Dutch buyers are now the fastest-growing group in the Spanish property market, and in 2025 they overtook both Germans and Britons to become the largest by number of purchases. If you are buying from the Netherlands, you are in a genuinely strong position: as an EU citizen you can live in Spain without a visa, you earn in euros so there is no currency risk, and Spanish banks treat Dutch applicants as low risk. This guide covers how a Spanish mortgage works for Dutch buyers, whether to borrow or pay cash, what it costs, and the tax points that catch people out.
Foxes is an independent mortgage and legal firm based on the Costa del Sol, registered with the Bank of Spain (register number D470). We arrange Spanish mortgages and handle the legal side for international buyers, and we work with Dutch clients regularly. This is the honest version, including where a mortgage is not the right call.
How much can a Dutch buyer borrow in Spain?
For non-residents, Spanish banks lend against the property, not against your life back home, and they cap how much they will lend. As an EU citizen you sit in the better band.
- Loan to value: 60% to 70%. EU buyers, Dutch included, generally get 60% to 70% of the purchase price, the top of the non-resident range. Non-EU buyers are usually held to 50% to 60%.
- Deposit: 30% to 40%, plus around 10% to 14% of the price again for taxes and costs, which the bank will not finance. More on those costs below.
- Income: as a rough guide, banks look for solid, provable income, often in the region of 2,500 euros net a month for a single applicant or around 4,000 euros combined for a couple. Your exact figure depends on the property and your outgoings.
- The 40% rule. This is the one that catches people. Spanish banks cap your total monthly debt, the new Spanish mortgage plus everything you already pay at home, at 40% of your net monthly income. A Dutch mortgage on your home in Utrecht or a car lease counts against that ceiling.
Two things make Dutch applications smoother than most. Your documents are EU-standard, so no apostille or sworn translation hoops, which speeds approval. And because you earn in euros, your income is taken at full value: banks scale back foreign-currency income to guard against exchange-rate swings, but a euro salary needs no such reduction. A euro in is a euro assessed.
Should you take a Spanish mortgage or pay cash?
About four in five Dutch buyers currently pay cash. For many that is simply habit, or the assumption that a mortgage as a foreigner is more trouble than it is worth. It is worth considering, because a euro mortgage can be the smarter move even when you could pay cash.
- You keep your capital. Putting 30% or 40% down and borrowing the rest leaves the balance invested or liquid, rather than tied up in bricks. With Spanish rates where they are, the maths often favours keeping your money working.
- No currency risk to manage. This is the Dutch advantage again. A euro mortgage against a euro-priced home, serviced from euro income, has no exchange exposure at any point.
- A Spanish bank checks the property. The lender’s valuation and legal checks are a second set of eyes on what you are buying, useful on a purchase you may be doing partly at a distance.
What does not usually work is a mortgage from home. Dutch banks such as ING, Rabobank and ABN AMRO do not lend against Spanish property. The realistic routes are a Spanish mortgage, or releasing equity on your Dutch home and buying in Spain with cash. Which is cheaper depends on the rates on each side, and it is exactly the sort of comparison we run for clients before they decide.
The EU citizen advantage
As a Dutch citizen you have one of the strongest positions of any foreign buyer in Spain, and it is easy to underrate just how much it is worth. As an EU citizen you have freedom of movement: no 90 in 180 day limit, no visa, no non-lucrative or digital nomad visa to qualify for. You can spend as long in your Spanish home as you like, and becoming a Spanish resident, if you choose to, is a registration process rather than an immigration application.
That also feeds into your mortgage. Residents borrow more (up to 80% loan to value) and often at better rates than non-residents. Many Dutch buyers start as non-residents and, if they end up spending more than half the year in Spain, move to resident status, which can improve both their borrowing and their tax position. You have that option open in a way non-EU buyers do not.
What are the taxes and costs on a Spanish purchase?
Purchase taxes in Spain are set regionally, so where you buy matters. Plan for roughly 10% to 13% of the price on top, made up of:
- Transfer tax (ITP) on a resale home, which varies by region: around 7% on the Costa del Sol (Andalusia), 6% in Madrid, and up to 10% on the Costa Blanca (Valencia region). Worth checking before you settle on an area, because on a similar price the difference between regions is meaningful.
- Or, on a new build, 10% IVA (VAT) plus about 1.5% AJD stamp duty, roughly 11.5% together.
- Notary, land registry and legal fees, typically another 1% to 2%.
One quirk to know: the tax is charged on the higher of your purchase price or the property’s official cadastral reference value, and it is due within 30 days of signing at the notary. Buyers who budget only for the headline price are the ones who get a nasty surprise at completion.
What will the property cost you each year?
Beyond the one-off purchase costs, a Spanish home carries a few predictable annual costs. None is large on its own, but budget for all of them.
- IBI (council tax). The local property tax, set by the town hall on the cadastral value. On a typical coastal home expect a few hundred euros a year, more on a larger villa.
- Non-resident income tax (modelo 210). This is the one Dutch buyers rarely see coming. Even if you never rent the property out, Spain charges a small annual tax on it as a non-resident, on a notional “imputed income”. It is worked out on 1.1% to 2% of the cadastral value, and as an EU resident you pay 19% of that figure, which usually comes to a few hundred euros a year. If you do let the property, you pay 19% on the actual net rental income instead, with costs deductible.
- Community fees. If you buy an apartment or a home on a complex or urbanisation, you pay into the community of owners for shared upkeep such as the pool, gardens and lifts. This ranges from modest to significant depending on the facilities.
- Utilities, insurance and refuse. Standard running costs, plus a small annual rubbish collection charge from the town hall.
We set out the likely annual figure for a specific property before you commit, so nothing lands as a surprise after completion.
Where Dutch buyers are buying
Dutch demand is concentrated, which is useful to know. The Costa Blanca is the heartland: Javea is the single most searched destination for Dutch buyers, with Moraira, Calpe and Denia along the northern Costa Blanca, and Torrevieja and the southern stretch popular too. The Costa del Sol, where we are based, is the other major draw. Dutch buyers tend to favour resale properties and larger homes with outdoor space. Our eligibility check and mortgage calculator work for any region, and if you are still weighing up areas, our location finder is a good start.
How the buying process works
The Spanish purchase follows a well worn path, but it runs differently from buying in the Netherlands: several parties are involved, the deposit is binding, and completion happens before a notary. In short, you line up an NIE (your Spanish tax ID) and a Spanish bank account, reserve the property to take it off the market, your lawyer runs the due diligence on ownership and any debts, you sign the arras contract (paying around 10%, binding on both sides), and finally sign the deed at the notary and collect the keys. From an agreed offer to keys is usually eight to twelve weeks.
The single most important point for a Dutch buyer: never sign the arras and pay the 10% before your mortgage is confirmed and the legal checks are clear, or you risk losing the deposit if the loan falls through. Because we run the mortgage and the legal side together, those two never get out of step. We can also complete the whole purchase remotely under a power of attorney, so you do not have to fly down for each appointment.
Our purchase process guide walks through every stage, cost and document in detail.
What about tax back in the Netherlands?
A quick note, because it matters and because it is genuinely nuanced. Under the Netherlands-Spain tax treaty you should not be taxed twice on your Spanish home: you pay the Spanish property taxes, and the Netherlands gives you an exemption in box 3 for the Spanish portion. The catch is that the exemption is not automatic, you have to declare the property correctly on your Dutch return to claim it. If you rent the property out, Spain taxes the net rental income at 19% for EU residents, with expenses deductible.
This is real tax-adviser territory, not something to take from a web page, and the coming Dutch box 3 reform makes it more so. We are not tax advisers, but because we handle the legal side of the purchase in house, we make sure the pieces line up and can point you to the right specialist.
Wills and inheritance for Dutch owners
Two things are worth sorting once you own in Spain.
First, make a Spanish will covering your Spanish assets. It is not compulsory, but it makes matters far simpler and quicker for your family. Without one, they have to work through the Dutch estate and have documents translated and recognised in Spain, which is slow and costly at a hard time. A Spanish will sits alongside your Dutch one and deals only with the Spanish property.
Second, choose which country’s law applies. Under the EU succession rules (known as Brussels IV), your estate is settled by default under the law of the country where you are living when you die. As a Dutch national you can instead elect for Dutch law to govern your estate, and your Spanish will is the place to state that clearly, so your wishes are followed rather than Spanish forced-heirship rules.
On tax, the picture is better than its reputation. Since 2015 non-residents are taxed on the same terms as residents, and the popular coastal regions are generous to close family: in both the Valencia region (the Costa Blanca) and Andalusia (the Costa del Sol), spouses and children benefit from very large reliefs and often pay little or no inheritance tax on a family home. The return is due within six months of death. This is a specialist area, and we can draft the Spanish will as part of the legal service and point you to the right tax adviser.
Healthcare in Spain as a Dutch owner
While you are still living in the Netherlands and using the property as a second home, your Dutch EHIC covers emergency and necessary treatment during your stays. It does not cover planned treatment or repatriation, so a private or travel policy on top is sensible.
If you move to Spain and become resident, your EU status gives you clear routes into the Spanish public health system. If you draw a Dutch state pension, an S1 form transfers your healthcare entitlement to Spain at no extra cost. If you are not yet a pensioner and not working in Spain, you can pay into the public system through the convenio especial (around 60 euros a month under 65, more above it) once you have been registered locally for a year, or take private cover, which runs from roughly 50 to 200 euros a month and gives fast access with English-speaking doctors. Many buyers keep private insurance for the speed even when they also qualify for the public system.
How Foxes helps Dutch buyers
Most brokers stop at the mortgage. We arrange the Spanish mortgage and handle the conveyancing, the NIE numbers, and the purchase itself, under one Bank of Spain regulated roof. For Dutch buyers doing part of this from the Netherlands, that matters: we can run the whole purchase remotely through a power of attorney, so you do not need to fly down for every appointment. One regulated team, mortgage and legal together, is something no estate agent portal offers.
What to do next
Our eligibility check asks the questions a Spanish bank actually asks and takes about 60 seconds, then tells you where you stand: what you could borrow, on what terms, and whether a euro mortgage beats paying cash in your case.
Check your eligibility in 60 seconds
No documents, no phone call, and nobody chases you afterwards unless you ask.
Frequently asked questions
Can Dutch citizens get a mortgage in Spain?
Yes, and as EU citizens Dutch buyers get the best non-resident terms: typically 60% to 70% loan to value, standardised EU documents with no apostille, and no currency discount on euro income. You will need a deposit of 30% to 40% plus about 10% to 14% for taxes and costs.
Do Dutch banks like ING or Rabobank lend on Spanish property?
No. Dutch high-street banks do not mortgage property in Spain. Your realistic options are a Spanish mortgage or releasing equity on your Dutch home and buying with cash. We can compare the two for your situation.
Do I need a visa or residency to buy in Spain as a Dutch citizen?
No. As an EU citizen you have freedom of movement, so no visa and no 90 in 180 day limit on time spent in your Spanish home. If you later choose to become resident, that improves your borrowing (up to 80% loan to value) and can help your tax position.
How much are the taxes when buying in Spain?
Budget 10% to 13% of the price on top. Transfer tax (ITP) on a resale is set regionally: around 7% on the Costa del Sol (Andalusia), 6% in Madrid, and up to 10% on the Costa Blanca (Valencia). A new build is 10% VAT plus about 1.5% stamp duty instead. Notary, registry and legal fees add another 1% to 2%.
Should I pay cash or take a Spanish mortgage?
About 79% of Dutch buyers pay cash, but a euro mortgage often makes sense even if you can pay cash: you keep your capital working, there is no currency risk on a euro loan against a euro home, and the bank’s checks are a second set of eyes on the purchase. We run the comparison before you commit.
Will I pay Dutch tax on my Spanish home?
The Netherlands-Spain tax treaty is designed to stop you being taxed twice: you pay Spanish property taxes and claim a box 3 exemption in the Netherlands, but only if you declare the property correctly. Rental income is taxed in Spain at 19% for EU residents. Speak to a tax adviser about your own position; we make sure the purchase side is set up correctly.
What will I pay each year to own a home in Spain?
Budget for IBI (council tax), community fees if the property is on a complex, utilities and insurance, and the non-resident income tax (modelo 210). Even if you never rent it out, Spain charges a small annual imputed-income tax: 19% for EU residents on 1.1% to 2% of the cadastral value, usually a few hundred euros a year. If you let the property, you pay 19% on the net rental income instead.
Should I make a Spanish will?
It is not required, but it is strongly recommended. A Spanish will covering only your Spanish property makes inheritance far faster and cheaper for your family, and lets you elect for Dutch law to apply under the EU succession rules. Since 2015 non-residents are taxed like residents, and close family enjoy large reliefs in both the Valencia and Andalusia regions.
This page is general information, not financial, tax or legal advice, and not a credit decision. Whether any bank lends, and on what terms, depends on its own assessment of your circumstances. Tax treatment depends on your personal situation and can change. Foxes is an independent credit intermediary registered with the Bank of Spain (register number D470). We are not a lender. Our broker fee is only due if and when a bank issues a formal mortgage offer; the eligibility check is free.
