Parental gift used as equity: €409,500 for an apartment in Cala d'Or
A couple in their early 30s from Bavaria bought an apartment in Cala d'Or on Mallorca with the help of a parental gift. Both buyers had secure incomes from permanent employment relationships. The saved equity, however, would not have been enough to comfortably cover both the purchase price and all additional costs.
Can a parental gift be used as equity for an apartment in Cala d'Or?
Yes, in this case a parental gift of 150,000 € was part of the equity of 251,550 €, and the financing came to around 70 % of the purchase price. The gift was documented transparently so that the origin of the own funds was traceable, and the buyers kept sufficient financial reserves after the purchase.
€585,000 apartment, €409,500 loan, €251,550 of own funds
The purchase price of the apartment in Cala d'Or was 585,000 €. The financing required was 409,500 € and the equity 251,550 €.
- Possible if the origin of the funds is documented: The prerequisite is that the origin and provision of the funds can be documented traceably.
- Keep part of your savings as a reserve: In many cases it is sensible to hold back part of the savings as a reserve in order to remain financially flexible after the purchase too.
- 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: 585,000 €; Financing required: 409,500 €; Equity: 251,550 €.
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 Spain.
Property for sale in Cala d'Or: the dream of a property of their own began with family support: A couple in their early 30s from Bavaria had spent their summers in Cala d'Or for many years.
The small coves, the marina and the relaxed atmosphere made the place their favourite destination on Mallorca.
Instead of continuing to rent a holiday apartment every year, the wish arose for their own apartment that was also to be used for longer stays over the long term.
The right property was found quickly: a modern apartment with two bedrooms, a large terrace and walking distance to the sea.
A gift from the parents tops up the savings
Both buyers had secure incomes from permanent employment relationships.
The parents therefore decided to make part of their assets available early as a gift in order to ease the purchase.
€661,050 total, €150,000 of it a family gift
The total investment was 661,050 €, including 76,050 € additional costs. Of the 251,550 € equity, 150,000 € was a parental gift.
Purchase price: 585,000 €; Additional costs: 76,050 €; Total investment: 661,050 €; Equity: 251,550 €; of which parental gift: 150,000 €; Financing required: 409,500 €.
The financing share corresponded to around 70 % of the purchase price.
Documenting where the gifted money came from
The gift was to be documented transparently so the origin of the own funds was traceable. At the same time, the buyers did not want to use all their own assets but to have sufficient financial reserves after the purchase too.
Savings, gift and reserves listed item by item: In the first step, all own funds were cleanly broken down. Alongside their own savings, the parents' gift flowed into the financing planning.
As no modernisation was required, the calculation focused on the purchase price, additional costs and sufficient liquidity reserves for furnishing, running costs and future trips to Mallorca.
The equity ratio of around 30 % formed a solid basis for the financing.
70 % financed, fees from savings and the gift: Around 70 % of the purchase price was financed.
The additional costs and the remaining equity share were paid entirely from own funds and the gift.
Thanks to this structure, the young couple did not have to use up their private reserves entirely and could still acquire the desired property.
First summer in their own flat, savings intact
Just a few weeks after the purchase, the family spent their first summer months in their own apartment in Cala d'Or.
The gift considerably eased the entry, without overburdening the buyers financially over the long term. At the same time, sufficient reserves for future expenses remained.
Bring family support into the plan early and openly: Not infrequently, parents or grandparents support the property purchase of the next generation. If this support is provided early and transparently, it can significantly strengthen the equity share and place the financing on a stable basis.
Cala d'Or apartment combines a gift, equity and a loan: Buying an apartment in Cala d'Or shows that family support can ease the path to a property of one's own. Decisive, however, is balanced financing in which equity, a gift and a loan are sensibly combined. This creates a solution that not only enables the purchase but also offers long-term financial stability.
A similar situation in Spain? Let's talk. Every financing in Spain 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.
Apartment in Cala Ratjada — case report: Anonymised case from Mallorca: apartment in Cala Ratjada. Mortgage financing for non-residents.
Frequently asked questions
Why are sufficient reserves important?
Alongside the running costs of a property, unexpected expenses can arise at any time. A financial reserve increases long-term planning certainty.
How must a parental gift be documented when it is used as equity?
The prerequisite is that the origin and provision of the funds can be documented traceably. In this case the gift was documented transparently so the origin of the own funds was traceable.
Was modernisation required for the apartment in Cala d'Or?
No modernisation was required. The calculation focused on the purchase price, additional costs and sufficient liquidity reserves for furnishing, running costs and future trips to Mallorca.
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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.