The Spanish housing market remains attractive, certainly for Dutch buyers. It is getting pretty busy with Dutch people here on the northern Costa Blanca. Go to yoga, a sound bath or a meditation session and there are usually 1 or 2 people who don't speak Dutch. Fairly bizarre, isn't it? Because our own rules have changed and covid taught us we can work remotely too, more and more Dutch people are choosing a home or a second home on the northern Costa Blanca.
Contents
- The Beckham Law: a tax break for incoming professionals
- Tax plans for non-EU buyers: transfer tax of up to 20%?
- The Golden Visa has been scrapped: what now?
- Tax trends 2025–2030: heavier burdens for the wealthy
- New rules on letting and empty homes
- Political proposals: limits on home buying by foreigners?
- Prepare properly for buying a house or starting a new life in the sun
But if you are serious about investing, moving or running a business in Spain, you need to be well up on the latest rules and developments. Think of tax breaks like the Beckham Law, but also of the tighter rules around renting, empty properties and visas. In this in-depth blog we share current insights to help you decide with your eyes open. Quietly, quite a lot comes at you when you are planning to move to Spain.
The Beckham Law: a tax break for incoming professionals
The Beckham Law is a Spanish tax break for expats.
Say you move to Spain for work. Under certain conditions you can then choose to be treated for tax purposes as a non-resident taxpayer for the first six years. That means you don't pay progressive Spanish income tax (which can run up to 45% or even 47%), but a flat, favourable rate of 24% on the employment income you earn in Spain up to €600.000. Earn more than that? Anything above it is taxed at 47%, but everything below stays at that flat rate of 24%.
For comparison: ordinary Spanish residents land in the higher bands at relatively modest incomes — from €60.000 you are already in the top band. Spanish income tax (IRPF) starts at 19% and climbs quickly through several steps to 30%, 37% and finally 45% or even 47%. So the Beckham Law can deliver a substantial tax saving, especially on an annual salary above €60.000.
Who is the scheme meant for?
The Beckham Law is primarily aimed at foreign professionals who move to Spain for work or for an appointment within a company. Think of employees with a new Spanish employment contract, people posted here by an international company, or board members (directors, for instance) of a Spanish company, even if you are a (co-)shareholder yourself.
Since 2023 certain digital nomads, entrepreneurs and family members moving with the applicant can also benefit, provided they meet the conditions.
Key conditions
You must not have been a Spanish tax resident in the past five years. You are moving to Spain because of work or an appointment. You file the application within six months of starting work. Your work takes place largely in Spain, with a maximum of 15% elsewhere. And you must not be self-employed with a local Spanish business (autonomo, the Spanish sole trader)
Meet those conditions and get your application approved? Then you have the favourable rate for a maximum of six years: the year you arrive plus five more.
What is and isn't taxed?
Spanish employment income is taxed at 24% up to €600.000. Foreign assets or income are in principle exempt from Spanish tax, as long as you don't carry out the work from Spain.
One important point to watch: what if you work from Spain for your Dutch BV or your freelance clients? The Spanish tax authorities may take the view that this income is earned in Spain and therefore taxable here after all. In a case like that, a tax analysis by a specialist really is needed.
The advantages of the Beckham Law
You benefit from a low flat tax rate on employment income from Spain. You pay no tax on foreign assets or passive income such as savings or dividends. And you owe no Spanish wealth tax on assets held abroad.
That makes the scheme comparable to the Dutch 30% ruling for expats and particularly attractive to knowledge workers, managers, specialists and entrepreneurs coming to live and work in Spain for a while.
Limitations and points to watch
You can't make use of the tax reliefs that ordinary residents do get, such as certain deductions or exemptions. Income from Spanish property, from letting or selling a home for instance, is taxed separately, often at 19 to 24%. Your tax status can affect tax treaties with the Netherlands and therefore your ability to offset tax. And while the scheme runs you may not run your own business in Spain.
For most expats who are employed or who have themselves appointed as a director of their own SL, though, the scheme offers considerable advantages. Bringing family members with you has also been made easier recently. Subject to conditions, they can piggyback on the scheme.
Watch out: you have to file the application on time and correctly. Gusto Casa Spanje is happy to put you in touch with specialist tax advisers who will guide you through the process and make sure you get the most out of the tax benefits.
Tax plans for non-EU buyers: transfer tax of up to 20%?
The Spanish government is considering doubling transfer tax (ITP) for non-EU buyers from an average of 10% to 20%. Everywhere you read about an increase to 100%. That really would have been drastic. It is an increase of 100%. The proposal is part of a broader strategy to protect the housing market against foreign speculation.
Who does this hit?
- Non-EU buyers such as the British, Americans, Moroccans, Chinese, Russians and Canadians.
What does this mean for Dutch buyers?
Dutch buyers are EU residents. They are not covered by this measure. But the measure can certainly affect the dynamics of the market:
- Less competition from third countries;
- Potentially more room to negotiate for EU buyers;
- Less upward pressure on prices in the luxury segment.
Fact: In Alicante, foreigners already make up 44% of the buyer market. A tax rise for part of that group has an effect. Non-EU nationals buy mainly in the higher (luxury) segment.
The Golden Visa has been scrapped: what now?
Until April 2025, non-EU nationals could obtain a residence permit by investing at least €500.000 in Spanish property. That scheme has now been abolished.
Why?
- To curb speculation and property inflation.
- Because it delivered hardly any extra economic value.
Alternatives for non-EU nationals:
- Non-lucrative visa (NLV): no work allowed, but you do need capital or passive income.
- Digital Nomad Visa: valid for remote workers who generate their income outside Spain.
- Entrepreneur visa: for investment in a Spanish business that creates jobs.
For EU nationals like the Dutch nothing changes: you have the right to free establishment.
Tax trends 2025–2030: heavier burdens for the wealthy
The Spanish government is phasing in changes that mainly affect higher incomes and larger fortunes.
National level
- The solidarity levy on wealth above €3 million stays in place.
- Capital gains tax rises to 30% on gains above €300.000.
- Top earners pay up to 47% tax.
Regional: Comunidad Valenciana (incl. Costa Blanca)
- The wealth tax exemption has been raised to €1 million (plus €300.000 for your own home).
- Inheritance tax has been almost entirely abolished between parents and children.
Result: anyone who becomes resident in Valencia can gift, bequeath or hold on to wealth on favourable tax terms.
New rules on letting and empty homes
With the new housing act of 2023, the government has gained more control over rents and empty properties.
Rent controls
- In a so-called 'zona tensionada' the annual rent increase is capped at 3% (2024).
- New contracts have to line up with the previous rent.
The Valencia region designates few areas as 'tense or stressed'. So on the Costa Blanca the impact is limited for now.
Tax breaks for social letting
If you own a property in Spain and let it at a lower rent, you may qualify for attractive tax reductions. The scheme is designed to encourage letting in so-called 'stressed areas', which are regions with a shortage of affordable rental housing.
Depending on your situation, several benefits are possible:
- If you cut the rent by at least 5% compared with the previous tenancy, then in a stressed area you can get up to 90% tax relief on your rental income.
- Letting to tenants aged 18 to 35 in such an area? Then the reduction is 70%.
- Have you renovated or improved the property before letting it out? Then you can get a 60% reduction.
- Simply letting in Spain, outside a stressed area and without meeting any specific conditions? Then a basic relief of 50% always applies.
Watch out: you can only choose one of these tax benefits, depending on which situation applies to your letting. So they can't be combined. That means it can be tax-efficient to keep the rent a little lower. It works like a kind of subsidy.
Empty properties and second homes
Municipalities are allowed to raise the IBI on homes standing empty (>2 years), particularly where someone owns several (4 or more) properties.
Stricter rules for large landlords
Own 5 or more homes and you can be classed as a 'large landlord', with extra obligations.
Political proposals: limits on home buying by foreigners?
In March 2025 a bill was tabled to restrict home buying by foreigners to people who have lived in Spain for at least 5 years. That proposal has not been passed yet, but it does show a political trend.
For EU nationals, restrictions like that are legally very difficult because of the free movement of people and goods within the EU. Within the EU we are not allowed to discriminate. Even so, it pays to follow developments closely.
What does all of this mean in practice for you as a Dutch buyer?
As a Dutch buyer you start from a strong position:
- Freedom to settle and to buy in Spain
- No extra transfer taxes to contend with
- The chance to optimise your tax position through the Beckham Law or regional benefits
- Less international competition from non-EU countries, which creates opportunities
Are you planning to:
- Work in Spain for a while?
- Buy a home to let out or to use yourself?
- Start a business?
Then it is essential to act on good information. Get help from local specialists who understand the laws and procedures and who also know the Dutch side of things. We have a few names for you.
Prepare properly for buying a house or starting a new life in the sun
The Spanish housing market is still very much on the move. Prices rose by no less than 16% last year. We are wondering ourselves whether we shouldn't buy something new soon. Because that rise is bigger than in the Netherlands. New laws and tax schemes call for up-to-date knowledge and careful planning. As a buyer or a business owner you can turn that to your advantage. But do get proper advice. We have written before about other tax benefits and restrictions. Do you own a lot of property in the Netherlands? Then look into whether any schemes might apply.
At Gusto Casa Spanje we are on hand with clear explanations, expert guidance and access to local specialists. We make sure you don't just buy a property, but also keep a grip on the tax, legal and practical side of things.
Do you fancy a good investment, a lovely holiday home or a beautiful house to live in yourself? Great, we'd be glad to help you as your Dutch buying agent on the Costa Blanca.
