Mortgage in Spain for Dutch buyers

The Spain-Netherlands Double Tax Convention (1971, published in Spain’s BOE on 16 October 1972) governs how income, capital gains and wealth are taxed between both countries, and it is still the one in force. A new convention was initialled on 17 December 2021 and Spain’s Council of Ministers authorised its signature on 10 March 2026; Spain’s Finance Ministry does not list it as signed yet, and it will only apply once both parliaments ratify it.

If you remain Dutch tax resident (less than 183 days/year in Spain):

• IRNR (Spanish non-resident tax): 19% on imputed income (1.1% of the cadastral value if it was revised in the previous 10 years, 2% otherwise) for every year the home is not rented (Non-Residents’ Income Tax Law arts. 24.5 and 25.1; IRPF Law art. 85)
• If rented: 19% on net rental income; as an EU resident you can deduct expenses such as mortgage interest, IBI, community fees, insurance and repairs (art. 24.6)
• Salary for work done in the Netherlands: taxed in the Netherlands; pensions follow the treaty rule for each type of pension
• Box 3 declaration: Spanish property reported in your IB return at market value (waarde in het economisch verkeer); debts go in Box 3 under the Belastingdienst’s rules
• Capital gains on sale: Spain taxes 19% and the buyer withholds 3% of the price on account (art. 25.2); the Netherlands relieves double taxation under the treaty

If you become Spanish tax resident (>183 days/year):

• Worldwide income subject to Spanish IRPF, on the State scale plus your region’s scale
• Dutch pension reportable in Spain with treaty relief
• Modelo 720 required if your assets abroad exceed €50k in any of its categories
• Special regime for people moving to Spain for work ("Beckham Law", art. 93 of the IRPF Law): 24% on Spanish-source income other than savings up to €600,000 (47% above), for the year you move and the next five, if you were not resident in the previous five years

Action point: consult both a Dutch tax advisor (for Box 3 and pension impact) and a Spanish gestor (for IRNR/ITP). Box 3 values assets on 1 January, so check with your advisor which year the Spanish property first appears.

The Dutch Box 3 (Inkomen uit sparen en beleggen) taxes savings and investments, including real estate in the Netherlands or abroad. If you are Dutch tax resident, your Spanish property enters Box 3 alongside your Dutch savings and investments.

How it works:

• Asset value: for property abroad, the Belastingdienst asks for its market value (waarde in het economisch verkeer) on 1 January, not a WOZ value
• Mortgage liability: declared as a Box 3 debt under the Belastingdienst’s rules
• Double taxation: you can claim relief so you are not taxed twice on the same income
• Tax rate: set each year by the Belastingdienst; the Box 3 rules are being reformed, so check the current year

Practical tip: keep your Spanish bank statements, mortgage statement and IBI receipts for each tax year. Your Dutch tax advisor will need them to size Box 3 correctly and apply any treaty credit.