Spanish mortgage for non-residents in Mallorca: €708,000 for Port d'Andratx, 40 % equity, reserves spared
Anonymised case from Mallorca: modern apartment in Port d'Andratx, 40 % equity, business reserves spared, €708,000. Mortgage financing for non-residents.
What is decisive for financing the apartment in Port d'Andratx with 40 % equity?
What is decisive is a traceable economic situation with meaningful income and business documents. For the Austrian entrepreneur couple, company development, private assets and regular income were seen as one picture. The loan was €708,000, about 60 percent of the €1,180,000 purchase price, and the business reserves stayed untouched.
Why choose a smaller loan?
A lower loan amount reduces the ongoing burden and increases financial flexibility.
How was the €1,180,000 apartment financed?
With 708,000 € of financing and 625,400 € of equity, which also covered the 153,400 € additional costs.
Property for sale in Port d'Andratx: the dream of a harbour view became reality: An entrepreneur couple from Austria had looked at various regions on Mallorca over the years.
While the north of the island won them over with its nature, it was ultimately the atmosphere of Port d'Andratx that tipped the balance.
The lively harbour, the upmarket gastronomy and the proximity to the sea matched exactly their ideas of a holiday property that was later also to be used for longer stays.
After an intensive search they found a modern apartment with a large terrace and a view of the marina.
How was the entrepreneurs’ income presented?
Transparently: besides private income, business records showed long-term financial stability, and the financing left room for future investment in the company.
The aim was to secure financing that would allow sufficient flexibility for future investment in the company.
How was the financial situation assessed?
Not on single annual accounts but as one picture of company performance, private assets and regular income; the high equity reduced the loan and kept liquidity for business decisions.
The high level of equity investment significantly reduced the financing requirements. At the same time, sufficient liquidity was maintained to enable business decisions to be taken independently of the property purchase.
Who were the buyers?
Both buyers jointly ran a successful company in Austria and had regular income and sufficient equity. As they did not want to burden their business reserves unnecessarily, a balanced ratio between own funds and financing was to be created.
The apartment was in very good condition, so no major renovation was required at first.
€1.33m total, purchase costs paid from own funds: Purchase price: 1,180,000 €; Additional costs: 153,400 €; Total investment: 1,333,400 €; Equity: 625,400 €; Financing required: 708,000 €.
The financing share corresponded to around 60 % of the purchase price.
Why did the loan cover the purchase alone?
Because no modernisation was needed; the loan covered around 60 % of the price, and the additional costs and a considerable part of the price came from own funds.
In addition, the buyers contributed a considerable part of the purchase price themselves. The financing covered around 60 % of the purchase price and was aligned with long-term predictability.
As no modernisation was necessary, the financing focused exclusively on the acquisition of the property.
Low monthly payment, reserves left for the company: The apartment could be taken over within the planned timeframe. Thanks to the high equity ratio, the monthly burden remained comparatively low, while at the same time enough financial reserves remained for private and entrepreneurial projects.
Today the couple uses the property regularly for longer stays on Mallorca and plans to shift their centre of life partly to the island in a few years.
Even with plenty of equity, keep reserves back: A high use of equity reduces not only the financing requirement but often creates additional financial security. Even so, not all of the available assets should flow into the purchase. Sufficient reserves remain an important part of sustainable financing planning, especially for the self-employed and entrepreneurs.
Why use equity instead of a maximum loan?
Because targeted use of equity with enough reserves kept creates long-term security; solid financing does not have to aim at the maximum loan.
Living in Port d'Andratx: what an apartment purchase means for the financing: Even with a high equity ratio, the income of an entrepreneurial household has to be presented traceably, with business documents alongside private income. Here the loan covered around 60 percent of the purchase price, the additional costs were paid from own funds, and no renovation financing was needed.
Detached house in Llucmajor — case report: Anonymised case from Mallorca: detached house in Llucmajor. Mortgage financing for non-residents.
Frequently asked questions
Should a property be paid for entirely from own funds?
That depends on the individual asset planning. A balanced combination of equity and financing often offers more room for action than a full use of capital.
Which documents does an entrepreneurial household need for a mortgage in Mallorca?
Even with a high equity ratio, the income circumstances of an entrepreneurial household had to be presented traceably. Alongside the private income, business documents were also required in order to document the economic stability over the long term.
Did the apartment in Port d'Andratx need modernising?
No, the apartment was in very good condition. As no modernisation was required, the financing focused exclusively on the purchase of the property.
How were the additional costs of the apartment in Port d'Andratx paid?
The additional costs of 153,400 € were paid entirely from own funds. The financing covered around 60 % of the purchase price, and as no modernisation was necessary, it focused exclusively on the acquisition of the property.
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.
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.