For many, buying a property overseas in Spain is a dream come true and an exciting journey that comes with various costs and considerations.
An important aspect of the process, that can go under the radar, is the currency exchange and getting the most value possible when transferring your money to purchase your Spanish property.
We’ll look at how you can mitigate the foreign exchange risk of transferring money internationally and the ways to potentially save thousands by avoiding high fees.
How Can Exchange Rates Impact Buying a Property in Spain?
Exchange rates consistently fluctuate every day and due to these fluctuations, they can impact the final price of your dream property in Spain.
For example, if the currency you use to buy a property in Spain moves in your favour and becomes stronger against the Euro, this will make the final price of the Spanish property cheaper (i.e. you transfer less currency to Spain to complete the purchase).
However, the opposite (FX risk) can also happen, if the Euro moves in a stronger position against your currency then you will end up transferring more, to pay for your property.
This price variability is why the timing of purchasing your Spanish property is a vital part of the process. Between your decision to go through with the transaction and making the transaction, fluctuations in exchange rates will happen and can lead to varying final costs.
Note: Buying a property overseas will usually involve larger sums of money which makes the impact of exchange rates even more significant.
Consider the Costs of Transferring Money to Spain for Buying Property
As well as fluctuating exchange rates another important consideration is the cost of transferring money internationally which again, can vary, depending on the service you choose.
Typically, the costs involved when transferring money overseas will include:
- Transfer Fees
- Exchange Rate Charges
The three most common services include banks, online transfer services and currency brokers.
To showcase their pros and cons, we’ve summarised them in the table below:
| Service | Pros | Cons |
| Banks | Convenient choice, no sign-up process. | High transfer fees are added to international money transfers. Unfavourable exchange rates (can charge up to 3-4% of the transferred amount) No dedicated personal support. Transfer Limits in place. |
| Online transfer services | Lower transfer fees Competitive exchange rates. Quick transfer times. Suited to remittance or small international transfers. | Mostly online support via chat. No dedicated account managers. Transfer Limits in place. Sign up and ID check before sending the first transfer. |
| Currency Brokers | Competitive exchange rates. Some (not all) do not add on transfer fees for international money transfers. Dedicated account managers are available at all times. Experts in large international money transfers. Certain brokers will offer same-day or next-day transfers. | Sign up and ID check before sending the first transfer. |
Better Value for Your International Money Transfer with EasyFX*
Here’s an example of how EasyFX can make your money go further for purchasing Spanish property than using a high-street bank.
Example money transfer to Spain: £200,000.
| Service | GBP to EUR Rate Offered | Euros Bought |
| EasyFX | 1.187* | €237,400 |
| Natwest | 1.1754* | €235,089 |
| HSBC | 1.1675 | €233,492 |
| Barclays | 1.1556* | €231,131 |
| Lloyds | 1.1461* | €229,209 |
*Mid-market exchange rate captured on 28/8/2024. The mid-market rate, or interbank rate, is a standard used by money transfer services. While customers don’t get this exact rate, at EasyFX, we offer rates much closer to it than banks, giving you more value. To see EasyFX's current/live customer exchange rates, open a free account or get a free transfer quote today.
Manage Currency Exchange Risk and Costs the Easy Way
At EasyFX, our dedicated team of currency exchange brokers are experts in foreign exchange and have supported customers purchasing property abroad for over 20 years.
Our goal is to make foreign exchange, Easy, for everyone.
Unlike banks and other online transfer services, we don’t add on any transfer fees, and you will have a dedicated account manager who you can speak to whenever you need to guide you through the process. They aim to find you the most favourable exchange rate, at the right time.
As part of our exceptional service, we’ll help you navigate the Spanish property market with confidence.
With offices in Spain, we can streamline the buying process and enable you to get further support from local lawyers and experts who can advise on:
- Mortgages
- Tax implications
- Other legal considerations
Buying in Spain can be safe and simple with EasyFX.
If you are thinking of purchasing a property in Spain or close to completion, then please get in contact with our expert team today via [email protected], [email protected], [email protected] or through our contact page.
