Case report · Algarve

Apartment in Faro – Two countries, two incomes, one mortgage

A couple from Lower Saxony – she a doctor, he an industrial engineer – planned to move their centre of life fully to Portugal within the next four years. Both wanted to continue their professional work partly remotely until then and afterwards enjoy retirement on the Algarve.

In short

What was this case about?

A couple from Lower Saxony – she a doctor, he an industrial engineer – planned to move their centre of life fully to Portugal within the next four years. Both wanted to continue their professional work partly remotely until then and afterwards enjoy retirement on the Algarve.

Why is Faro especially interesting for owner-occupiers?

Faro offers excellent infrastructure, an international airport, modern medical care, cultural amenities and short distances within the town.

Can home-office solutions be included in the financing?

As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.

Who arranged this?

Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.

Key figures

652,000 € price, 408,500 € loan, 321,500 € own funds

  • Purchase price: 652.000 €
  • Renovation: 39.000 €
  • Financing required: 408.500 €
  • Equity: 321.500 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Portugal.

Urban living in the heart of the Algarve

Faro is far more than just the gateway to the Algarve. The provincial capital combines a historic old town with modern infrastructure, a university location, an international airport and a lively city life throughout the year. Anyone who wants to live permanently in Portugal and values short distances and excellent services will find ideal conditions in Faro.

This practical case shows how buying an apartment in the city centre can be financed over the long term and on a solid basis.

To Faro within four years, working remotely until then

A couple from Lower Saxony – she a doctor, he an industrial engineer – planned to move their centre of life fully to Portugal within the next four years. Both wanted to continue their professional work partly remotely until then and afterwards enjoy retirement on the Algarve.

After an intensive search, they chose a generous apartment in a modern residential building near the old town of Faro. They were particularly convinced by the walking-distance access to shops, restaurants, doctors and the marina.

From a 652,000 € price to a 730,000 € total investment

  • Purchase price: 652.000 €
  • Additional costs: 39.000 €
  • Renovation: 39.000 €
  • Total investment: 730.000 €
  • Equity: 321.500 €
  • Financing required: 408.500 €

A flat sold, the securities portfolio meant to stay

The buyers had equity from the sale of an apartment as well as long-term securities investments. Nevertheless, part of the assets was to be deliberately kept invested in order to secure financial flexibility for retirement.

Before moving in, the apartment was to be adapted to their personal living ideas.

39,000 € for kitchen, bathroom and a quiet home office

The apartment was in good technical condition. The planned measures focused on comfort and everyday practicality.

Planned were a new high-quality fitted kitchen, the modernisation of the main bathroom, intelligent climate control, made-to-measure fitted wardrobes in the bedroom and the fit-out of a quiet home office with integrated network cabling and additional storage solutions.

As all work was calculated in detail before the contract was signed, it could be fully incorporated into the total investment.

About 65 % on loan, costs and works paid from equity

The financing was set at around 63 % of the purchase price. This preserved a considerable part of the equity while at the same time creating a long-term balanced financing structure.

Alongside the purchase price, all acquisition costs and all planned renovation measures were included in the overall plan from the outset — covered from equity, not by the bank loan. Additional loans after the property purchase were therefore not required.

City flat moved into, assets stay flexible

Once the work was complete, a modern city apartment was created that offers ideal conditions both for the remaining working years and for later retirement.

The buyers were able to shift their centre of life to Faro step by step while preserving their financial flexibility.

Faro instead of a beach address: short distances all year

Anyone who wants to live permanently in Portugal does not necessarily have to buy a property right on the beach. Towns such as Faro offer excellent infrastructure, short distances and a lively environment throughout the year.

Budgeting all planned investments together from the outset creates planning certainty — the bank loan for the purchase price, costs and renovation from equity — and considerably eases the later move.

FAQ

Frequently asked

Why is Faro especially interesting for owner-occupiers?
Faro offers excellent infrastructure, an international airport, modern medical care, cultural amenities and short distances within the town.
Can home-office solutions be included in the financing?
As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Why are existing assets not used in full?
Many buyers want to preserve their capital investments and keep sufficient financial reserves for retirement or future investments.
Which properties are especially in demand in Faro?
Apartments, townhouses and modern flats in central residential locations are among the preferred properties for permanent owner-occupation.

Faro apartment with renovation budgeted into the overall plan

Faro combines urban living with a Portuguese way of life and excellent infrastructure. An overall plan that budgets the purchase price, acquisition costs and all planned renovation together already at the property acquisition — the bank loan for the purchase price, costs and renovation from equity — creates a reliable basis for a long-term centre of life on the Algarve.

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Anonymised individual case, not a binding statement for other projects · Brokerage under the §34i GewO licence held by Olga Nikushkina (D-W-132-ZUCB-95); Siegfried Perini registered as directly involved person (§11a GewO) · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank

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