Case report · Costa Brava

Financing a villa in Tossa de Mar – Mediterranean living with a long-term financing strategy

A couple of entrepreneurs from North Rhine-Westphalia planned, after selling a family business, to move their centre of life entirely to Spain. They were looking for a villa with a sea view, a generous garden and enough room for visits from their adult children and grandchildren.

Key figures

At a glance

  • Purchase price: 1.780.000 €
  • Renovation: 206.400 €
  • Financing required: 1.175.400 €
  • Equity: 1.024.600 €

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.

Living where history meets the Mediterranean

Tossa de Mar is one of the most striking coastal towns on the Costa Brava. The historic old town, the medieval town walls and the sheltered coves give the town a special atmosphere. Besides holiday properties, more and more German-speaking buyers deliberately choose a permanent residence in Tossa de Mar. Detached villas in the surrounding residential areas are especially in demand.

Initial situation

A couple of entrepreneurs from North Rhine-Westphalia planned, after selling a family business, to move their centre of life entirely to Spain. They were looking for a villa with a sea view, a generous garden and enough room for visits from their adult children and grandchildren. The house they found was convincing for its location above the coast but required comprehensive interior modernisation before moving in.

Financing overview

  • Purchase price: 1.780.000 €
  • Additional costs: 213.600 €
  • Renovation: 206.400 €
  • Total investment: 2.200.000 €
  • Equity: 1.024.600 €
  • Financing required: 1.175.400 €

The challenge

Although sufficient equity from the company sale was available, a considerable part of the assets was to remain flexibly invested. At the same time, the buyers wanted to complete all modernisation measures before the move so they could use the house immediately as their main residence.

Analysis

For high-quality villas in Tossa de Mar, the purchase price makes up only part of the actual investment. Acquisition costs and individual adaptations to living comfort and technology should be included in the financing planning early.

The financing corresponded to around 66 % of the purchase price. This kept a balanced asset structure and enough liquidity available for future plans.

Financing solution

The financing covered all intended modernisation:

  • complete redesign of the kitchen
  • modernisation of all bathrooms
  • replacement of the air conditioning with an energy-efficient system
  • smart-home control for lighting, shading and climate control
  • custom-made fitted wardrobes
  • modernisation of the home network technology
  • low-barrier adaptations on the ground floor for long-term use

All work was carried out immediately after the acquisition.

Outcome

Once the modernisation was complete, the villa could be occupied without a further building phase. The buyers had a permanently usable home that met their personal requirements. At the same time, a significant part of their assets remained outside the property.

What other buyers can learn

For high-quality villas in particular, financing that does not consider the purchase price alone is worthwhile. Anyone who plans modernisation, additional costs and sufficient liquidity reserves together creates a durable basis for a permanent centre of life in Spain.

FAQ

Frequently asked questions

Why is financing chosen despite high equity?
Many buyers want to keep their asset structure balanced and leave capital available for other long-term goals or investments.
Which modernisations are especially common for villas?
Typical are kitchens, bathrooms, air conditioning, building automation, network technology, fitted wardrobes and measures for long-term residential use.
Can low-barrier adaptations be planned in directly?
Yes. If they are provided for and calculated before the purchase, they can often be part of the overall financing.
Is Tossa de Mar suitable for permanent living?
Yes. The town offers a high quality of life, an established infrastructure, medical care, shopping and an attractive location on the Costa Brava – outside the holiday season too.

Conclusion

Buying a villa in Tossa de Mar shows how important holistic financing planning is. If the purchase price, additional costs and all modernisation are taken into account from the start, a solid basis emerges for permanent life on the Costa Brava – with sufficient financial flexibility for the future.

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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