Case report · Mallorca

Practical case Mallorca: New-build villa in Santa Ponsa – Buying during the construction phase with well-considered financing planning

Both worked in senior positions at international companies and earned an above-average income. At the same time they had liquid reserves as well as a broadly diversified securities portfolio that was to remain untouched as far as possible.

Key figures

At a glance

  • Purchase price: 2.180.000 €
  • Financing required: 1.526.000 €
  • Equity: 1.107.400 €

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.

Sometimes patience is part of the best decision

A couple from Frankfurt were not looking for an existing property on Mallorca, but a modern home that was energetically state of the art. After several viewings they decided on a high-quality new-build villa in Santa Ponsa. The plot was already built on, but completion was to follow only around twelve months later.

The advantage: the buyers were still able to make numerous decisions themselves regarding the fittings and the layout.

Initial situation

Both worked in senior positions at international companies and earned an above-average income. At the same time they had liquid reserves as well as a broadly diversified securities portfolio that was to remain untouched as far as possible.

As the villa would only be handed over after completion, the financing had to take the agreed construction and payment schedule into account.

Financing overview

  • Purchase price: 2.180.000 €
  • Additional costs: 283.400 €
  • Special features during the build phase: 170.000 €
  • Total investment: 2.633.400 €
  • Equity: 1.107.400 €
  • Financing required: 1.526.000 €

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

The challenge

Several special requests were implemented during the construction phase. Among other things, the buyers opted for a larger pool complex, an outdoor kitchen, a high-quality natural-stone terrace and additional smart-home technology.

These extra costs were not to arise only after completion but to be fully accounted for from the outset.

Analysis

In the first step, the developer's entire payment schedule was analysed. All special features including realistic costs were then incorporated into the total investment.

This created a complete financing plan that covered both the purchase price and all additional services.

At the same time, sufficient equity remained available to organise the furnishing and the move without financial pressure after completion.

Financing solution

The financing was built on around 70 % of the purchase price.

The additional costs as well as all special features commissioned during the construction phase were integrated into the overall plan together with the use of equity.

The existing securities portfolio therefore did not have to be liquidated and remained part of the long-term asset strategy.

Outcome

The villa was completed on schedule and already matched the buyers' personal expectations at handover. Additional conversions after moving in were not necessary.

Thanks to the early consideration of all additional costs, the entire purchase proceeded without any subsequent financing decisions.

What other buyers can learn

When buying a new-build property, additional costs often arise from individual fitting requests. Anyone who calculates these realistically before signing the contract avoids later financing gaps and creates significantly greater planning security.

FAQ

Frequently asked questions

Are special features common with new builds?
Yes. Many buyers opt for individual adjustments during the construction phase that increase living comfort over the long term.
Why should the payment schedule be checked early?
Because it determines when own funds and financing are actually needed and how the entire liquidity plan should be structured.
Does financing make sense despite substantial wealth?
Often yes. Many buyers want to keep their assets broadly diversified rather than investing exclusively in a property.

Conclusion

The purchase of a new-build villa in Santa Ponsa shows that successful financing begins long before the handover of the keys. Anyone who combines the payment schedule, special features, equity and long-term asset planning creates the basis for a relaxed property purchase in one of Mallorca's most sought-after regions.

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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