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

Practical case Costa Blanca: Villa in Jávea – When a gift eases the path to a home in Spain

The buyer was a partner in an audit firm; his wife worked as a specialist lawyer. Both had stable incomes and their own assets.

Key figures

At a glance

  • Purchase price: 1.395.000 €
  • Financing required: 976.500 €
  • Equity: 731.850 €

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.

Sometimes the dream begins with a decision within the family

A couple from Munich had resolved some years earlier to move their centre of life to the Costa Blanca in the long term. While many regions came into question, Jávea won them over with its combination of a Mediterranean old town, modern residential areas, coves and a high year-round quality of life.

After a longer search they found a detached villa with a pool, a Mediterranean garden and generous terraces in a quiet residential setting.

Initial situation

The buyer was a partner in an audit firm; his wife worked as a specialist lawyer. Both had stable incomes and their own assets.

The buyer's parents also decided to transfer part of their assets during their lifetime in order to support the purchase. This significantly strengthened the equity, without the buyers having to use all of their reserves.

Financing overview

  • Purchase price: 1.395.000 €
  • Additional costs: 181.350 €
  • Renovation (outdoor kitchen, pool technology, photovoltaics and air conditioning): 132.000 €
  • Total investment: 1.708.350 €
  • Equity: 731.850 €
  • of which parental gift: 240.000 €
  • Financing required: 976.500 €

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

The challenge

The villa was built to a high standard, yet the buyers planned several technical improvements and a comprehensive redesign of the outdoor areas.

At the same time, the gift was to be cleanly documented so the origin of the own funds was fully traceable.

In addition, the buyers deliberately wanted to keep financial reserves for their further life planning.

Analysis

Before the purchase contract was concluded, all modernisation costs were calculated in detail and included, together with the purchase price and additional costs, in the total investment.

The entire equity structure was then analysed. It was taken into account which funds came from their own savings and which from the family asset transfer.

This created transparent and durable financing.

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 own funds and the gift.

All modernisation measures were also already fully included in the original financing planning. This meant the work could begin immediately after the transfer of ownership.

Outcome

Just a few months later, the villa fully matched the buyers' personal ideas.

Thanks to the targeted use of the gift, a considerable part of their own assets remained untouched. At the same time, a permanently usable residence on the Costa Blanca was created.

What other buyers can learn

An early asset transfer within the family can strengthen the equity share and ease the financing. Important, however, are transparent planning and complete documentation of the own funds used.

FAQ

Frequently asked questions

Can a gift be used as equity?
Yes. A gift within the family is often used to support the purchase. The origin of the funds should be traceably documented.
Why were modernisation costs taken into account before the purchase?
So that all measures could be implemented directly after handover and no later financing was required.
Why was own wealth still preserved?
Financial reserves increase long-term flexibility and create additional security for future developments.

Conclusion

Buying a villa in Jávea shows that family support and carefully structured financing can be combined excellently. Anyone who plans equity, a gift and modernisation early creates a stable basis for a permanent centre of 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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