Case report · Teneriffa

Practical case Tenerife: Modern apartment in Los Cristianos – The first residence on the Canaries after working life

The former vocational-school teacher and his wife, who had worked for many years as an administrative manager, had regular pension income and a debt-free apartment in Germany. This was to be kept at first and sold later as needed.

Key figures

At a glance

  • Purchase price: 685.000 €
  • Financing required: 479.500 €
  • Equity: 366.550 €

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.

A new chapter with a view of the Atlantic

After more than thirty years of working life, a couple from Hesse decided to spend their retirement not in Germany but on Tenerife. During numerous holidays they had come to appreciate Los Cristianos. The beach promenade, good medical care, shopping and the pleasant year-round climate made the town their first choice.

They were not looking for a holiday flat but for a modern apartment that allows comfortable permanent living.

Initial situation

The former vocational-school teacher and his wife, who had worked for many years as an administrative manager, had regular pension income and a debt-free apartment in Germany. This was to be kept at first and sold later as needed.

As both placed great value on financial security, the financing was to be deliberately conservative.

Financing overview

  • Purchase price: 685.000 €
  • Additional costs: 89.050 €
  • Renovation (kitchen, bathrooms, air conditioning and terrace shading): 72.000 €
  • Total investment: 846.050 €
  • Equity: 366.550 €
  • Financing required: 479.500 €

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

The challenge

The apartment was in well-kept condition but did not fully meet the requirements for a permanent residence.

Planned were an age-appropriate bathroom modernisation, a new fitted kitchen, energy-efficient air-conditioning units and a weatherproof terrace roof so the outdoor area could be used year-round.

The buyers wanted to complete all measures directly after purchase and then live in the property for many years without major investment.

Analysis

Before the purchase decision, all planned work was calculated in detail and, together with the additional costs, included in the total cost.

In parallel, it was examined how the financing could be reconciled in the long term with the later pension income. Not only the current financial situation played a role, but also sufficient reserves for future developments.

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 savings.

All modernisation costs were also fully taken into account before the purchase. This meant the work could begin immediately after the transfer of ownership and be completed within a few weeks.

Outcome

The apartment was fully adapted to the needs of the new chapter of life. Today the couple has a permanently usable residence with short distances to the beach, shops and medical care.

Because all investments were planned from the start, no further major expenditure was required after moving in.

What other buyers can learn

Anyone planning retirement abroad should not only consider location and purchase price. A financing that is sustainable over the long term, sufficient equity and a property that still meets personal needs many years later are equally important.

FAQ

Frequently asked questions

Why were the modernisation costs taken into account immediately?
So the apartment could be fully adapted to the buyers' needs right after purchase and no later financing became necessary.
Is Los Cristianos also suitable as a permanent place to live?
Many buyers deliberately choose Los Cristianos as their main residence because of its good infrastructure, medical care and year-round quality of life.
Should financing already be aligned with retirement?
Yes. Sustainable financing planning takes into account not only current income but also the later financial situation.

Conclusion

Buying an apartment in Los Cristianos shows how important forward-looking financing planning is. Anyone who calculates equity, additional costs and necessary modernisation realistically from the start and aligns the financing with their personal life plan creates the best conditions for a relaxed new start on Tenerife.

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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