Illustrative Model · Protaras / Paralimni, Cyprus
Family Villa Holding Company
a working model, not a promise
A Cyprus SPV buys land rights, builds a turnkey 4-bed en-suite villa under Article 11B, finances construction with a bank loan, and lets it year-round on Airbnb. Adjust the numbers below — everything recalculates live.
Sources & Uses — Year Zero
Company formation, land acquisition and the construction loan, before a single booking comes in.
Uses of Funds
| Company formation | €1,800 |
| Land price (incl. 19% VAT) | €357,000 |
| ↳ VAT, refundable | €57,000 |
| Construction + furniture (0% VAT, Art. 11B) | €450,000 |
| Tourism licence — first registration | €222 |
| Total Uses (cash needed now) | €809,022 |
| True cost (net of refundable VAT) | €752,022 |
| Total VAT reclaimable, all houses (×3) | €171,000 |
| Total property price (incl. any VAT) | €807,000 |
Sources of Funds
| Equity — land contribution | €360,000 |
| Equity — construction contribution | €450,000 |
| Bank loan | €0 |
| Total Sources | €810,000 |
Working capital buffer: €978 surplus
Partner capital committed: €810,000 of €810,000 available (6 partners)
Capital needed (price + buffer): €887,700
Year-Round Rental Plan
A 4-bed, all-en-suite villa managed on Airbnb throughout the year. Base rate card reflects Protaras/Paralimni seasonality for a premium pool villa — scale it with the sliders.
Month-by-Month Detail
| Month | Days | Nightly Rate | Guest-Facing Rate | Occupancy | Occupied Nights | Gross Revenue |
|---|---|---|---|---|---|---|
| Jan | 31 | €173 | €207 | 28% | 8.5 | €1,471 |
| Feb | 28 | €173 | €207 | 28% | 7.7 | €1,328 |
| Mar | 31 | €195 | €235 | 35% | 10.9 | €2,133 |
| Apr | 30 | €241 | €290 | 50% | 14.9 | €3,586 |
| May | 31 | €299 | €359 | 61% | 18.8 | €5,608 |
| Jun | 30 | €379 | €455 | 77% | 23.1 | €8,766 |
| Jul | 31 | €460 | €552 | 94% | 29.0 | €13,333 |
| Aug | 31 | €483 | €580 | 95% | 29.4 | €14,224 |
| Sep | 30 | €402 | €483 | 83% | 24.8 | €9,962 |
| Oct | 31 | €299 | €359 | 61% | 18.8 | €5,608 |
| Nov | 30 | €218 | €262 | 39% | 11.6 | €2,524 |
| Dec | 31 | €218 | €262 | 35% | 10.9 | €2,384 |
| Total / Year | 365 | — | — | 57% avg | 208 | €70,928 |
Annual Operating Result
From gross bookings down to what's actually left in the company account each year — expands automatically to show Villa 2 / Villa 3 income and loan payments once you add them in the Portfolio Expansion panel.
Profit & Loss (Cash Basis)
| Line | € / Year |
|---|---|
| Gross rental revenue — Villa 1 | €70,928 |
| Management / OTA fee (20%) | -€14,186 |
| Cleaning & turnovers (52 stays) | -€3,644 |
| Special Defence Contribution (2.25% of rent) | -€1,596 |
| Fixed operating costs | -€13,674 |
| Loan debt service (interest + principal) | -€0 |
| Villa 1 — Net Cash Flow | €37,828 |
| Gross rental revenue — Villa 2 | €70,928 |
| Management / OTA fee (20%) | -€14,186 |
| Cleaning & turnovers | -€3,644 |
| Special Defence Contribution | -€1,596 |
| Fixed operating costs (no auditor — shared above) | -€8,674 |
| Loan debt service — Villa 2 | -€74,082 |
| Villa 2 — Net Cash Flow | -€31,254 |
| Gross rental revenue — Villa 3 | €70,928 |
| Management / OTA fee (20%) | -€14,186 |
| Cleaning & turnovers | -€3,644 |
| Special Defence Contribution | -€1,596 |
| Fixed operating costs (no auditor — shared above) | -€8,674 |
| Loan debt service — Villa 3 | -€74,082 |
| Villa 3 — Net Cash Flow | -€31,254 |
| Combined Company Net Cash Flow (before tax) | -€24,680 |
| Estimated corporate tax (12.5%, simplified) | -€0 |
| Combined Company Net Cash Flow (after tax) | -€24,680 |
Where the Waterfall Goes
Recurring Costs, Itemised
Fixed running costs of holding and letting the villa, independent of occupancy.
| Item | € / Year |
|---|---|
| Auditor | €5,000 |
| Electricity | €3,600 |
| Water (Water Board) | €700 |
| Water supply top-ups (pool/garden) | €500 |
| Building & landlord insurance | €1,000 |
| Municipal fees | €400 |
| Pool & garden maintenance | €2,400 |
| Tourism licence (€222 / 3 yrs, amortised) | €74 |
| Fixed costs subtotal | €13,674 |
Loan Amortisation
The construction facility, repaid on an equal-instalment basis — add an extra annual payment on the left to pay it off sooner.
Monthly Instalment
Annual debt service: €0
Year 1 Interest vs Principal
When Will It Be Paid Off?
Scheduled payoff: Year 15. Add an extra annual payment on the left to see it paid off earlier.
Cash Flow Effect — With vs Without Extra Payments
Per-Partner Return
Net cash flow split pro-rata to what each partner actually put in.
| Partner | Capital In | Annual Net Share | Cash Yield |
|---|---|---|---|
| Partner 1 | €135,000 | €5,892 | +4.4% |
| Partner 2 | €135,000 | €5,892 | +4.4% |
| Partner 3 | €135,000 | €5,892 | +4.4% |
| Partner 4 | €135,000 | €5,892 | +4.4% |
| Partner 5 | €135,000 | €5,892 | +4.4% |
| Partner 6 | €135,000 | €5,892 | +4.4% |
| Total (6 investors) | €810,000 | €35,349 | +4.4% |
Property Value & Path to a Second Villa
What the villa is worth once built, how fast the loan gets paid down, and how long until there's enough capital — through paid-off equity and retained rental profit — to seed a second deal.
Value at Completion
| Market value (220 m² × €4,000/m²) | €880,000 |
| Cost basis (land net of VAT + construction) | €750,000 |
| Built-in margin at delivery | €130,000 (+17.3%) |
Loan Payoff
Property value at payoff: €906,400
Equity Buildup — Property Value vs Loan Balance
Milestones
| Year | Property Value | Loan Balance | Owner Equity | Cumulative Rental Profit |
|---|---|---|---|---|
| 1 (payoff) | €906,400 | €0 | €906,400 | €35,349 |
| 5 | €1,020,161 | €0 | €1,020,161 | €176,747 |
| 10 | €1,182,646 | €0 | €1,182,646 | €353,494 |
| 15 | €1,371,011 | €0 | €1,371,011 | €530,242 |
Capital for Villa #2
By year 1 the loan is fully repaid. At 3.0% annual appreciation the villa is worth roughly €906,400 — all of it owner equity. On top of that, retained rental profit over the same period adds up to roughly €35,349 (assuming today's operating performance holds every year).
Growing the Portfolio — Villa #2 & #3
Villa 1 is bought debt-free (0% loan) and stands as collateral, letting Villa 2 and Villa 3 be bought immediately with full bank financing. Toggle each on the left and set how it's financed — same rental performance as Villa 1 is assumed for each.
Income & Obligations — 1, 2 or 3 Houses (all loans fully active)
The strict test: what if every loan you'd have was already running at once?
| Houses | Gross Income | Operating Costs | Loan Payments | Total Obligations | Covered? | Surplus / Shortfall |
|---|---|---|---|---|---|---|
| 1 house | €70,928 | €33,100 | €0 | €33,100 | Yes | €37,828 |
| 2 houses | €141,855 | €61,199 | €74,082 | €135,281 | Yes | €6,574 |
| 3 houses | €212,783 | €89,299 | €148,164 | €237,463 | No | -€24,680 |
Properties Owned Over Time
Combined Portfolio Net Cash Flow
Portfolio Milestones
| Year | Properties | Combined Gross Rental | Net Cash Flow |
|---|---|---|---|
| 0 (Villa 2 bought) (Villa 3 bought) | 3 | €212,783 | -€24,680 |
| 5 | 3 | €212,783 | -€24,680 |
| 10 | 3 | €212,783 | -€24,680 |
| 15 | 3 | €212,783 | €123,484 |
Reading the Leverage
With 3 properties in the portfolio by year 15, combined gross rental reaches €212,783/year and net cash flow is €123,484/year — each additional villa is pulling its own weight once its loan is serviced, on top of what Villa 1 already earns free and clear once repaid.