Practical case Tenerife: Apartment in Santa Cruz de Tenerife – Living in the island capital rather than a holiday resort
The buyer was a corporate lawyer; his wife headed the European sales of a medical technology company. Both planned to split their work between Germany and Tenerife for a few more years before moving their centre of life to the island entirely.
At a glance
- Purchase price: 845.000 €
- Financing required: 591.500 €
- Equity: 518.350 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
In the middle of life rather than in the middle of tourism
A couple from Frankfurt had originally had the south of Tenerife in mind. During their viewing trip, however, they spent several days in Santa Cruz de Tenerife and quickly realised they were not looking for a classic holiday property.
Instead, they wanted a permanent residence with short distances, excellent infrastructure, cultural amenities and lively city life. In the end they chose a generous apartment in a modern residential building with a large terrace and a view across parts of the city to the Atlantic.
Initial situation
The buyer was a corporate lawyer; his wife headed the European sales of a medical technology company. Both planned to split their work between Germany and Tenerife for a few more years before moving their centre of life to the island entirely.
The equity came mainly from the sale of an apartment in Germany and from many years of savings.
Financing overview
- Purchase price: 845.000 €
- Additional costs: 109.850 €
- Renovation (kitchen, air conditioning, fitted furniture and smart-home system): 68.000 €
- Total investment: 1.022.850 €
- Equity: 518.350 €
- Financing required: 591.500 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The apartment was in excellent condition but did not fully match the buyers' ideas.
Planned were a high-quality fitted kitchen, custom-made storage solutions, modern air conditioning and the integration of a smart-home system.
Because the apartment was to be used just a few weeks after purchase, all work had to be planned early.
Analysis
Before the purchase contract was concluded, all planned measures were calculated in detail and included, together with the purchase price and additional costs, in the total investment.
In parallel, a financing plan was drawn up that took into account not only the current income situation but also the later permanent residence on Tenerife.
The buyers deliberately chose to keep part of their assets as a financial reserve.
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 own funds.
All planned modernisations were also fully included in the overall plan. This meant the apartment could be completed immediately after the transfer of ownership.
Outcome
Just a few months later, the couple was using the apartment regularly for longer stays on Tenerife.
Today the property offers everything needed for the later permanent move and already meets all the requirements for modern living in a lively island capital.
What other buyers can learn
Not every future centre of life has to be in a classic holiday resort. Cities like Santa Cruz offer excellent infrastructure for anyone who wants to live on Tenerife year-round and values short distances and urban life.
Frequently asked questions
Is Santa Cruz de Tenerife suitable as a permanent place to live?
Why were the modernisation costs taken into account directly?
Why was part of the equity kept?
Conclusion
Buying an apartment in Santa Cruz de Tenerife shows that successful property financing should always be aligned with one's personal life plan. Anyone who uses equity deliberately, takes modernisation into account early and preserves financial reserves creates a solid basis for a permanent home on Tenerife.
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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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