Dutch interest in Spanish housing market reaches record high
The Spanish housing market is currently in a booming phase and more and more Dutch people are discovering the opportunities that this market has to offer. With nearly 4,300 home purchases in Spain last year, Dutch buyers' interest in Spanish real estate reached a record high. Several factors, such as favourable tax arrangements and attractive prices, play an important role in this growth. Financial service provider Van Loon is ready to inspire and support its clients in exploring the Spanish market. Read on to learn more about this emerging trend and how Van Loon can help finance a home in Spain.
Tax benefits and attractive prices
The increase in the number of Dutch home purchases in Spain can partly be attributed to the recent increase in property taxes in the Netherlands. Owning a second home in Spain now offers additional benefits, as the value of the Spanish holiday home is deducted from the assets in Box 3, resulting in a reduction in the capital return tax in the Netherlands. This tax advantage makes owning a holiday home in Spain attractive for Dutch buyers.
In addition to the tax benefits, the prices of Spanish homes are also attractive for Dutch people. Compared to prices in the Netherlands, you get “more value for money” in Spain. For example, a three-bedroom villa in Alicante with a swimming pool and a spacious garden can be purchased for €280,000. These kinds of favourable prices encourage Dutch people to consider a second home in Spain.
Shift to younger buyers
Remarkable is the shift towards increasingly younger Dutch buyers who decide to buy a home in Spain. People under 45 are no longer waiting until retirement to buy a property in Spain, instead choosing to enjoy a working vacation in the country. Especially since the coronavirus pandemic, in which remote work is increasingly accepted, this trend has intensified.
Popular regions and funding options
Most Dutch buyers focus on the Alicante region on the Costa Blanca, where 39% of them purchase a home. The Costa del Sol, near Málaga, is the second popular region with 26% of purchases. Other popular areas include Murcia, Barcelona and the Canary Islands. For Dutch buyers who need financing, Van Loon offers various options to help them obtain a mortgage for a home in Spain.
Conclusion
With a record number of Dutch home purchases in Spain, interest in the Spanish real estate market is growing steadily. Favourable tax arrangements, attractive prices and the ability to work remotely contribute to this emerging trend. Van Loon is ready to support Dutch buyers in exploring and financing a home in Spain. If the trend continues, we can expect more and more Dutch people to take the plunge and enjoy the Spanish lifestyle.