The Dutch Wave

The Netherlands is currently one of the fastest growing sources of property demand in Spain, rapidly climbing the ranks of foreign buyers. This surge is not accidental; it is driven by powerful financial and cultural shifts happening back home, pushing both seasoned investors and young professionals toward the Spanish coastline.

The Dutch are flooding the Spanish property market, and it’s not just for the sun. People from the Netherlands are now the second-largest foreign property buyers in Malaga Province (home to the Costa del Sol), accounting for 11% of all foreign transactions, second only to the British.

In Alicante Province, which includes the Costa Blanca, Dutch buyers have overtaken the British to become the top foreign nationality purchasing property, according to official data from Spanish notaries.

But Why Now?

I asked Dutch national and Real Estate Personal Shopper Daniella van Steenwijk. Daniella believes this property surge is driven by 3 factors taking place in the Netherlands:

1 The Investor Exodus – The primary engine for this increase is a major shake-up in Dutch tax law.

In the Netherlands, tax regulations place a high burden on investment assets, specifically second properties. This increase in the extreme high tax on non-primary residences has caused many Dutch investors to re-evaluate their portfolios. They are liquidating assets in the Netherlands and moving capital abroad to countries where they benefit from different tax environments. This shifting of funds makes Spanish property, which offers both investment potential and a lifestyle benefit, an attractive alternative.

2. Leveraging High Home Equity – The second key factor is the Dutch housing market’s extreme growth, especially for older homeowners. The baby boomer generation, who often paid off their mortgages decades ago, hold vast equity in their homes. For many, the value of their property is now multiple times what they purchased it for.

This capital appreciation allows homeowners to either sell their property or leverage its high value. They can use this significant pool of released equity to purchase a property in Spain outright, making the process of buying a new home in the Costa del Sol simpler and more accessible.

3. The Remote Work Lifestyle – A third factor drives demand from younger buyers: the post-pandemic shift toward remote work.

This generation is prioritizing life balance and has become more conscious about where and how they live. They can now work from a city like Estepona just as easily as they can work from Rotterdam. This freedom allows them to choose a location based on climate and quality of life.

The accessibility is significant. Málaga Airport provides international connections to Dutch cities like Amsterdam and Eindhoven. The flight time is comparable to the time it takes to drive between major cities within the Netherlands during peak traffic hours. This ease of travel removes geographical barriers, cementing Spain as a practical choice for long-term living or extended remote work.

What Dutch Buyers Prefer

Dutch buyers tend to favour resale properties, though demand for modern, new build homes is also strong. Unlike some other nationalities, Dutch buyers prioritize larger properties. They often seek homes greater than 100 square meters. Furthermore, Dutch buyers are often cash buyers; while some obtain Spanish mortgages, many are funding their purchases directly using the capital released from their highly valued homes in the Netherlands.