Madeira property: Retired buyer from Austria, €426,500 for an apartment in Funchal
The apartment in Funchal was intended as a permanent home on Madeira. A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
Does the Portuguese bank co-finance the modernisation of the apartment in Funchal?
No, as a rule the Portuguese bank does not co-finance modernisation. It belongs in the overall plan, from equity or by raising capital against German property. In this case the financing was around 70 % of the purchase price, and the kitchen, bathrooms, air conditioning and further modernisation were carried out from equity, not from the bank loan.
€610,000 flat, €426,500 loan, €273,500 equity
The purchase price was 610,000 € and the renovation 59,500 €. The financing required was 426,500 €, and 273,500 € came from equity.
Reserves kept for retirement or unforeseen expenses: Many buyers want to keep financial reserves for retirement or unforeseen expenses and prefer not to tie all of their assets up in a property.
Arranged by Perini Finance & Property: Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 30+ banks approached per case. First call free; on completion 1 % of the loan amount.
Purchase price: 610,000 €; Renovation: 59,500 €; Financing required: 426,500 €; Equity: 273,500 €.
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.
Property for sale in Funchal: the island capital with a high quality of life: Funchal is the economic and cultural heart of Madeira. Its year-round mild climate, excellent infrastructure and scenic setting make the island capital attractive for German-speaking buyers who want to move their centre of life permanently to Portugal. Apartments with a sea view and easy access to the city centre are in especially high demand.
A flat with lift and terrace above the seafront promenade
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
€700,000 in total: price, purchase costs, modernisation: Purchase price: 610,000 €; Additional costs: 30,500 €; Renovation: 59,500 €; Total investment: 700,000 €; Equity: 273,500 €; Financing required: 426,500 €.
Part of the capital stays as a reserve for retirement
The couple had sufficient assets, but deliberately wanted to keep part of their capital as a financial reserve for retirement. At the same time, they wished to complete all modernisation work before the move so they could use the apartment permanently right away.
About 70% loan-to-value, part of the capital stays available: When buying property on Madeira, the purchase price alone should not be the only consideration. Acquisition costs and necessary modernisation also affect the actual capital requirement. An overall plan that takes every component into account — the bank loan for the purchase price, costs and modernisation from equity — creates a transparent and durable basis.
In this case the financing corresponded to around 70 % of the purchase price. This allowed the available equity to be used in a targeted way without tying up all liquidity.
Kitchen, bathrooms, cooling and shading before moving in
The overall plan was structured so that all planned work could be carried out immediately — from equity, not from the bank loan:
complete renewal of the kitchen; modernisation of both bathrooms; energy-efficient air conditioning; high-quality fitted wardrobes; electric terrace shading; modern LED lighting; network cabling for home office and media technology.
Once the work was completed, the apartment was fully ready to move into.
Life moved to Funchal, ready to live in with no further works: The couple moved their centre of life to Funchal as planned and were able to occupy the modernised apartment without further building work. At the same time, sufficient assets remained as a financial reserve. The overall plan covered the entire investment requirement from the outset — the bank loan for the purchase price, costs and modernisation from equity.
Costing the purchase as one whole project, not just the price
Anyone moving permanently to Madeira should treat the purchase as a complete project. When the purchase price, additional costs and modernisation are planned together, a reliable financing emerges without later top-up loans or unplanned extra costs.
Apartment in Funchal: solid financing for retirement on Madeira: An apartment in Funchal offers ideal conditions for permanent life on Madeira. Anyone who plans the entire investment realistically and takes all modernisation into account from the start creates a solid financial basis for a new chapter on the Atlantic.
A similar situation in Portugal? Let's talk. Every financing in Portugal is an individual case. In a free initial consultation we will tell you honestly what is feasible and which bank fits.
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
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
Villa in Ponta do Sol — doctors phasing out work: A couple of medical specialists phase out work on Madeira's sunny side. Anonymised Madeira case — non-resident financing. §34i.
Frequently asked questions
Which modernisations are especially common for apartments in Funchal?
Typical ones are kitchens, bathrooms, air conditioning, shading, lighting, fitted wardrobes and modern digital infrastructure.
Is Funchal suitable as a permanent residence?
Yes. Funchal offers excellent year-round infrastructure, high-quality medical care, shopping, cultural amenities and a pleasant climate that many German-speaking expatriates appreciate.
How much equity was needed for the apartment in Funchal with a total investment of 700,000 €?
The total investment of 700,000 € consisted of the purchase price of 610,000 €, additional costs of 30,500 € and renovation of 59,500 €. Of this, 273,500 € came from equity and the financing required was 426,500 €.
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.