Buy property in Mallorca: Parents and children buying together, €2.55m for a finca in Deià
An entrepreneurial family from Switzerland had spent time on Mallorca regularly for many years. While the parents were shortly before retirement, the two adult children worked location-independently and already spent several months a year on the island. The wish arose to acquire a property that offers enough room for all generations without having to give up privacy.
What does it take for parents and children to buy a finca in Deià together?
It takes a clear legal and financial arrangement and careful planning of the respective equity shares. Here a balanced combination of equity and financing spared the parents' asset structure and the children's liquidity. The loan was €2,550,000, about 60 percent of the €4,250,000 purchase price, and the €320,000 refurbishment was paid from equity.
Price €4.25m, loan €2.55m, the rest from own funds
- Purchase price: 4,250,000 €
- Financing required: 2,550,000 €
- Equity: 2,572,500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Deià: a family project in one of the most exclusive regions of Mallorca
After a longer search, the choice fell on a natural-stone finca with a separate guesthouse in Deià – embedded in the Serra de Tramuntana and with a wide view over the Mediterranean.
Parents and children buy the finca together: The parents had considerable assets from the sale of a family business. The children earned stable income as self-employed IT consultants and could participate financially in the purchase.
Instead of acquiring two separate properties, the family deliberately chose a joint solution with a long-term perspective.
Total outlay €5.12m including fees and refurbishment: Purchase price: 4,250,000 €; Additional costs: 552,500 €; Renovation and energy optimisation: 320,000 €; Total investment: 5,122,500 €; Equity: 2,572,500 €; Financing required: 2,550,000 €.
The financing share corresponded to around 60 % of the purchase price.
Updating the old finca without losing its character
Although sufficient assets were available, the financing had to take into account the different income and asset circumstances within the family.
In addition, there was agreement that the historic finca was to be modernised technically without changing its original character. Provided for were a complete renewal of the building services, the installation of a photovoltaic system with battery storage, efficient air conditioning and the careful refurbishment of the guesthouse.
All measures were to be fully planned in financially already before the purchase.
Weighing the parents' capital against the children's cash
First the financial possibilities of all those involved were considered together. This showed that a balanced combination of equity and financing spared both the parents' asset structure and the children's liquidity.
In parallel, all modernisation costs were calculated by specialist companies and included in the total investment.
This created realistic and robust financing planning already before the purchase.
60 % loan, refurbishment paid from own funds
The financing was set at around 60 % of the purchase price.
The additional costs and a considerable share of equity were contributed immediately. At the same time, all planned modernisation measures were included in the overall plan — covered from equity, not by the bank loan. So the work could begin after the transfer of ownership without additional financing steps.
Thanks to this structure, sufficient liquidity remained for future investments and unforeseen expenses.
Parents retired on site, children in the guest house: Once the modernisation was complete, a home was created that met the needs of all generations. While the parents spend their retirement mainly on Mallorca, the children use the guesthouse regularly as a work and living place.
The joint investment proved economically more sensible than acquiring several individual properties.
Buying together: plan early, count refurbishment in
Properties are increasingly acquired across generations today. For high-quality properties in particular, joint financing can be sensible if it is planned early and structured transparently. It is equally important to take modernisation costs fully into account already before the purchase.
Deià: several generations finance the finca together: Acquiring a finca in Deià shows that high-quality property financing does not depend on the purchase price alone. When several generations invest together, assets are used strategically and all modernisation measures are taken into account from the start, a durable solution emerges for one of the most exclusive residential locations on Mallorca.
Frequently asked questions
Is financing sensible despite high equity?
Many wealthy buyers deliberately choose to keep part of their assets invested and at the same time use balanced financing.
Which modernisation was planned for the historic finca in Deià?
Provided for were a complete renewal of the building services, the installation of a photovoltaic system with battery storage, efficient air conditioning and the careful refurbishment of the guesthouse. The historic finca was to be modernised technically without changing its original character.
How do the parents and children use the finca with guesthouse in Deià?
The parents spend their retirement mainly on Mallorca, and the children use the guesthouse regularly as a work and living place. The joint investment proved economically more sensible than acquiring several individual properties.
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.