Financing an apartment in Porto – Urban living with a long-term perspective
An engineer from Munich and his partner, a corporate lawyer, decided after several years of mobile working to move permanently to Porto. They were looking for a generous apartment with a balcony, good access to the city centre and enough room for a separate study.
In short
What was this case about?
An engineer from Munich and his partner, a corporate lawyer, decided after several years of mobile working to move permanently to Porto. They were looking for a generous apartment with a balcony, good access to the city centre and enough room for a separate study.
Can modernisation costs be included directly in the financing?
As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Why is not all of the equity used?
Many owner-occupiers want to preserve asset reserves and keep their financial flexibility after the purchase too.
Who arranged this?
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.
€690,000 flat, €469,000 loan, €75,500 for modernisation
- Purchase price: 690.000 €
- Renovation: 75.500 €
- Financing required: 469.000 €
- Equity: 331.000 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living in Portugal's second-largest city
Porto combines historic architecture with a modern economic location and a high quality of life. The city attracts not only professionals and the self-employed but also many German-speaking buyers who want to move their centre of life permanently to Portugal. Apartments in locations close to the city centre are especially sought-after and are frequently modernised before moving in.
After years of mobile work, settling in Porto
An engineer from Munich and his partner, a corporate lawyer, decided after several years of mobile working to move permanently to Porto. They were looking for a generous apartment with a balcony, good access to the city centre and enough room for a separate study. The chosen apartment was convincing for its location but was to be comprehensively modernised before moving in.
€800,000 total, €34,500 in purchase costs
- Purchase price: 690.000 €
- Additional costs: 34.500 €
- Renovation: 75.500 €
- Total investment: 800.000 €
- Equity: 331.000 €
- Financing required: 469.000 €
Flat sale becomes the equity, portfolios stay untouched
The buyers had equity from the sale of an apartment in Germany. At the same time, they did not want to liquidate their securities portfolios entirely, in order to remain financially flexible after the move too. All modernisation was to be completed before moving in.
68 % financed, reserves left unstretched
For high-quality city apartments in Porto, the actual investment requirement involves far more than the purchase price. Acquisition costs and individual adaptations to modern living and working requirements should be taken into account already in the financing planning.
The financing corresponded to around 68 % of the purchase price. This kept a balanced ratio between equity and financing, without excessively burdening the liquidity reserves.
Open kitchen, bathrooms and study paid from own funds
The overall plan included all planned modernisation measures — covered from equity, not by the bank loan:
- installation of an open-plan kitchen
- complete modernisation of the bathrooms
- energy-efficient air conditioning
- creation of a separate home-office area
- structured network cabling
- custom-made fitted wardrobes
- modern LED lighting in all living areas
All work was carried out immediately after the property acquisition.
Ready to move in, reserves still in place
Once the modernisation was complete, the apartment could be occupied without a further building phase. The buyers moved their centre of life to Porto as planned and at the same time kept sufficient financial reserves for their new start in Portugal.
Only with fees and works does the sum add up
Anyone who wants to live permanently in Porto should not focus on the purchase price alone. Only the full inclusion of additional costs and modernisation gives a realistic picture of the total investment and creates long-term planning certainty.
Frequently asked
Can modernisation costs be included directly in the financing?
Why is not all of the equity used?
Which modernisations are especially common for apartments in Porto?
Is Porto suitable as a permanent residence?
Porto: overall planning combines security and flexibility
An apartment in Porto offers excellent conditions for a permanent centre of life in Portugal. If the purchase price, additional costs and all modernisation measures are planned together from the start, durable financing emerges that combines long-term security with financial flexibility.
More cases on this theme
Practical case Mallorca: Charming finca near Santanyí
Modernisation planned in from the start
Practical case Mallorca: Family house in Alcúdia
When the sale of the previous property is part of the financing
Practical case Mallorca: Finca with guesthouse in Deià
Two generations realise their dream together
A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised 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