Costa Blanca property: German rental income counted, €766,500 for a house in Dénia
A couple from Dortmund had travelled to various regions of Spain over many years. While the Costa del Sol was the focus at first, Dénia ultimately won them over. The combination of a lively old town, a marina, beaches and year-round infrastructure made the place an ideal centre of life.
Does German rental income count when financing a house in Dénia?
Yes, in this case. The regular income from the couple's two rented apartments in Germany was included in the long-term household budget, and they kept the apartments instead of selling them. The loan was €766,500, about 70 percent of the €1,095,000 purchase price, and the €118,000 of works came from own funds.
1,095,000 € price, 766,500 € loan, 588,850 € own funds
- Purchase price: 1,095,000 €
- Financing required: 766,500 €
- Equity: 588,850 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
The wish for a home by the sea did not arise overnight
After several viewing appointments they chose a modern detached house in a quiet residential area with a garden and pool.
Two let flats support the financing: The buyer was head of a mechanical engineering company; his wife worked as a senior physician. In addition, the couple owned two rented apartments in Germany that generated regular rental income.
Although sufficient equity was available, not all of their assets were to flow into the purchase. The existing investments were to be deliberately preserved.
70 % of the price financed, 1,355,350 € in total
The total investment was 1,355,350 €, with 588,850 € of equity and 766,500 € of financing, which corresponded to around 70 % of the purchase price.
Purchase price: 1,095,000 €; Additional costs: 142,350 €; Renovation (photovoltaics, pool technology, kitchen and outdoor areas): 118,000 €; Total investment: 1,355,350 €; Equity: 588,850 €; Financing required: 766,500 €.
The financing share corresponded to around 70 % of the purchase price.
Solar panels, pool system, kitchen and garden planned: The house was in excellent condition but was to be modernised technically and adapted to the buyers' personal ideas.
Planned were a new fitted kitchen, an energy-efficient photovoltaic system, the renewal of the pool technology and the redesign of the garden with automatic irrigation.
In addition, the financing was to remain comfortably affordable over the long term even if the professional situation changed later.
Rental income in the household budget, investments left alone
Before the purchase contract was concluded, all modernisation costs were fully calculated and considered together with the purchase price and additional costs.
In addition, the regular income from the rented apartments was included in the long-term household budget.
The buyers deliberately chose to keep their investments in Germany and continue to use them as part of their asset strategy.
118,000 € of works covered from own funds
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable share of equity were paid from existing funds.
All modernisation measures were included in the overall plan from the outset — covered from equity, not by the bank loan. This meant all work could be carried out directly after the transfer of ownership.
Ready to move into within months, the let flats stay: After a few months, the house was fully modernised and ready to move into.
Today the couple mainly uses the property themselves and plans to move their centre of life permanently to Dénia over the coming years. At the same time, the rented apartments in Germany remain part of their long-term asset planning.
Keep existing property rather than selling it too soon
Regular rental income can be an important part of personal financial planning. Anyone who does not sell existing properties prematurely but integrates them sensibly into the overall strategy creates additional financial stability.
Detached house in Dénia woven into the wider wealth plan: Buying a detached house in Dénia shows that property financing should always be part of comprehensive asset planning. Anyone who sensibly combines purchase price, modernisation, equity and existing investments creates a durable basis for the dream of life on the Costa Blanca.
Frequently asked questions
Why was part of the equity kept?
Sufficient financial reserves increase flexibility and provide security for future developments.
Which modernisation was planned for the detached house in Dénia?
Planned were a new fitted kitchen, an energy-efficient photovoltaic system, the renewal of the pool technology and the redesign of the garden with automatic irrigation. All modernisation measures were covered from equity, not by the bank loan.
When could the modernisation work on the house in Dénia start?
All modernisation measures were included in the overall plan from the outset, so all work could be carried out directly after the transfer of ownership. After a few months, the house was fully modernised and ready to move into.
A similar situation in Spain? Let's talk.
Every financing in Spain 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.