Mijas: Financing an Andalusian country house for life between the coast and the mountains
An IT entrepreneur from Cologne and his partner wanted to move their centre of life permanently to Andalusia. While he continued to run his company entirely remotely, she planned to build up a freelance consulting activity from Spain.
At a glance
- Purchase price: 864.000 €
- Renovation: 52.300 €
- Financing required: 604.800 €
- Equity: 415.200 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living with a panoramic view and authentic Andalusia
Mijas unites two worlds: the traditional white mountain village with its Andalusian charm and the modern residential areas towards the coast. Many German-speaking buyers deliberately choose Mijas because they appreciate the peace of an established residential setting without having to give up the proximity to Fuengirola, Marbella or Málaga.
This practical case describes the financing of a country house in a regular residential setting for permanent owner-occupation. It is expressly not a rustic finca outside a residential area.
Initial situation
An IT entrepreneur from Cologne and his partner wanted to move their centre of life permanently to Andalusia. While he continued to run his company entirely remotely, she planned to build up a freelance consulting activity from Spain.
They were looking for a generous house with a garden, several terraces and enough room for two home-office areas. The decision fell on an Andalusian-style country house in an established urbanisation above the coast.
Financing overview
- Purchase price: 864.000 €
- Additional costs: 103.700 €
- Renovation: 52.300 €
- Total investment: 1.020.000 €
- Equity: 415.200 €
- Financing required: 604.800 €
The challenge
A significant part of the assets was tied up in the company. Although sufficient own funds were available, as much liquidity as possible was to be preserved in order not to restrict the further business development.
At the same time, the house was to be brought up to date technically before moving in and optimally equipped for working from home.
Analysis
The property was convincing for its location, well-kept condition and generous outdoor areas. The planned investments mainly served to improve living comfort.
Provided for were a completely new kitchen, the renewal of two bathrooms, the installation of modern sliding elements to the terrace, more energy-efficient air conditioning, additional shading on the south side and the fit-out of two independent home-office areas with a fibre-optic connection.
As all measures were defined before the contract was concluded, they were fully included in the total investment.
Financing solution
The financing was set at around 70 % of the purchase price. This kept sufficient liquidity for the company without unnecessarily burdening the financing.
Alongside the purchase price, all acquisition costs and all intended modernisation were taken into account from the start. This meant the property could be used permanently immediately once the work was completed.
Outcome
After a few months, a house was created that combines the traditional architecture with modern living comfort. The buyers were able to move their centre of life to Mijas as planned and continue their professional activity entirely from Spain.
Thanks to the balanced financing, sufficient financial room for action remained at the same time.
What other buyers can learn
Not every property with a rural character is automatically a rustic finca. If a house is in a regular residential setting, different financing options often apply than for genuine agricultural properties.
The financing should therefore always be planned on the basis of the property's actual legal and structural situation.
Frequently asked questions
Is a country house in Mijas financed like a villa?
Why were two home-office areas planned in?
Can modernisation be fully taken into account?
Why is not all of the equity used?
Conclusion
Mijas combines the charm of Andalusia with an excellent quality of living and short distances to the Costa del Sol. Anyone who takes the purchase price, additional costs and all planned modernisation into account early in joint financing creates the best conditions for a long-term successful new start in Spain.
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To the case report →A similar situation in Spanien? Let's talk.
Every financing in Spanien 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 · 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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