Portuguese mortgage for non-residents: €436,100 loan on a €694,000 low-barrier flat in Portimão, Algarve
A couple from Baden-Württemberg, both of whom had worked as pharmacists for many years, were planning to retire full-time in the Algarve. Key considerations were low-barrier access, a central location and sufficient space to accommodate regular visits from their family.
What does Portimão offer flat owners in healthcare, shopping and transport links within the Algarve?
Portimão offers excellent infrastructure, modern healthcare, varied shopping and good transport links within the Algarve. As one of the largest towns on the Algarve it also has a modern marina and short distances to the beaches of Praia da Rocha, and in this case the apartment near the Arade waterfront was close to the promenade and the town centre.
Key figures
- Purchase price: 694,000 €
- Renovation: 44,000 €
- Financing required: 436,100 €
- Equity: 343,900 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
How was the 694,000 € apartment financed?
With 436,100 € of financing and 343,900 € of equity, which also covered the 42,000 € additional costs and the 44,000 € renovation.
Portimão: living year-round between town, harbour and Atlantic: Portimão is one of the largest towns on the Algarve and has long developed into an attractive place to live for people who want to live permanently in Portugal. Alongside excellent infrastructure, the town offers a modern marina, excellent medical care, varied shopping and short distances to the beaches of Praia da Rocha.
This practical case shows how buying a modern apartment for owner-occupation can be financed in a long-term and economically sensible way.
Who were the buyers?
A couple from Baden-Württemberg, both pharmacists for many years, planned full retirement on the Algarve. Low-barrier access, a central location and enough room for regular family visits were important.
After an intensive search, they chose a generous apartment near the Arade waterfront. They were particularly convinced by the proximity to the promenade, the good accessibility of the town centre and the high build quality.
780,000 € total investment, 343,900 € from own assets: Purchase price: 694,000 €; Additional costs: 42,000 €; Renovation: 44,000 €; Total investment: 780,000 €; Equity: 343,900 €; Financing required: 436,100 €.
Where did the equity come from?
The buyers had equity from the sale of their previous home as well as a securities portfolio built up over the long term. Nevertheless, part of the assets was to be preserved in order to secure financial reserves for retirement.
Before moving in, several individual adaptations were planned.
What was the 44,000 € spent on?
A new fitted kitchen with extra storage, one bathroom, fitted wardrobes, zone-controlled air conditioning and a guest room converted into a work and hobby room.
The apartment was in very good structural condition. The planned measures focused on living comfort and long-term everyday practicality.
Planned were a new fitted kitchen with additional storage, the modernisation of one bathroom, made-to-measure fitted wardrobes, zone-controlled air conditioning and the conversion of a guest room into a combined work and hobby room.
As all measures were calculated in detail before the contract was signed, they could be fully incorporated into the total investment.
Financing at around 63 %, equity remains available: The financing was set at around 63 % of the purchase price. This kept sufficient equity available 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. A later follow-up financing was therefore not required.
A flat for the transition years and for retirement: Once the work was complete, a comfortable residence was created that offers the buyers optimal conditions both in the transition phase and in later retirement.
The financing remained calculable over the long term while at the same time leaving sufficient financial flexibility for travel and personal projects.
What does the case show for buyers in Portimão?
Portimão offers far more than a well-known seaside resort. The town combines urban living with excellent infrastructure and short distances to the Atlantic. Anyone who plans the purchase price, acquisition costs and renovation costs together already at the property purchase creates a reliable basis for a permanent move to Portugal.
Portimão apartment purchase for a comfortable long-term base: Portimão combines urban comfort with a Mediterranean quality of life and excellent infrastructure. An overall plan that budgets the purchase price, acquisition costs and all planned renovation together already at the property purchase creates the basis for a long-term and comfortable centre of life on the Algarve. The bank loan covers the purchase price; costs and renovation are paid from equity.
Frequently asked questions
Why is existing equity not used in full?
Many buyers want to preserve their asset structure and keep financial reserves for retirement or future investments.
Which properties are especially in demand in Portimão?
Modern apartments, flats, penthouses and detached houses in well-connected residential locations are among the preferred properties for permanent owner-occupation.
Does the Portuguese bank co-finance the renovation of an apartment in Portimão?
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 all acquisition costs and all planned renovation measures were covered from equity, not by the bank loan.
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.
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; at least 2 of 15–20 banks approached per case. First call free; on completion 1 % of the loan amount. · 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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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.