Smart Currency Exchange answers readers’ FAQs

 

I’ve just started house-hunting along Spain’s Costa Blanca and hope to have bought something by the end of the summer. I have funds in place in a UK Sterling bank account. I’ve never had to transfer money abroad before so I’m intrigued to know the different ways Smart could guarantee I get a competitive exchange rate when I come to send money to Spain to pay for my property at an unknown date in the future.

Smart Currency Exchange replies:

“Currently, thanks to constantly changing exchange rates you have no way of knowing precisely how many euros your pounds will buy you when need to send payment to Spain at some point in the future. This means you can only have a rough idea of what you can afford to spend in Spain (don’t forget you need to add around 10 per cent to the purchase price for fees and taxes).

At Smart we can get rid of this uncertainty, and effectively fix the price of your overseas property in pounds as well as the local currency, with a forward contract. This works by allowing you to secure an exchange rate with us today which you can access for up to a year in the future, sometimes longer. Typically, we will ask for a 5-10 per cent deposit of the total value of the required transaction to secure the rate.

If you don’t want to commit to a rate and can be flexible on timing, another way to secure foreign currency at a preferred rate is with an Order to buy. This works by your Smart account manager purchasing currency for you only once your preferred and agreed exchange rate is achievable. It’s not uncommon for property buyers to combine an Order to buy with a forward contract, just to spread their chances of getting the best rates.”

For details of property for sale in the Costa Blanca, or all property for sale in Spain, visit the Spanish listings on Rightmove Overseas. One way to save money when buying in Spain is to use a currency specialist when transferring your pounds into euros to complete the purchase of your property. For more information on this, contact Smart Currency Exchange.

To understand the full step-by-step process to buying a property in Spain, collect The Overseas Guides Company’s ‘Spain Property Buying Guide’