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): 15 to 25 percent of gross to a manager, or ~€4,000–8,000 per season as a flat fee.
- Pool maintenance (if applicable): €800–1,500 per year.
- Garden: €400–1,200 per year depending on size.
Platform costs
- Booking / Airbnb: 3 to 15 percent commission depending on the platform model.
Net calculation on three examples
Three real property types from the Bespoke portfolio, each in two scenarios: one with a property manager on the ground (20–25% commission), one self-managed if you're here yourself or have a trusted person locally. The difference is large and gets brushed under the rug in most calculations.
All figures calculated without purchase-price growth. That's the trick brochures use to make the numbers look nice. Growth is possible, but it doesn't survive honest scrutiny as an income component.
Example 1 · T2 village house, Aljezur Vila, move-in ready, 6 beds
Acquisition: Purchase price €300k + 10% closing costs (€30k) = €330k total investment. No renovation assumed (property move-in ready).
Gross annual income: €20k (mid-range of €15–25k). Occupancy ~75% summer, ~20% winter.
Annual costs:
- IMI, insurance, AL fees, bookkeeping, maintenance reserve (1.5% of purchase price): ~€7,500
- Electricity + water + internet, cleaning + linen (~25 changeovers), garden: ~€4,500
- Platform commission (Booking / Airbnb, ~10%): €2,000
- Property manager 20%: €4,000
Scenario A — with property manager: €20,000 gross − €18,000 costs = €2,000 net before tax. After 28% PT tax: ~€1,400. → ~0.4% net yield on €330k total investment. It carries itself, but it's not a yield story.
Scenario B — self-managed on the ground: Without the property-manager margin, those €4,000 stay in. €20,000 − €14,000 = €6,000 net before tax. After tax: ~€4,300. → ~1.3% net yield on €330k. Realistic case for buyers who live here themselves or have a trusted person locally.
Cash comparison: €330k at 3% fixed = €9,900 gross, ~€7,300 net after Portuguese capital-gains tax = 2.2% real return after inflation. The village house doesn't beat cash on pure yield logic, but you're not only buying yield. You're buying use, place and an asset with appreciation potential.
Example 2 · T3 villa Arrifana with pool and sea view, 8 beds
Acquisition: Purchase price €800k + 10% closing costs (€80k) = €880k total investment. AL licence in place and transferable (prerequisite for this calculation).
Gross annual income: €45k (mid-range of €35–55k). Occupancy ~90% summer, ~30% winter.
Annual costs:
- IMI, insurance, AL fees, bookkeeping, maintenance reserve (1.5% of purchase price): ~€15,500
- Electricity + water + internet, cleaning + linen (~45 changeovers), pool + garden: ~€8,000
- Platform commission (Booking / Airbnb, ~8%): €3,600
- Property manager 25%: €11,250
Scenario A — with property manager: €45,000 gross − €38,350 costs = €6,650 net before tax. After 28% PT tax: ~€4,800. → ~0.5% net yield on €880k. With good occupancy and active marketing, the upper range (€55k gross instead of €45k) is achievable. That lifts the yield to ~1.0–1.2%.
Scenario B — self-managed on the ground: The €11,250 management margin stays with the house. €45,000 − €27,100 = €17,900 net before tax. After tax: ~€12,900. → ~1.5% net yield on €880k. At the upper gross range (€55k) and with active marketing: 2.5–3% net is realistic. The often-quoted 4–6% only works if you additionally leave the maintenance reserve out or don't count your own labour as a cost. Neither passes an honest test.
Cash comparison: €880k at 3% fixed = €26,400 gross, ~€19,400 net after tax = 2.2% real return after inflation. A self-managed villa with active marketing slightly beats cash on the numbers alone — plus the own-use option and appreciation potential.
Example 3 · T2 holiday apartment, Rogil, simply furnished, 4 beds
Acquisition: Purchase price €220k + 10% closing costs (€22k) = €242k total investment.
Gross annual income: €14k (mid-range of €10–18k). Occupancy ~60% summer, ~15% winter. Distance from the beach.
Annual costs:
- IMI, insurance, AL fees, bookkeeping, maintenance reserve (1.5% of purchase price): ~€5,500
- Electricity + water + internet, cleaning + linen (~20 changeovers), garden: ~€3,500
- Platform commission (Booking / Airbnb, ~10%): €1,400
- Property manager 20%: €2,800
Scenario A — with property manager: €14,000 gross − €13,200 costs = €800 net before tax. After 28% PT tax: ~€580. → ~0.2% net yield on €242k. Honest statement: as a pure yield object with a property manager, this doesn't compute. The purchase has to be justified differently — own use, second home, capital preservation.
Scenario B — self-managed on the ground: Without the management margin: €14,000 − €10,400 = €3,600 net before tax. After tax: ~€2,600. → ~1.1% net yield on €242k. No yield miracle, but costs are covered and the flat pays for itself.
Cash comparison: €242k at 3% fixed = €7,260 gross, ~€5,400 net after tax = 2.2% real return after inflation. Rogil as a pure investment doesn't beat cash. As a second home with partial rental to cover costs: sensible.
Summary of the three calculations
With a property manager, all three properties land between 0.2% and 1.2% net yield. Self-managed between 1.1% and ~3% (the villa at the upper range). If you want to buy Aljezur purely as a yield investment, you'll find better numbers in Frankfurt or Berlin. If you price in use, location and long-term value and cover part of the cost through rental, you can build a solid calculation — as long as the expectation is realistic.
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.
If you want a real calculation for your property:
If you have a specific property in mind, or you want to know what a particular area / property type realistically returns, write me. I'll run an honest cover-your-costs calculation on your numbers. No brochure gloss.