Note

Currency exchange when buying property in Spain

§ 1What you pay

When you convert money, you pay in three ways. The first is the margin: the difference between the rate you get and the mid-market rate. The second is any fee the provider charges. The third is any fee charged by banks along the route. The sum, expressed in euros arriving, is the cost. This page belongs to the chapter in what to know about transferring money.

§ 2The mid-market rate

The mid-market rate is the middle of the buy and sell prices in the market at a moment. It is the benchmark for judging a quote. Check it on the day from a neutral source, and compare it with the quote. Remember that it moves during the day.

§ 3Comparing quotes

To compare two providers, ask for a quote for the same amount, and the same route, on the same day and at about the same time. Compare the euros arriving. If one provider shows a better rate but a higher fee, the result tells you which is cheaper.

§ 4Size and timing

Margins and fees may depend on the amount, so ask for a quote for the real sum, not an example. The timing of the conversion affects the rate. If a transfer is large, ask whether the provider can do it in parts or whether you can set a target rate.

§ 5Risk

Rates move in both directions. Between the date you agree to buy and the date you pay, the euro may rise or fall against your currency. How forward contracts work explains the tool for fixing a rate, and Currency broker vs bank Spain property compares banks and currency firms by criteria.

§ 6Currency of your costs

Not all of your costs are in the same currency or fall due at the same time. The deposit, the balance, the taxes and the fees come at different dates. Plan each. Convert the amounts that are certain first, and keep a reserve.

§ 7Records

Keep the quote, the confirmation and the bank statement for each conversion. They matter for tax and for any dispute. The by-nationality section explains why British and American owners need the dates and rates.

§ 8A caution

Be wary of anyone who promises a better rate than the market or pushes you to act at once. They are selling something, and the pressure is the warning.

§ 9A simple worksheet

Make a table with the provider, the amount sent, the fee, the euros arriving and the date and time of the quote. Fill it in for each. The row with the most euros arriving is the cheapest on that day.

§ 10Ask in writing

Ask for each quote in writing and keep it. Write down the question, the answer and the date, and keep the reply with your purchase file. Ask your lawyer to read anything that affects the amount or the timing, and do not rely on a verbal promise. If two sources disagree, ask for the official text and tell the person in writing which version you are relying on.

§ 11More on this topic

Pounds to euros explained explains sending pounds to a Spanish account and dollars to euros explained explains sending dollars to a Spanish account.

Financial note. No rate is printed unless it comes from a dated, official publication. Capital is at risk, exchange rates move, and no lender, broker or provider is recommended here. Mortgage terms are set by each lender; ask a registered intermediary about yours.