Short-Term vs Long-Term Rentals: Which Strategy Wins in Europe

If you are investing in the EU's - there’s two ways to make rent money.

Through regular, long-term renting or either through short-term renting.

While Airbnb-style rentals have exploded in popularity, they’re not always the best option—especially with tightening regulations and rising operational costs.

At the same time, long-term rentals offer predictability but may struggle to keep up with inflation or compete with alternative yield-focused investments.

If you're investing in Europe, this guide will help you decide where short-term or long-term makes more sense:

Head-to-Head: Key Metrics Compared

Long-Term Rent Yields in European Cities

• Ireland, Cork – 8.69%

• Latvia, Riga – 8.61%

• Moldova, Chisinau – 8.38%

• Italy, Turin – 8.34%

• Italy, Palermo – 8.29%

• Serbia, Belgrade – 8.25%

• United Kingdom, Liverpool – 8.10%

• Romania, Bucharest – 8.04%

• Spain, Barcelona – 7.51%

• Italy, Rome – 7.55%

• United Kingdom, Glasgow – 7.77%

• Italy, Naples – 7.41%

• Italy, Florence – 7.35%

• Netherlands, Rotterdam – 7.33%

• Ireland, Dublin – 6.83%

• Poland, Warsaw – 6.82%

• North Macedonia, Skopje – 6.71%

• Montenegro, Podgorica – 6.67%

• United Kingdom, Manchester – 6.65%

• Spain, Valencia – 6.19%

• Spain, Alicante – 5.86%

• Poland, Krakow – 5.75%

• Hungary, Budapest – 5.39%

• Italy, Milan – 5.44%

• Croatia, Zagreb – 5.57%

• Belgium, Brussels – 5.56%

• Portugal, Aveiro – 5.32%

• Russia, Moscow – 5.24%

• Portugal, Faro – 5.20%

• France, Marseille – 5.17%

• United Kingdom, London – 5.10%

• Belgium, Antwerp – 5.09%

• Montenegro, Budva – 5.08%

• Greece, Heraklion – 5.02%

• Netherlands, Amsterdam – 5.00%

• Greece, Athens – 4.99%

• Spain, Malaga – 4.99%

• Germany, Leipzig – 4.99%

• Iceland, Reykjavik – 4.88%

• Cyprus, Limassol – 4.85%

• France, Paris – 4.83%

• Spain, Madrid – 4.82%

• Cyprus, Nicosia – 4.78%

• Germany, Berlin – 4.76%

• Portugal, Porto – 4.76%

• Spain, Palma De Mallorca – 4.74%

• Spain, Marbella – 4.68%

• France, Nice – 4.66%

• France, Lyon – 4.63%

• Estonia, Tallinn – 4.46%

• Portugal, Lisbon – 4.45%

• Bulgaria, Sofia – 4.43%

• Sweden, Stockholm – 4.38%

• France, Toulouse – 4.39%

• Slovenia, Ljubljana – 4.34%

• Greece, Thessaloniki – 4.32%

• Cyprus, Paphos – 4.25%

• Austria, Vienna – 4.12%

• Slovakia, Bratislava – 4.08%

• Belgium, Mechelen – 3.95%

• Croatia, Split – 3.87%

• Czech Republic, Prague – 3.75%

• Norway, Oslo – 3.50%

• Germany, Frankfurt – 3.47%

• Germany, Hamburg – 2.85%

• Germany, Munich – 2.76%

• Switzerland, Zurich – 2.76%

• Belgium, Brugge – 2.74%

• Austria, Salzburg – 2.71%

• Luxembourg, Luxembourg City – 2.67%

Last updated: April 2025. For the latest long-term yields in Europe, click here.

Note: These are gross rental yields. To calculate net yields, you’ll need to deduct rental management and maintenance costs.

Below you can find average long-term rental yields in Europe countries:

Short-Term Rental Yields in Europe

Short-term rentals can work in Europe—but not in most places.

Many well-known tourist destinations are already heavily regulated, making it difficult to generate sustainable income. Think Paris, Barcelona, or Dublin.

However, there are still some areas where long-term rental markets have lagged, and short-term rentals can outperform them in terms of yield.

STRs tend to do best when:

• You’re in a tourist-heavy area with a long season (e.g. southern Spain, the Greek islands, or Portugal’s Algarve).

• Hotels are limited or don’t cater to certain groups (like families or remote workers).

• Local laws are STR-friendly—common in parts of Eastern Europe, the Balkans, or select smaller cities.

• The property is special: great views, historic charm, or prime walkability.

In these scenarios, net yields of 5%–6% are achievable—especially with professional management and year-round bookings.

Country-by-Country: STR vs. LTR Yields

Conclusion: Which Strategy Wins?

Every country, city, and neighborhood is unique, with its own advantages, trade-offs, and risks.

Short-term rentals (STRs) offer the potential for higher gross and net yields, especially in tourist hotspots with favorable regulations. However, they also require more active management, come with higher expenses, and face greater regulatory uncertainty—particularly in major cities where restrictions are increasing.

Long-term rentals, on the other hand, provide more stable and predictable income streams, lower operational demands, and are often the only viable option in highly regulated urban centers. While they may not deliver the same high returns as STRs in peak tourist markets, they offer peace of mind and consistent occupancy, especially in cities with strong expat or business tenant demand.

Ultimately, your decision should be shaped by your investment goals, risk tolerance, and how hands-on you want to be.

If you are interested in acquiring a short-term or long-term rental in Europe, feel free to contact us - [email protected] or +372 5555 1677.