Taxes and Returns: The Advantages of a Second Home in Marbella, Spain in 2024 compared to the Netherlands.

Hello everyone,

Here is Pauline Mulder, your real estate expert and real estate agent in Marbella. Today I would like to share with you the advantages of buying a second home in Marbella, Spain in the year 2024 compared to the Netherlands.

First:
Marbella housing market: Prices rising in 2024 and high quality new construction.
The forecast for the year 2024 is that prices in Marbella and the surrounding area will continue to rise steadily. The demand for homes in Marbella and the surrounding area is still higher than supply. The quality of new-build homes in Marbella is so high that it shows significant differences compared to existing construction. In addition, new construction projects are equipped with amenities such as swimming pools, a gym, work spaces, an indoor pool and a spa, which are generally lacking in existing communities. Also read a real estate report here 

Marbella Property Market Report 2023 (panoramamarbella.com)

Tax treaty between the Netherlands and Spain and no wealth tax in the province of Andalusia.
In both countries there are tax aspects that you need to take into account when buying a second home. In the Netherlands, for example, you pay wealth tax on the value of the home in box 3. In Spain, property tax and municipal taxes come into play. However, it is essential to know that the Netherlands and Spain have a tax treaty, which means that your second home in Spain is not subject to additional tax in the Netherlands. You enter the home in box 3, stating approximately the same amount as a deductible item. In the Netherlands you actually pay no extra tax, while in Spain you can expect around €1,200 in taxes. The mentioned €1,200 in taxes in Spain mainly consists of the IBI (Impuesto sobre Bienes Inmuebles) and municipal taxes. The IBI is comparable to the property tax in the Netherlands and is calculated based on the cadastral value of the home. Municipal taxes vary by region and are used for local amenities. It therefore offers a significant tax advantage through the abolition of wealth tax for owning a home in Spain.

Improved Returns: Discover the Benefits of Home Rental in Spain through New Rules in the Netherlands.
If you choose not to use your second home all year round, it is also possible to rent it out. This can generate significant additional income. In 2024 there will be new rules for renting out houses in the Netherlands, but the good news is that these rules do not apply in Spain. That makes it extra interesting to buy and rent real estate in Spain. In the Netherlands, the rules are being introduced to stabilize the rental market and protect tenants, but in Spain the situation remains unchanged. This offers property investors an attractive opportunity to benefit from the favorable conditions in Marbella without the new restrictions in force in the Netherlands. Plus the high season in Marbella is long due to the climate, June to September, which means that you can rent in good locations and depending on the size and value of your apartment or villa between 3000-10,000 euros per week.

In short, there are some important tax considerations and potential benefits to owning a second home in Spain. However, it is always advisable to seek advice from a tax specialist, because I am not a tax specialist and this only concerns the basic rules. Every situation is unique and professional advice can help determine the most beneficial approach for your specific circumstances.

Do you have questions or are you considering a purchase? I am always ready to advise and guide you. Please feel free to contact me for more information.

See you next time!

Pauline Mulder

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