The Dutch and Box 3

In the Netherlands a second home falls under box 3, where you pay tax on your assets based on a (often high) notional return, regardless of what your investment actually yields.

This means you pay tax even when the actual return is lower. With property in particular this can work out badly, because the tax burden does not match reality.

With property abroad, such as in Spain, the situation is different.

Tax advantages of property in Spain

A property in Spain is in principle taxed in the country where the property is located. The Netherlands grants an exemption to prevent double taxation.

In practice, this means:

• In many cases no box 3 levy on Spanish property in the Netherlands
• Tax is levied in Spain, often at more favourable rates and with clear structures
• When letting, tax is levied on actual income, not on a notional figure
• On a sale a flat rate normally applies (around 19%) on the realised gain

Why more and more investors choose Spain

Because of the growing tax burden in the Netherlands and changes to box 3, more and more Dutch investors are opting for property abroad.

The combination of:

• Tax optimisation
• Direct rental income
• Long-term capital growth
• And a tangible investment

makes Spanish property a strategically attractive choice.

Our role

We guide you not only through the purchase but also towards the optimal tax structure, so that your investment performs to the full, today and in the long run.