Taxes for Dutch Buyers Buying Property in Spain (Costa del Sol)

Important — read first. This is general information, not personalised legal or tax advice. The figures below are the rates and thresholds in force as at the review date (28 July 2026); Spanish taxes are set partly at regional and municipal level and change every fiscal year, and the Spain–Netherlands tax treaty is being renegotiated. Nothing here is a recommendation for your situation. Before signing anything or filing, confirm the current figures and your own position with a registered Spanish tax adviser (asesor fiscal) or a colegiado lawyer, and with a Dutch adviser for the Box 3 side.

TL;DR: A Dutch tax resident buying property on the Costa del Sol (Andalusia) generally pays a one-off Spanish purchase tax of 7% ITP on a resale or 11.2% on a new-build (10% VAT + 1.2% AJD stamp duty) [1][2]. Each year the owner files a Spanish non-resident return (IRNR, Modelo 210) and separately reports the property in Box 3 of the Dutch return, where relief stops the same asset being taxed twice [3][4][5]. On sale, Spain taxes the gain at 19%, and the buyer withholds 3% of the sale price as an advance payment [3]. The Spain–Netherlands double taxation treaty gives Spain the first right to tax the property and obliges the Netherlands to grant relief [4].

This guide covers the taxes payable in Spain — at purchase, annually, and at sale — and how they interact with Dutch obligations, for non-resident buyers who are tax residents of the Netherlands purchasing in Andalusia (which includes the Costa del Sol).

Purchase taxes: new-build vs. resale in Andalusia

The largest one-off cost at purchase is the transfer/indirect tax, and the rate depends on whether the property is new or a resale.

• New-build (bought from a developer) carries two taxes [2]: VAT (IVA), a national tax generally set at 10% of the price for new residential property, plus Stamp Duty (AJD — Actos Jurídicos Documentados), a regional tax in Andalusia of 1.2% [1][2]. Total: 11.2%.
• Resale (bought from a private owner) carries no VAT. Instead the buyer pays Property Transfer Tax (ITP — Impuesto de Transmisiones Patrimoniales), a flat 7% in Andalusia — among the more competitive rates in Spain [1][2]. (Reduced ITP rates exist for habitual residence / young buyers under conditions that typically do not apply to a non-resident second home.)

Ongoing annual taxes

A non-resident owner is generally liable for two annual Spanish taxes, even if the property is never rented out.

• Local Property Tax (IBI — Impuesto sobre Bienes Inmuebles): a municipal tax paid annually to the town hall (Ayuntamiento), based on the property’s cadastral value (valor catastral). The rate is set by each municipality and for urban property typically falls in the 0.4%–1.1% range [1].
• Non-Resident Income Tax (IRNR — Impuesto sobre la Renta de no Residentes): filed on Modelo 210 under one of two scenarios [3]:
  1. Imputed income (own use, not rented): a notional income of 1.1% of the cadastral value (or 2% if the value has not been revised in the last 10 years), taxed at a flat 19% for EU/EEA residents. For imputed income the return may be filed throughout the year following the tax year (up to 31 December) [3].
  2. Rental income: as an EU/EEA resident, taxed at 19% on the net profit, deducting eligible expenses (e.g. mortgage interest, IBI, community fees, insurance, maintenance) [3].

Spanish wealth taxes

• Wealth Tax (Impuesto sobre el Patrimonio): for non-residents it applies only to Spanish assets. There is a personal tax-free allowance of €700,000, and Andalusia applies a 100% relief (bonificación), so the amount payable to the region is generally reduced to zero [2][3]. An informational return (Modelo 714) may still be required where the value of assets exceeds €2 million [3].
• Solidarity Tax on Large Fortunes (ITSGF): a state tax on net wealth above €3 million (Spanish assets, for non-residents); any regional wealth tax paid is credited against it [3]. Below that threshold, no ITSGF is due.

Selling the property

• Capital Gains Tax: for an EU/EEA resident the gain (sale price minus acquisition price and associated costs) is taxed at a flat 19%, declared on Modelo 210 [3]. The seller’s filing period is three months counted from the end of the one-month period the buyer has to pay the retention — i.e. broadly four months from the sale [3].
• 3% retention (retención): when a non-resident sells, the buyer must withhold 3% of the sale price and pay it to the Agencia Tributaria via Modelo 211 (within one month of the sale) [3]. This is not the final tax but an advance on the gain; if it exceeds the tax due (e.g. a loss), the difference can be reclaimed via Modelo 210 [3].
• Plusvalía Municipal (IIVTNU): a local tax on the increase in value of the urban land, payable by the seller to the town hall. The calculation method was reformed in 2021, and where no gain in land value arose the tax may not be due [1].

The Dutch layer: avoiding double taxation

A Dutch tax resident reports worldwide assets, including Spanish property; the treaty prevents the same asset being taxed in both countries.

• The treaty: it gives Spain the primary right to tax income and gains from real estate located in Spain (immovable-property and capital-gains articles) and obliges the Netherlands to grant relief [4]. Note: Spain and the Netherlands have agreed a renegotiated convention (presented to the Spanish Council of Ministers in March 2026); until it completes ratification and enters into force, the 1971 convention (in force since 1972) remains the applicable text — confirm the current status with an adviser.
• Box 3 reporting: the Spanish property is declared in Box 3 of the annual Dutch return (aangifte inkomstenbelasting) at its 1 January value. For 2026, real estate falls under ‘other assets’ (overige bezittingen) with a deemed return of 6.00%, taxed at a flat 36% [5].
• Relief via exemption: the Netherlands grants an exemption (aftrek ter voorkoming van dubbele belasting) for the Box 3 tax attributable to the Spanish property, claimed in the Dutch return [4][5]. The value still counts towards total wealth and applicable brackets (“exemption with progression”), but Dutch Box 3 tax is not levied on the Spanish portion.

Typical sequence for a Dutch buyer

1. Obtain a NIE (Número de Identificación de Extranjero), the tax ID required to buy, bank, and file taxes in Spain [3], and open a Spanish bank account.
2. Pay the purchase taxes within two months from the day after signing the deed (escritura; for taxable events on or after 1 January 2022): new-build → VAT to the developer plus AJD (Modelo 601); resale → ITP (Modelo 600) [1][2].
3. Register the deed at the Registro de la Propiedad (Land Registry).
4. File annual Spanish taxes — IBI to the town hall, and IRNR (Modelo 210) [3].
5. Report in the Netherlands — declare the property (and any mortgage) in Box 3 and claim the foreign-real-estate exemption [4][5].

FAQ

Is Spanish rental income taxed in the Netherlands or in Spain? Primarily in Spain: the treaty gives Spain the first right to tax income from property on Spanish territory [4]. An EU/EEA resident pays 19% on net rental income via Modelo 210 [3]; it is still reported in the Netherlands, where the treaty exemption prevents it being taxed again [4].

Is wealth tax due in both countries? Reported in both, but double taxation is prevented. In Spain, Andalusia’s 100% relief generally means nothing is payable regionally unless net Spanish assets exceed €3 million (triggering the state ITSGF) [2][3]. In the Netherlands the property is reported in Box 3 but a treaty exemption removes it from the taxable base [4][5].

Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice, nor a recommendation for any individual. Tax rates, thresholds and forms change by fiscal year and by municipality, and a renegotiated Spain–Netherlands treaty is pending entry into force. Figures are stated as at the review date, 28 July 2026. Always consult a qualified, registered tax adviser (asesor fiscal) or a colegiado lawyer to confirm the rules for your specific situation before making any financial decision. eVoost accepts no liability for reliance on this general information.

Sources:

1. Agencia Tributaria de Andalucía (Junta de Andalucía) — ITP y AJD, and Andalusian ceded taxes — https://www.juntadeandalucia.es/agenciatributariadeandalucia
2. Boletín Oficial del Estado (BOE) — Ley 5/2021, de 20 de octubre, de Tributos Cedidos de la Comunidad Autónoma de Andalucía (ITP/AJD rates; 100% wealth-tax relief) — https://www.boe.es/buscar/act.php?id=BOE-A-2021-17915
3. Agencia Tributaria (AEAT) — No residentes: IRNR, Modelo 210, retención en la adquisición de inmuebles (Modelo 211), Patrimonio e ITSGF — https://sede.agenciatributaria.gob.es/Sede/no-residentes.html
4. Boletín Oficial del Estado (BOE) — Instrumento de Ratificación del Convenio entre España y el Reino de los Países Bajos para evitar la doble imposición (firmado 16-jun-1971, ratificado 1972) — https://www.boe.es/buscar/doc.php?id=BOE-A-1972-1469
5. Belastingdienst (Dutch Tax Administration) — 2e woning (vakantiewoning) in box 3 — https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/wat_zijn_uw_bezittingen_en_schulden/uw_bezittingen/2e_woning