Note
Transfer dollars to euros to buy a house in Spain
Quick answer
We print no rates and name no provider, because costs change. Compare the euros that would arrive for the same dollars, from a bank and a payment firm. Send from an account in your name, keep records and ask a US adviser about reporting.
Applies toBuyers in the US or with dollar savings who will pay in euros.
On this page: 11 sections
§ 1The route
A transfer from dollars to euros goes from your US account, or from a firm holding your dollars, to a Spanish account in euros. The conversion happens at your bank or at the firm. The cost is the fee plus the margin on the exchange rate, and some banks add fees for international wires. This page belongs to the chapter in an overview of transferring money.
§ 2Compare the result
Ask each provider for a quote for the same number of dollars on the same day. Compare the euros that arrive after all fees, including those of intermediary banks and the receiving bank. International wires can carry fixed fees, which weigh more on small amounts and less on large ones.
§ 3Authorisation
A payment firm should be licensed to provide payment services where it operates. In the US the licensing is by state and federal rules, and we do not describe them. Ask for the details and verify them. If you cannot verify a firm, do not use it.
§ 4US reporting
The US requires reports on certain foreign financial accounts. Your Spanish account may be reportable once the combined balance passes the threshold. The IRS also treats foreign real estate held directly as not reportable on the forms we read. The by-nationality section explains both. A US tax adviser should confirm what applies to you.
§ 5Timing and the test transfer
Send a small first transfer to check the details, then the larger ones. The receiving bank may ask questions about the source, which adds time. Tell your Spanish lawyer and the notary when to expect the money.
§ 6Exchange rate risk
If you pay in stages, the exchange rate can move between payments. Forward contracts explained explains forward contracts, and currency exchange explained explains the pieces of the cost.
§ 7Records
Record the euro amounts and the exchange rates on the dates of each transfer. The IRS requires amounts in dollars, and your cost basis in dollars matters for a later sale. The by-nationality section explains. Keep the confirmations.
§ 8Scams
Confirm any change of account details by phone, using a number you already know. The legal process section explains the common frauds.
§ 9Wire details
Send the wire with the exact name on the Spanish account, the account number and the bank code. Ask the receiving bank for its details in writing, and check them by phone. A wrong digit can cost days.
§ 10Keep the record
Keep the quote and the confirmation for each wire. 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
More on pounds to euros explains sending pounds to a Spanish account and banks or currency firms explained compares banks and currency firms by criteria.
FAQRelated questions
How do I compare providers?
Ask every provider to quote the identical dollar sum, in writing, on one day, then count the euros that would land after all charges. A headline rate alone hides the true price.
Does sending money abroad trigger US reporting?
The US has reporting rules for foreign accounts, and a Spanish account may be reportable. The by-nationality section explains the FBAR and Form 8938. Ask a US adviser about transfers and accounts in your case.
How long does a transfer take?
It varies with the route and the banks involved, and the first transfer to a new account is often slower. Send a small test first, and plan the large transfers well before they are due.
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.