyers who want to operate without a local partner. Remote management works less well in Aljezur than in urban rental markets.
Get an honest read on your case
Rather than guessing from a sample calculation, let's look at your actual property, area and plan together. 30 minutes, no pitch.