Practical case Tenerife: Exclusive villa in Costa Adeje – The dream of year-round life on the Canary Islands
The husband was managing director of a mid-sized mechanical engineering company; his wife worked as a management consultant. Both were planning to reduce their professional activity gradually over the coming years and move their centre of life permanently to Tenerife.
At a glance
- Purchase price: 1.790.000 €
- Financing required: 1.253.000 €
- Equity: 909.700 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A winter retreat that became the new centre of life
A couple from Stuttgart spent almost every winter on Tenerife for nearly ten years. While hotels and holiday flats were the focus at first, over time the wish for a home of their own grew. Costa Adeje in particular won them over with its pleasant year-round climate, well-kept residential complexes, excellent infrastructure and short distances to the sea.
After several viewings, they chose a detached villa with a sea view, pool and generous garden in a quiet residential area above the coast.
Initial situation
The husband was managing director of a mid-sized mechanical engineering company; his wife worked as a management consultant. Both were planning to reduce their professional activity gradually over the coming years and move their centre of life permanently to Tenerife.
In addition to a debt-free home in Germany, they had solid securities assets and sufficient equity.
Financing overview
- Purchase price: 1.790.000 €
- Additional costs: 232.700 €
- Renovation (photovoltaics, pool technology, outdoor kitchen and shading): 140.000 €
- Total investment: 2.162.700 €
- Equity: 909.700 €
- Financing required: 1.253.000 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The villa was in excellent condition. Even so, the buyers wanted to optimise the property in terms of energy efficiency and adapt it to their long-term living needs.
Alongside a modern photovoltaic system with battery storage, the pool technology was to be renewed, a high-quality outdoor kitchen built and the terrace fitted with year-round usable shading.
Because the property was to be owner-occupied permanently, financing that could be planned for the long term was more important than the lowest possible equity ratio.
Analysis
Before the purchase contract was concluded, all planned investments were calculated in detail.
At the same time, the buyers analysed their long-term income development. Since retirement was planned in a few years, the financing was not based solely on current income but was already aligned with the later stage of life.
Through the targeted use of equity, enough liquidity remained to respond flexibly to private or economic changes in future.
Financing solution
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable part of the purchase price were covered from own funds. All modernisation measures were already part of the original financing plan and could be implemented immediately after the transfer of ownership.
This created a complete calculation from the outset, with no later financing gaps.
Outcome
After a few months, the villa fully matched the buyers' personal ideas. The energy improvements reduced ongoing running costs, while the redesigned outdoor areas significantly increased living comfort.
Today the couple already spends most of the year on Tenerife and is preparing for the final move in the coming years.
What other buyers can learn
Anyone planning a property as a future main residence should not align the financing only with today's stage of life. Sufficient financial reserves and the early consideration of planned modernisation are equally important.
Frequently asked questions
Is Costa Adeje only interesting for holiday homes?
Why was the modernisation cost taken into account before the purchase?
Why was not all of the equity used?
Conclusion
Buying a villa in Costa Adeje shows that property financing involves far more than financing the purchase price alone. Anyone who plans their centre of life for the long term, includes modernisation early and preserves financial flexibility creates the basis for a relaxed new start on Tenerife.
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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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