Mortgage in Spain for non-residents: Spanish flat in Benidorm for the final working years
A married couple from southern Germany, both of whom had held senior positions at a medium-sized company for many years, were planning a gradual move to Spain. They intended to spend most of their final years in employment working from home, before eventually moving to the Costa Blanca permanently upon retirement.
What does Benidorm offer for a modern apartment beyond the tourist areas?
Alongside the tourist areas, Benidorm offers numerous residential districts with good infrastructure, medical care, shopping and year-round city life. The couple here chose a modern apartment in an established residential area. The loan was €418,500, about 65 percent of the €645,000 purchase price, and the €28,600 of modernisation was paid from equity.
The key figures: €645,000 price, €418,500 loan
- Purchase price: 645,000 €
- Renovation: 28,600 €
- Financing required: 418,500 €
- Equity: 332,500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
How was the €645,000 apartment financed?
With 418,500 € of financing and 332,500 € of equity, which also covered the 77,400 € additional costs and the 28,600 € renovation.
Buying an apartment in Benidorm: a blend of city life, the beach and good amenities: Benidorm is often associated with holidays and high-rise buildings. At the same time, the town has long since established itself as an attractive place to live for people who wish to make the Costa Blanca their home. The combination of year-round amenities, healthcare, shopping facilities and short distances makes Benidorm an attractive option for German-speaking owner-occupiers too.
This case study concerns the purchase of a modern apartment as a future main residence.
Does the Spanish bank co-finance modernisation?
As a rule no. Modernisation belongs in the overall plan and is paid from equity or by raising capital against German property.
Property for sale in Benidorm: For buyers looking at Costa Blanca property, Benidorm combines city life, the beach and year-round infrastructure.
Who wanted a sea-view flat for home office now and retirement later?
A couple from southern Germany in senior positions who planned to spend their final working years mostly from home and then retire to the Costa Blanca.
They were looking for a high-quality apartment with a generous terrace, a sea view and good access to shops and the Benidorm promenade. A lift, an underground garage and a well-kept residential complex were also important.
After a longer search, the decision fell on a modern apartment in an established residential area.
€751,000 total investment, €332,500 from own funds: Purchase price: 645,000 €; Additional costs: 77,400 €; Renovation: 28,600 €; Total investment: 751,000 €; Equity: 332,500 €; Financing required: 418,500 €.
Why was part of the assets to stay invested?
So the purchase did not use up all equity; the financing also had to fit the transition from working life to retirement, and the works followed right after handover.
A further aspect was the income situation during the transition phase between active working life and retirement. The financing therefore had to fit both current and future life planning.
Building in good shape; kitchen, baths and office planned: The property was in a sought-after residential area of Benidorm with stable demand and good infrastructure. The building was technically in very good condition, so the planned measures focused exclusively on individual wishes.
Provided for were, among other things, a new fitted kitchen, the modernisation of both bathrooms, more efficient air conditioning and the fit-out of a comfortable home-office area.
As all work was defined at the acquisition, it was included in the overall plan from the start.
Why was around 65 % financed?
It kept a significant part of the assets available with a solid equity ratio; costs and works came from equity, so no later top-up loan was needed.
The overall plan covered not only the purchase price but also the planned modernisation works and the total capital required for the acquisition — with purchase costs and modernisation funded from equity rather than from the bank loan. This meant that the property was ready for permanent occupation immediately upon completion of the works.
The apartment has been fully renovated, with the financing suited to both phases: Once the renovation was complete, the result was a modern home that meets both the requirements of the final years of working life and the long-term plans for retirement.
The financing maintained a balanced ratio between equity and debt. At the same time, all the planned modernisation projects were carried out without the need for additional funding at a later date.
Why budget for your own taste, not only the purchase price?
Because adapting a home to your own style often causes extra costs that should be planned in early.
An overall plan that budgets the purchase price, additional costs and planned modernisation together — the bank loan for the purchase price; costs and modernisation from equity — creates planning certainty from the start and avoids later financial surprises.
Benidorm apartment turns from holiday base into permanent home: Benidorm offers far more than a classic holiday location. For many German-speaking buyers, the city is developing into a permanent centre of life. A carefully structured overall plan that budgets all planned investments together already at the acquisition — the bank loan for the purchase price, costs and modernisation from equity — creates the basis for a relaxed start in the new home on the Costa Blanca.
City apartment in Alicante — case report: Anonymised case from Alicante: financing a city apartment with historic flair. Mortgage financing for non-residents.
Frequently asked questions
Is a high use of equity always sensible?
Not necessarily. Many buyers deliberately choose to keep part of their assets liquid or invested and combine the purchase with balanced financing.
Which properties are especially in demand among owner-occupiers in Benidorm?
Above all modern apartments with a terrace, a sea view, a lift, an underground garage and good access to shops and the city centre are among the preferred forms of housing.
Does the Spanish bank finance the modernisation of an apartment in Benidorm?
As a rule the Spanish bank does not co-finance modernisation. In this case the €28,600 of modernisation was paid from equity, and the loan of €418,500 covered about 65 percent 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 we will tell you honestly what is feasible and which bank fits.
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; at least 2 of 15–20 banks approached per case. First call free; on completion 1 % of the loan amount. · 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.