Madeira property: Permanent move after retirement, €537,200 for a house in Caniço
A couple from North Rhine-Westphalia, both long-standing tax advisers, were planning a permanent move to Madeira after entering retirement. They were looking for a detached house in Caniço with a sea view, a low-maintenance garden and enough room for regular family visits.
How is the modernisation of a house in Caniço paid for?
It is paid from equity or by raising capital against German property, not by the bank. As a rule the Portuguese bank does not co-finance modernisation. In Caniço the €70,500 for kitchen, bathrooms, air conditioning and more came from own funds. The loan was €537,200, about 68 percent of the €790,000 purchase price, which left reserves for retirement.
€790,000 house, €537,200 loan, €362,800 equity
- Purchase price: 790,000 €
- Renovation: 70,500 €
- Financing required: 537,200 €
- Equity: 362,800 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living in Caniço: a new home between Funchal and the east coast
Caniço is one of the most popular places to live on Madeira.
Its proximity to the island capital Funchal, good infrastructure and quiet residential areas make it especially attractive for German-speaking buyers who want to move their centre of life permanently to Portugal. Detached houses often offer plenty of living space but require individual modernisation before moving in.
Retirement first, then the sea-view house in Caniço
The chosen house was in very good structural condition but was to be adapted technically and aesthetically to their own ideas.
€900,000 all in, €70,500 for the modernisation: Purchase price: 790,000 €; Additional costs: 39,500 €; Renovation: 70,500 €; Total investment: 900,000 €; Equity: 362,800 €; Financing required: 537,200 €.
The proceeds from the house sale should not all be tied up: The couple had liquid funds from the sale of their previous property in Germany. Even so, not all of their assets were to flow into the purchase. Part of the capital was to remain available for retirement and unforeseen expenses. At the same time, it was important to complete all modernisation before moving in.
68% loan-to-value: equity and loan combined in balance
For a permanent change of residence to Madeira, holistic financing planning is often more sensible than looking at the purchase price alone. Only by including additional costs and modernisation does the actual capital requirement become clear.
The financing corresponded to around 68 % of the purchase price. This allowed equity and outside financing to be combined in a balanced way without restricting financial flexibility.
Kitchen, bathrooms, cooling and lighting paid from own funds
All planned measures were already taken into account in the overall plan — covered from equity, not by the bank loan:
installation of a modern open kitchen; renewal of the bathrooms; energy-efficient air conditioning of the living areas; new shading systems on the terraces; custom-made fitted wardrobes; modernisation of the network and internet infrastructure; intelligent lighting control.
All work was carried out immediately after the purchase.
Moved in a few weeks later, reserves still in place: The detached house could be occupied fully modernised a few weeks later. The buyers began their new chapter on Madeira without a further building phase and at the same time kept sufficient financial reserves for the future.
Targeted works turn a good house into one of your own
For a permanent move to Madeira, it pays to consider the property purchase as a whole. When the purchase price, additional costs and modernisation are planned together, reliable financing emerges without later top-up loans or unplanned extra costs.
Caniço detached house balances quiet living and city access: A detached house in Caniço combines a quiet residential setting with quick access to Funchal. Anyone who plans the total investment realistically and includes all modernisation in the overall plan from the start creates a solid basis for permanent life on Madeira.
Frequently asked questions
Which modernisations are typical for detached houses in Caniço?
Kitchens, bathrooms, air conditioning, lighting, digital infrastructure and individual storage solutions are frequently modernised.
Is Caniço suitable as a permanent residence?
Yes. Caniço offers good infrastructure, a fast connection to Funchal, medical care, shopping and a high quality of life.
How much equity went into the detached house in Caniço?
The equity was 362,800 € of a total investment of 900,000 €. The total investment covered the purchase price of 790,000 €, additional costs of 39,500 € and renovation of 70,500 €.
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.
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.