Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Gran Canaria

Practical case Gran Canaria: Villa in San Agustín – Deliberately keeping the home in Germany

The buyer owned an engineering firm; his wife worked as a dentist. Both had stable incomes and a debt-free detached house in Germany.

Key figures

At a glance

  • Purchase price: 1.280.000 €
  • Financing required: 896.000 €
  • Equity: 688.400 €

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.

Two centres of life can be a good decision

A couple from near Cologne did not want to move their centre of life entirely to Spain. Instead, both planned to spend around seven months a year on Gran Canaria and the rest of the time in Germany.

After numerous viewings they chose a modern villa in San Agustín. Decisive were the quiet residential setting, the proximity to the sea and the excellent links to Maspalomas and Las Palmas.

The home in Germany was to remain deliberately in family ownership.

Initial situation

The buyer owned an engineering firm; his wife worked as a dentist. Both had stable incomes and a debt-free detached house in Germany.

Because the house was not to be sold, the financing of the property on Gran Canaria had to be sustainable entirely from existing own funds and current income.

Financing overview

  • Purchase price: 1.280.000 €
  • Additional costs: 166.400 €
  • Renovation (pool, photovoltaics, air conditioning and outdoor areas): 138.000 €
  • Total investment: 1.584.400 €
  • Equity: 688.400 €
  • Financing required: 896.000 €

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 various improvements.

The existing pool was to be modernised, a photovoltaic system installed, the complete air conditioning renewed and the garden redesigned.

At the same time, the buyers wanted to keep enough financial reserves, even though a debt-free property in Germany already existed.

Analysis

Before the purchase, all planned investments were calculated in detail and considered together with the purchase price and additional costs.

In addition, the long-term household budget was drawn up. A particular question was how the financing would develop after the gradual withdrawal from working life.

The buyers deliberately chose against selling their German property, as it was to continue to be used by the family.

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 funds.

All modernisation measures were also fully included in the overall plan. This meant the work could be completed directly after the transfer of ownership.

Outcome

Today the couple uses both properties in line with their life plan. While the winter months are spent mainly on Gran Canaria, the house in Germany remains the centre for family celebrations and longer summer stays.

Thanks to the early modernisation, the villa already meets the requirements of a permanent residence.

What other buyers can learn

Buying a property abroad does not necessarily mean giving up the previous home. Many buyers deliberately choose two centres of life and align their financing accordingly for the long term.

FAQ

Frequently asked questions

Does the home in the home country have to be sold?
No. Many buyers keep their property for family or personal reasons and finance the purchase in Spain independently of it.
Why were modernisation costs taken into account immediately?
So that all work could be completed directly after the purchase and later additional financing was avoided.
Is sufficient liquidity important despite a high equity ratio?
Yes. Financial reserves create security and make it possible to respond flexibly to future changes.

Conclusion

Buying a villa in San Agustín shows that property financing should always fit personal life planning. Anyone who wants to use two residences permanently should reconcile purchase price, modernisation, equity and long-term financial security early on.

From this theme

More cases on this theme

Theme

Financing renovation alongside the purchase

All cases on this theme at a glance.

To the theme → Mallorca

Practical case Mallorca: Charming finca near Santanyí

Modernisation planned in from the start

To the case report → Mallorca

Practical case Mallorca: Family house in Alcúdia

When the sale of the previous property is part of the financing

To the case report → Mallorca

Practical case Mallorca: Finca with guesthouse in Deià

Two generations realise their dream together

To the case report →
Your contact

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 consultation

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

Read on
Region

Gran Canaria overview

Market analysis, loan-to-value and conditions for the region.

To the region → Calculator

Estimate your financing

Roughly calculate budget, costs and instalment.

To the calculator → Checklist

Purchase checklist

Step by step to buying property in Spain and Portugal.

To the checklist →