Mortgage in Mallorca: 40 % equity, business reserves spared, €708,000 for Port d'Andratx
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.
In short
A lower loan amount reduces the ongoing burden and increases financial flexibility. Perini Finance & Property arranged the financing and approaches 30+ banks per case.
A smaller loan lowers the ongoing burden: A lower loan amount reduces the ongoing burden and increases financial flexibility.
Arranged by Perini Finance & Property: Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 30+ banks approached per case. First call free; on completion 1 % of the loan amount.
€1.18m price, €708,000 loan, €625,400 from own funds
The purchase price was 1,180,000 €. The financing required was 708,000 €, and 625,400 € came from equity.
Purchase price: 1,180,000 €; Financing required: 708,000 €; Equity: 625,400 €.
Anonymised case figure · not a binding statement for other projects · §34i GewO
Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spain.
Property for sale in Port d'Andratx: the dream of a harbour view became reality: A couple of entrepreneurs 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.
Entrepreneur couple from Austria, business funds untouched
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.
Showing a business owner's income clearly: 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.
The aim was financing that left sufficient flexibility for future investments in the company.
Company, private assets and income seen as one picture: The economic situation was not assessed on the basis of individual annual accounts alone. Rather, an overall picture emerged from the company's development, private assets and regular income.
Thanks to the high use of equity, the financing requirement was significantly reduced. At the same time, enough liquidity remained to be able to make entrepreneurial decisions independently of the purchase.
60 % loan for the purchase alone, no works needed
The additional costs were paid entirely 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.
Port d'Andratx apartment: equity used instead of a maximum loan
Acquiring an apartment in Port d'Andratx shows that solid property financing does not have to be aligned with maximum loan amounts. Anyone who uses equity in a targeted way and at the same time keeps sufficient financial reserves creates the basis for long-term security and a relaxed property purchase on Mallorca.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
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
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.
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.
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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.