Villa in Lagos – Self-employed income the bank had to weigh first
A couple from North Rhine-Westphalia – she a self-employed interior designer, he the managing director of a software company – planned a gradual move to the Algarve. Over the coming years, part of their professional work was still to be carried out remotely before full retirement in Portugal begins.
In short
What was this case about?
A couple from North Rhine-Westphalia – she a self-employed interior designer, he the managing director of a software company – planned a gradual move to the Algarve. Over the coming years, part of their professional work was still to be carried out remotely before full retirement in Portugal begins.
Why is Lagos especially interesting for owner-occupiers?
Lagos offers a historic old town, modern infrastructure, excellent medical care, a marina and a high quality of life throughout the year.
Can home-office adaptations be co-financed?
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.
Purchase price 972,000 €, financing needed 631,800 €
- Purchase price: 972.000 €
- Renovation: 70.000 €
- Financing required: 631.800 €
- Equity: 468.200 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living on the Algarve with maritime flair
Lagos is one of the most popular places to live on the western Algarve. The historic old town, the spectacular rock cliffs, the modern marina and the excellent infrastructure make the town an attractive centre of life for German-speaking buyers. At the same time, Lagos offers a lively environment all year round, with short distances to shops, medical care and leisure facilities.
This practical case shows how buying a villa for permanent owner-occupation can be implemented with long-term sustainable financing.
Self-employed and remote: moving to Lagos in stages
A couple from North Rhine-Westphalia – she a self-employed interior designer, he the managing director of a software company – planned a gradual move to the Algarve. Over the coming years, part of their professional work was still to be carried out remotely before full retirement in Portugal begins.
After an intensive search, they chose a detached villa in a quiet residential area of Lagos. Decisive factors were the proximity to the old town, short distances to the sea and enough room for two home-office areas.
1.1 m € total investment, 70,000 € of it refurbishment
- Purchase price: 972.000 €
- Additional costs: 58.000 €
- Renovation: 70.000 €
- Total investment: 1.100.000 €
- Equity: 468.200 €
- Financing required: 631.800 €
Flat sale plus portfolio, a large share stays invested
The buyers had liquid funds from the sale of an apartment as well as a broadly diversified securities portfolio. Nevertheless, a considerable part of their assets was to remain invested in order to preserve long-term financial flexibility.
Before moving in, the property was to be adapted to their personal requirements for year-round living.
70,000 € for new windows, a kitchen and two work rooms
The villa was in good structural condition. The planned investments focused on energy efficiency, living comfort and adaptation to everyday life in the future.
Planned were a new fitted kitchen with a cooking island, the modernisation of two bathrooms, the installation of energy-efficient windows on the west side, modern air conditioning with individual room control and the fit-out of two fully equipped home-office rooms with high-performance network cabling.
As all measures were already established before the property purchase, they could be fully incorporated into the total investment.
Loan capped at 65 %, no follow-up financing needed
The financing was set at around 65 % of the purchase price. This preserved sufficient equity while at the same time creating a balanced and long-term sustainable 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. A later additional financing was therefore not required.
A house for working years and retirement, independence kept
Once the work was complete, a comfortable home was created that meets both the requirements of the remaining working years and the long-term plans for retirement.
The buyers were able to shift their centre of life to the Algarve step by step while preserving their financial independence.
Lagos: coast and daily life, works in the budget early
Lagos combines an exceptional coastal landscape with excellent everyday infrastructure. Anyone who accounts for all renovation measures already at the property purchase creates a complete overall calculation and avoids later financing gaps.
Especially with a permanent move to Portugal, this approach provides additional planning certainty.
Frequently asked
Why is Lagos especially interesting for owner-occupiers?
Can home-office adaptations be co-financed?
Why is not all of the equity used?
Which properties are especially in demand in Lagos?
Lagos: overall planning creates a relaxed base in southern Portugal
Lagos is one of the most versatile places to live on the Algarve. 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 and relaxed centre of life in the south of Portugal.
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Two generations realise their dream together
A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised 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