Officers arrested the Dutchman at a bar in San Pedro on suspicion of ordering multiple murders in the Netherlands.
The 36-year-old is believed to be a prominent member of the outlawed Caloh Wagoh motorcycle club, considered a criminal organisation by Dutch police.
The fugitive had reportedly been living in a luxury house in Marbella with his pregnant wife and three children for several months.
A video of the arrest shows a man in a white polo top and flip flops being tackled to the ground and pinned by two cops.
The man is currently in prison pending extradition back to the Netherlands.
The operation had been coordinated by Spain’s Special Response Groups for Organized Crime, working closely with Dutch authorities on the ground in Malaga.
Caloh Wagoh is believed to have several hundred members, and like other illegal biker gangs, they use the Costa del Sol as a place to lie low.
The motorcycle gang has been linked to a string of attacks including one in June when a rocket launcher was fired at an Amsterdam office building.