Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Costa Blanca

Practical case Costa Blanca: Villa in Calpe – When bonus payments and variable income are correctly assessed

The buyer was a member of the management board of an international logistics company. His wife worked as a pharmaceutical sales representative.

Key figures

At a glance

  • Purchase price: 1.265.000 €
  • Financing required: 885.500 €
  • Equity: 688.950 €

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 Spanien.

A high income is not always a regular income

A couple from Hamburg had decided, after many holidays on the Costa Blanca, to move to Spain permanently. Calpe in particular won them over with its combination of modern infrastructure, beaches, a marina and the striking Peñón de Ifach.

After several viewings they found a detached villa in a well-kept residential area with a generous plot, a pool and a sea view.

Initial situation

The buyer was a member of the management board of an international logistics company. His wife worked as a pharmaceutical sales representative.

A considerable part of the family income consisted of performance-based bonus payments. These fluctuated significantly from year to year.

Although the average income was high, the financing was to be deliberately structured so that it remains comfortably affordable even in years with lower bonus payments.

Financing overview

  • Purchase price: 1.265.000 €
  • Additional costs: 164.450 €
  • Renovation (photovoltaics, pool technology, air conditioning and terrace design): 145.000 €
  • Total investment: 1.574.450 €
  • Equity: 688.950 €
  • Financing required: 885.500 €

The financing share corresponded to around 70 % of the purchase price.

The challenge

The villa was in very good condition, yet the buyers wanted to carry out various technical improvements.

At the same time, the financing had to be structured so that it was not dependent on exceptionally high bonus payments. Durable, stable household budgeting was the family's top priority.

Analysis

First the income components were considered separately. The regular base salary formed the basis of the planning, while variable remuneration was taken into account only as additional financial room.

All modernisation costs were then fully calculated and included, together with the purchase price and additional costs, in the total investment.

This created financing that remains solid over the long term even with fluctuating income.

Financing solution

The financing was set at around 70 % of the purchase price.

The additional costs and a considerable share of equity were paid from existing own funds.

All planned modernisation measures were already fully taken into account. This meant all work could be completed immediately after the transfer of ownership.

Outcome

Today the couple uses the villa year-round as a residence on the Costa Blanca.

The financing is based on conservative household budgeting and remains comfortably affordable even when variable income components are lower than in especially successful business years.

What other buyers can learn

It is not only the amount of income that is decisive. A realistic view of the income available over the long term is equally important. Anyone who does not fully include variable remuneration in their financing planning creates additional financial security.

FAQ

Frequently asked questions

Are bonus payments generally relevant for financing?
Variable income components can be taken into account. For sustainable financing planning, however, it is decisive that the regular income also offers sufficient stability.
Why were modernisation costs planned at the time of purchase?
So that all work could be completed immediately after the transfer of ownership and no later financing was required.
Why was more not financed despite high incomes?
The buyers deliberately wanted to keep their monthly burden manageable while using sufficient equity.

Conclusion

Buying a villa in Calpe shows that good property financing is not based on high incomes alone. Anyone who realistically assesses variable remuneration, considers modernisation costs early and uses equity in a targeted way creates a stable long-term basis for life on the Costa Blanca.

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Anonymised individual case, not a binding statement for other projects · Siegfried Perini, BAFA-notified for the cross-border activity of the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank

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