Investing in real estate in Benissa: tax advantages for Dutch buyers compared to the Netherlands

More and more Dutch investors are looking for alternatives outside the Netherlands. The increased tax burden, especially through the Box 3 system, coupled with stricter regulations and declining net returns, has made property investment in the Netherlands less attractive to many individuals.

For this reason, many Dutch buyers choose to invest in real estate in Spain, and in particular in Benissa and the Costa Blanca North. Not only because of the climate and quality of life, but above all because of the tax advantages compared to the Dutch system.

As an independent real estate agent and local specialist active in Benissa, Calpe, Moraira, Teulada, Benitachell and Javea, I advise Dutch buyers who want to invest in Spain in a safe, clear and tax-efficient way on a daily basis.

In this article I explain how real estate taxation works in Spain for Dutch citizens and why Benissa is a solid alternative to investing in the Netherlands.

Property taxation in the Netherlands: the Box 3 system

In the Netherlands, a second home or investment property is taxed under Box 3 (wealth tax).

Key features of the Box 3:

Taxation on a fictitious income
Not based on actual rental income
It does not allow you to deduct maintenance or management costs
It is paid annually, even if the property does not generate income

In practice, the investor pays taxes on a profit that may not exist.

Example of a real estate investment in the Netherlands

Property value: 450.000 €
Taxable assets: €450,000
Estimated fictitious return: 6%
Fictitious deposit: €27,000

Approximate tax (36%):
€9,700 per year, regardless of actual performance.

Real estate taxation in Spain for non-resident Dutch buyers

Spain applies a completely different system. Dutch citizens who buy a home in Spain as non-residents are only taxed on real income.

Spain does not apply a system equivalent to Box 3

In Spain there is no tax on fictitious income in the real estate sector.

It is only taxed if there is real rental income
If not rented, the tax is minimal and fixed
The investor knows in advance his tax burden

For many Dutch buyers, this difference is a huge advantage.

Annual Property Tax (IBI) in Benissa

IBI is the municipal property tax in Spain.

Guiding values in Benissa:

Apartment: between 300 € and 600 € per year
Villa: between €600 and €1,200 per year

The IBI is calculated on the cadastral value, which is usually significantly lower than the market value.

Tax for non-rented (non-resident) homes

If the Dutch landlord does not rent out his property in Spain, he must pay a small imputed tax.

Features:

Based on cadastral value
Typically between €150 and €400 per year
Fixed and predictable amount

This tax is not comparable to the Dutch Box 3

Rental income tax in Spain

When a Dutch buyer rents out their property in Benissa:

Fixed tax rate of 19% (EU citizens)
Taxation on net profit, not gross income

Most common deductible expenses:

Maintenance and repairs
Rental management and administration
Insurance
Community Fees
Mortgage interest
Supplies during rental
Cleaning and marketing
Tax or accounting advisor fees

Example of a rental in Benissa

Annual rental income: €30,000
Annual expenses: 10,000 €
Net profit: €20,000

Tax (19%): 3.800 €
Net profit after tax: €16,200

Wealth tax in Spain for Dutch buyers

Spain has a wealth tax, although with high exempt minimums and regional differences.

In practice:

Exemption of approximately €700,000 per person
Many non-resident buyers fall below the threshold
Frequent result: no wealth tax is paid

Capital gains tax when selling a property in Spain

In Spain, the tax is applied only on the actual gain made on the sale.

Progressive rate between 19% and 28%
Only on the real profit
Purchase, notary and renovation expenses are deductible

In the Netherlands, wealth is taxed annually, even unsold.

Net return on investing in Benissa: a realistic example

Villa purchase price: 500.000 €
Annual rental income: €32,000
Annual expenses: 11,000 €

Net profit: 21,000 €
Tax (19%): €3,990

Final net profit: 17,010 €
Approximate net return: 3.4%, excluding revaluation.

Why Dutch buyers choose Benissa

Benissa offers:

High rental demand
Lower entrance prices than Javea or Moraira
Limited urban development
Long rental season
Strong demand from buyers and tenants from Northern Europe

This makes Benissa one of the most interesting areas to invest in on the Costa Blanca North.

Buying a property in Spain: key points for Dutch people

Before investing, it is important to:

Apply for the NIE number
Open a Spanish bank account
Define the use and rental strategy
Have local tax advice
Analyse the tax situation in the Netherlands
Verify rental licenses

Frequently asked questions about investing in Spain

Is housing in Spain taxed in the Dutch Box 3?
No. Real estate located in Spain is taxed in accordance with Spanish law.

Do I have to pay taxes if I don't rent the property?
Yes, but it is a reduced and fixed imputed tax.

Is investing in Spain more fiscally advantageous than in the Netherlands?
In many cases yes, especially due to the absence of taxation on fictitious income.

Do I pay taxes in two countries?
Spain and the Netherlands have a double taxation avoidance agreement, although each case must be analysed individually.

Personalised advice for Dutch buyers in Benissa

Every investor has a different situation. If you want to know:

What your actual tax burden will be
What Net Return You Can Expect
Which area best suits your goals

I accompany Dutch buyers locally in Benissa, Calpe, Moraira, Teulada, Benitachell and Jávea, from the first contact until after the signing before a notary.

The first consultation is always without obligation.

Legal and tax notice

The information contained in this article is for informational purposes only and does not constitute legal, tax or financial advice. Tax regulations may change and depend on the personal situation of each investor. It is recommended to always consult with a qualified tax advisor in Spain and/or the Netherlands. No rights are derived from this content.