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

Practical case Tenerife: Villa in Puerto de la Cruz – A generational change planned early

The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.

Key figures

At a glance

  • Purchase price: 1.980.000 €
  • Financing required: 1.386.000 €
  • Equity: 1.016.400 €

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.

A home meant to grow with the family's plans

A couple from Freiburg had known Tenerife as a holiday destination for many years. While the south of the island was the focus at first, they were later captivated by Puerto de la Cruz with its botanical gardens, established old town and pleasant year-round climate in the north.

When they viewed a generous villa with a sea view in a quiet residential setting, it quickly became clear that this property was not intended only for retirement. Their adult children, and later grandchildren, were also to spend time there regularly.

Initial situation

The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.

Alongside a debt-free house in Germany, they had liquid funds and a broadly diversified securities portfolio. Even so, they did not want to invest all of their assets in the property.

Financing overview

  • Purchase price: 1.980.000 €
  • Additional costs: 257.400 €
  • Renovation (energy efficiency, pool technology, kitchen and outdoor area): 165.000 €
  • Total investment: 2.402.400 €
  • Equity: 1.016.400 €
  • Financing required: 1.386.000 €

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

The challenge

The villa was built to a high standard but was to be modernised for energy efficiency and better prepared for year-round use.

In addition, the buyers wanted a larger kitchen, more efficient pool technology, a photovoltaic system with battery storage and a covered terrace for the winter months.

Because the property was to be used within the family over the long term, sustainable planning was central.

Analysis

Even before the contract was concluded, all modernisation measures were calculated by specialist companies and fully included in the total investment.

At the same time, the financing was not planned solely on the basis of the current income situation. Rather, considerations of later retirement and long-term succession of assets within the family were already included in the planning.

This created a financing that remains comfortably affordable even many years later.

Financing solution

The financing was set at around 70 % of the purchase price.

The additional costs and a considerable share of equity were paid immediately from own funds.

All modernisation measures were already part of the original financing. After handover, all work could be implemented without delay.

Outcome

Today the family has a modernised villa that is used year-round and offers enough room for several generations.

Thanks to the early energy optimisation, ongoing running costs were also reduced.

What other buyers can learn

A home is often acquired for several decades. It is therefore worth considering not only today's needs but also future changes within the family early in the financing planning.

FAQ

Frequently asked questions

Why were modernisations carried out immediately?
Because larger measures are usually easier to realise right after purchase than during later use.
Does financing make sense despite high equity?
Many buyers deliberately choose to keep part of their assets invested while preserving sufficient liquidity.
What role does energy efficiency play for existing properties?
It is becoming increasingly important, as modern technology improves living comfort and can reduce running costs in the long term.

Conclusion

Buying a villa in Puerto de la Cruz shows that property financing goes far beyond the purchase price itself. Anyone who combines long-term family planning, modernisation and asset structure creates the basis for a home that can meet the needs of several generations in the future too.

From this theme

More cases on this theme

Theme

Financing renovation alongside the purchase

All cases on this theme at a glance.

To the theme → Mallorca

Practical case Mallorca: Charming finca near Santanyí

Modernisation planned in from the start

To the case report → Mallorca

Practical case Mallorca: Family house in Alcúdia

When the sale of the previous property is part of the financing

To the case report → Mallorca

Practical case Mallorca: Finca with guesthouse in Deià

Two generations realise their dream together

To the case report →
Your contact

A similar situation in Spanien? Let's talk.

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 consultation

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

Read on
Region

Teneriffa overview

Market analysis, loan-to-value and conditions for the region.

To the region → Calculator

Estimate your financing

Roughly calculate budget, costs and instalment.

To the calculator → Checklist

Purchase checklist

Step by step to buying property in Spain and Portugal.

To the checklist →