Currency Exchange when buying a property in Spain – what to consider
When buying a property abroad, the first thought is how much the property is going to cost, as well as the associated taxes that come with it. But what you might not have considered is the currency exchange needed to purchase a property in Spain in Euros. There are many factors that buyers and sellers need to consider, both before and during the buying process, so it’s important to find the best currency exchange for you.
Many people are unaware that the currency exchange can have a huge impact on a property sale or purchase in Spain. Typically, many of us only experience the effects of it when exchanging money to travel abroad, after discovering that the pound didn’t quite reach as far as we thought it would in euros. When you apply the same logic to a much larger purchase i.e. a property, we begin to see how important it is to get the best exchange rate possible.
It might seem easier to just leave the conversion up to your bank, but banks typically offer the worst exchange rate, potentially costing you hundreds of pounds or euros in the process. There is also the cost of the bank’s commission to consider too, which varies from bank to bank, adding even more cost onto the exchange.
Pound vs Euro
The Pound/Euro is one of the most popular pairs of currencies traded on the Forex markets, due to their strength and popularity in the market. There are many economic factors that can alter the exchange rate between the two, such as GDP, inflation, interest rates and much, much more, so it’s important to consider the state of the market before making a sizeable conversion.
Any fluctuations in the exchange rate between the pound and the euro (or any other currency for that matter) can be detrimental, particularly on larger investments such as a property. Even something as small as converting on the wrong day, time or even month, can be the difference between thousands of euros.
As of February 2023*, the exchange rate was 1.12 Euro to 1 Pound, meaning that a property costing €400k would be equivalent to £356,746.37.
Currency Exchange with Smart Currency Exchange
Winkworth have partnered with Smart Currency Exchange to help ensure that you benefit from the very best exchange rates when trading between currencies in Spain.
To get the most out of your money and help to reduce the risk of market volatility, it’s imperative that you work with a currency exchange company that helps you to get the best possible deal for your property purchase. With Smart Currency Exchange, you’ll benefit for the very best exchange rates from a company that is UK-based and authorised by the Financial Conduct Authority (FCA).
Whether you’re looking to complete a one-off transfer abroad, or if you’re looking to make regular currency exchanges, trust in Smart Currency Exchange to help you reduce the risks posed by the fluctuating market rates.
We’ll help you make your property purchase a breeze – just get in touch with us or create your FREE account and let’s get the ball rolling.
*Exchange rate of 7th February 2023. Please check with a reputable currency exchange for up to date figures.