Noticias de la Cámara
Thinking of buying a holiday home abroad this year? | Smart Currency
08/07/2025
Anyone in the process of buying property overseas will, at some point, need to make a foreign transfer to pay for their property.
If you’re first thoughts are something along the lines of ‘eek, sounds confusing’, you’re not alone.
Smart Currency Exchange can help simplify the process.
The cost in pounds of your dream property will depend on the current exchange rate when you agree to the purchase. However, not every buyer realises that this cost can increase due to fluctuations in the currency markets when you come to completion.
The same applies if you’re selling a holiday home and returning the money to the UK.
Currencies change all the time
It’s not uncommon for currency exchange rates to move up to 20% a year. In fact, currency exchange rates move every half a second.
For example, if you’re planning on buying a home in Spain for €250,000 when the GBP/EUR is 1.15, this purchase will cost you £217,391. But, if that rate falls to 1.12 – which it could following a surprise data release, like the recent UK interest rate rise – your dream home in Spain will end up costing you an additional £5,822, which you might not have budgeted for.
These fluctuations can make budgeting for an overseas property difficult. Which is why working with a specialist like Smart can really pay dividends – forgive the pun!
The process, made simple - How can I make a transfer?
The mechanics of buying a property in a foreign currency are simple. With Smart, there are six key steps to making a transfer for a property purchase.
- Speak to your Personal Account Manager about your requirements to understand your budget and work out the transfer solution best suited to you.
- Your Personal Account Manager will quote the exchange rate according to live rates, they’ll also tell you how much your funds will be worth in euros, dollars, or whatever currency you’ll be buying in.
- When you agree to the quote, your Personal Account Manager will purchase the currency on your behalf. It’s then that your transfer becomes legally binding.
- You will then receive confirmation (via email) that your trade has been booked, along with payment instructions.
- You then tell Smart Currency where you want the money to be sent to. We can pay it into your own overseas bank account or straight into the solicitor’s account when buying a property abroad.
- The payment can be completed within as little as 24-48 hours.
All of these steps (and more) are outlined in our Property Buyer’s Guide to Currency which you can download for free by clicking here.
Budgeting using a Forward Contract
A forward contract is a simple, yet effective way to lock-in the cost of your purchase in pounds from the start. When you lock-in your exchange rate, you’ll have the peace of mind knowing that the cost of your dream property will never change.
It’s not something offered by a regular bank, so we’d encourage you to download our free guide for a more in-depth introduction to sending money overseas, alongside top tips on how to make your property purchase safely and securely.
Should you have any questions about the guide, your budget or to discuss an upcoming payment, give Smart a call on +44 20 7898 0541 and mention the Costa del Sol Team for a free consultation. Alternatively why not register with Smart Currency and someone will be in touch soon after.
