Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Portugal-Festland

Financing an apartment in Porto – Urban living with a long-term perspective

An engineer from Munich and his partner, a corporate lawyer, decided after several years of mobile working to move permanently to Porto. They were looking for a generous apartment with a balcony, good access to the city centre and enough room for a separate study.

Key figures

At a glance

  • Purchase price: 690.000 €
  • Renovation: 75.500 €
  • Financing required: 469.000 €
  • Equity: 331.000 €

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 Portugal.

Living in Portugal's second-largest city

Porto combines historic architecture with a modern economic location and a high quality of life. The city attracts not only professionals and the self-employed but also many German-speaking buyers who want to move their centre of life permanently to Portugal. Apartments in locations close to the city centre are especially sought-after and are frequently modernised before moving in.

Initial situation

An engineer from Munich and his partner, a corporate lawyer, decided after several years of mobile working to move permanently to Porto. They were looking for a generous apartment with a balcony, good access to the city centre and enough room for a separate study. The chosen apartment was convincing for its location but was to be comprehensively modernised before moving in.

Financing overview

  • Purchase price: 690.000 €
  • Additional costs: 34.500 €
  • Renovation: 75.500 €
  • Total investment: 800.000 €
  • Equity: 331.000 €
  • Financing required: 469.000 €

The challenge

The buyers had equity from the sale of an apartment in Germany. At the same time, they did not want to liquidate their securities portfolios entirely, in order to remain financially flexible after the move too. All modernisation was to be completed before moving in.

Analysis

For high-quality city apartments in Porto, the actual investment requirement involves far more than the purchase price. Acquisition costs and individual adaptations to modern living and working requirements should be taken into account already in the financing planning.

The financing corresponded to around 68 % of the purchase price. This kept a balanced ratio between equity and financing, without excessively burdening the liquidity reserves.

Financing solution

The financing included all planned modernisation measures:

  • installation of an open-plan kitchen
  • complete modernisation of the bathrooms
  • energy-efficient air conditioning
  • creation of a separate home-office area
  • structured network cabling
  • custom-made fitted wardrobes
  • modern LED lighting in all living areas

All work was carried out immediately after the property acquisition.

Outcome

Once the modernisation was complete, the apartment could be occupied without a further building phase. The buyers moved their centre of life to Porto as planned and at the same time kept sufficient financial reserves for their new start in Portugal.

What other buyers can learn

Anyone who wants to live permanently in Porto should not focus on the purchase price alone. Only the full inclusion of additional costs and modernisation gives a realistic picture of the total investment and creates long-term planning certainty.

FAQ

Frequently asked questions

Can modernisation costs be included directly in the financing?
Yes. If the measures are planned and transparently calculated before the purchase, they can often be part of the overall financing.
Why is not all of the equity used?
Many owner-occupiers want to preserve asset reserves and keep their financial flexibility after the purchase too.
Which modernisations are especially common for apartments in Porto?
Typical are new kitchens, bathrooms, air conditioning, network technology, lighting and individual storage solutions.
Is Porto suitable as a permanent residence?
Yes. Porto offers excellent infrastructure, medical care, international transport links, a wide range of culture and is one of the most popular places to live in Portugal.

Conclusion

An apartment in Porto offers excellent conditions for a permanent centre of life in Portugal. If the purchase price, additional costs and all modernisation measures are planned together from the start, durable financing emerges that combines long-term security with financial flexibility.

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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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