Saving Money when Buying Property in Spain
Today we’re diving into currency – a critical but often overlooked part of buying property abroad. Alex Radford is joined by Tom Arnold, who brings nearly 20 years of experience in the currency industry. He originally founded Currency Index in 2008 and has now partnered with the well-known TV show and property portal, A Place in the Sun, to create A Place in the Sun Currency.
What Do Currency Exchange company do?
Their mission is simple: to make overseas property purchases as smooth as possible by helping clients:
- Save money on exchange rates
- Manage and execute international payments efficiently
Unlike grabbing a few euros at the airport, this is about large transfers, typically involving property purchases. They work bank-to-bank, not with cash, and operate globally – though naturally, a large portion of their clients are buying in Spain.
How Do They Make Money?
Tom explains that their model is called deliverable FX – they only buy currency once you confirm the transaction, so there’s no speculation involved. This makes their business more secure and ensures you’re getting a live rate at the time of your transfer.
Compared to high street banks (Barclays, Lloyds, NatWest, etc.), clients typically save 3.5–4% on the exchange rate.
Compared to fintechs like Wise or Monzo? Those platforms can offer excellent rates because of low overheads, but they don’t offer the same level of service or human support. If you value having a named account manager and real-time advice, Tom’s team bridges that gap.
Most brokers use similar wholesale markets, so it comes down to service and transparency.
And the Savings?
On a €150,000 property purchase in Spain, you could save around £5,000–£6,000, just on the exchange rate.
When Should You Buy Your Currency?
Only buy your currency when you know you’ll need it.
That typically means:
When you’ve found a property and paid the reservation fee.
Or when you know the completion timeline.
Buying too early carries risks – if the sale falls through, you’re left with currency you may need to sell back (often at a loss).
Can You Fix the Exchange Rate?
Once you know the amount and timeline, you have a couple of options:
Spot Contract: A quick exchange, ideal for things like the reservation fee or 10% deposit.
Forward Contract: Allows you to lock in today’s rate for a future payment (up to two years ahead), with just 10% of the funds upfront.
This is especially useful for:
- Buyers working with completion dates 2–3 months away.
- Off-plan property buyers needing to make stage payments.
- Clients awaiting pension or mortgage funds.
It protects you from exchange rate fluctuations – and ensures your budget stays your budget.
“You’ll know the price of the property – but the cost depends on the exchange rate. Fixing that early gives peace of mind.”
What If You’re Just Getting Started?
Even if you’re months (or years) away from buying, it’s worth opening an account now.
You’ll get access to live exchange rates.
You’ll understand what your actual budget is in euros.
And you’ll have someone to guide you through every step.
Plus, opening an account is free and comes with no obligation to trade.
What is the difference between Spot vs Forward Contracts
Spot transaction: Ideal for paying the 10% deposit immediately.
Forward contract: A good option for securing the exchange rate for the remaining 90%. Forward contracts can be booked more than a year in advance.
Case Study When Buying Off-Plan Property in Spain
Client Case: Signed today, completes in September 2026
Initial Payment: 10% now, nothing until completion
Key Considerations:
Does the client have access to the 10% immediately?
Is their money tied up in investments or elsewhere?
Is it cost-effective to release it now?
Can they commit to a forward contract or wait until later?
Tip: Forward contracts are especially useful now due to global market volatility (e.g. political uncertainty, elections, economic data).
Selling Spanish Property – Bank Drafts vs Transfers
Typical Completion Options:
- Banker’s Draft (still common in Spain, though old-fashioned)
- Bank Transfer (sent to the lawyer’s account)
How A Place in the Sun Currency Helps:
With Bank Drafts:
Their Spain-based team can collect the draft directly from the lawyer.
Deposited into their Sabadell account.
FX and onward transfer handled once cleared.
With Transfers:
Buyer or lawyer can transfer sale proceeds to their Spanish client account.
Funds exchanged and sent to client’s UK or global account.
Note: Charges apply to drafts. Although Tom’s team gets a better deal with Sabadell than individuals, drafts still incur more fees than direct transfers—but savings still beat Spanish bank FX rates (typically saving 3–4%).
Post-Brexit International Payment Pitfalls
Even when you think it’s just a “simple transfer” from your UK bank to Spain—it’s not.
Hidden Costs and Solutions:
Receiving fees: Spanish banks (e.g. Sabadell, Bankia, La Caixa) often charge up to €500+ for incoming UK transfers.
Transfer limits: Exceeding €20k–€50k in a single payment can trigger more fees, depending on the bank.
La Caixa: max €20k
Bankia: max €25k
Sabadell/Santander: €50k
A Place in the Sun Currency routes UK funds through their Barclays Germany account first, converting them into EU-to-EU SEPA payments.
They split large transfers into smaller chunks (free of charge), making sure clients avoid costly limits.
Example: A €700,000 payment may be split into 35 tranches to avoid fees, all arriving same-day with proper references.
Anti-Fraud Safeguards: A Unique Selling Point
Tom highlighted a growing threat: email interception and fake bank details.
Their Solution:
When new payment instructions come in, they independently verify them.
They never rely on bank details sent via email—especially not from the client.
They contact the lawyer or agency directly (not using provided phone numbers) and verify bank details independently.
This makes A Place in the Sun Currency unique in the industry, with a spotless fraud record.
Why Work with A Place in the Sun Currency?
FX broker tailored for property buyers
Fully licensed and regulated with the FCA, HMRC and Bank of Spain
Industry-leading anti-fraud measures
Long-standing presence at A Place in the Sun Live exhibitions
Friendly, experienced, and genuinely focused on helping property buyers/sellers
If you’re buying property in Spain – whether you’re in the early research stage or about to transfer your deposit – speaking to a currency expert could save you thousands.
Contact My Lawyer in Spain about your property purchase
And connect with Tom at https://aplaceinthesuncurrency.com
