Tenerife property: winter retreat became the main home, €1,253,000 loan in Costa Adeje
A couple from Stuttgart spent almost every winter on Tenerife for nearly ten years. While hotels and holiday flats were the focus at first, over time the wish for a home of their own grew. Costa Adeje in particular won them over with its pleasant year-round climate, well-kept residential complexes, excellent infrastructure and short distances to the sea.
How is the financing of a villa in Costa Adeje planned for the years after working life?
The financing was not based solely on current income but aligned with the later stage of life, as retirement was planned within a few years. The loan was €1,253,000, about 70 percent of the €1,790,000 purchase price. Targeted use of equity left liquidity for changes, and the €140,000 of upgrades was part of the plan from the start.
Purchase price €1,790,000, own funds €909,700
- Purchase price: 1,790,000 €
- Financing required: 1,253,000 €
- Equity: 909,700 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Costa Adeje: a winter retreat that became the new centre of life
After several viewings, they chose a detached villa with a sea view, pool and generous garden in a quiet residential area above the coast.
A couple winding down work and moving to Tenerife: The husband was managing director of a mid-sized mechanical engineering company; his wife worked as a management consultant. Both were planning to reduce their professional activity gradually over the coming years and move their centre of life permanently to Tenerife.
In addition to a debt-free home in Germany, they had solid securities assets and sufficient equity.
€2,162,700 total investment, €140,000 modernisation
The total investment of 2,162,700 € includes 140,000 € for photovoltaics, pool technology, outdoor kitchen and shading. Equity was 909,700 €, the financing required 1,253,000 €, around 70 % of the purchase price.
Purchase price: 1,790,000 €; Additional costs: 232,700 €; Renovation (photovoltaics, pool technology, outdoor kitchen and shading): 140,000 €; Total investment: 2,162,700 €; Equity: 909,700 €; Financing required: 1,253,000 €.
The financing share corresponded to around 70 % of the purchase price.
Solar, pool tech and outdoor kitchen for living there: The villa was in excellent condition. Even so, the buyers wanted to optimise the property in terms of energy efficiency and adapt it to their long-term living needs.
Alongside a modern photovoltaic system with battery storage, the pool technology was to be renewed, a high-quality outdoor kitchen built and the terrace fitted with year-round usable shading.
Because the property was to be owner-occupied permanently, financing that could be planned for the long term was more important than the lowest possible equity ratio.
Financing matched to the years after working life
Before the purchase contract was concluded, all planned investments were calculated in detail.
At the same time, the buyers analysed their long-term income development. Since retirement was planned in a few years, the financing was not based solely on current income but was already aligned with the later stage of life.
Through the targeted use of equity, enough liquidity remained to respond flexibly to private or economic changes in future.
70% of the price, upgrades included from the outset
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable part of the purchase price were covered from own funds. All modernisation measures were already part of the original financing plan and could be implemented immediately after the transfer of ownership.
This created a complete calculation from the outset, with no later financing gaps.
Lower running costs, villa used most of the year: After a few months, the villa fully matched the buyers' personal ideas. The energy improvements reduced ongoing running costs, while the redesigned outdoor areas significantly increased living comfort.
Today the couple already spends most of the year on Tenerife and is preparing for the final move in the coming years.
Plan the loan for the next stage of life as well
Anyone planning a property as a future main residence should not align the financing only with today's stage of life. Sufficient financial reserves and the early consideration of planned modernisation are equally important.
Villa in Costa Adeje: financing that goes beyond the purchase price: Buying a villa in Costa Adeje shows that property financing involves far more than financing the purchase price alone. Anyone who plans their centre of life for the long term, includes modernisation early and preserves financial flexibility creates the basis for a relaxed new start on Tenerife.
Frequently asked questions
Why was not all of the equity used?
The buyers deliberately wanted to keep part of their assets as a liquidity reserve and not fundamentally change their long-term asset structure.
Which modernisation measures were planned for the villa in Costa Adeje?
Alongside a modern photovoltaic system with battery storage, the pool technology was to be renewed, a high-quality outdoor kitchen built and the terrace fitted with year-round usable shading.
How were the additional costs of the villa purchase in Costa Adeje covered?
The additional costs and a considerable part of the purchase price were covered from own funds. The financing was set at around 70 % of the purchase price.
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.