You buy in euros, but the bill comes in your own currency
From the moment you decide on a property to the moment you sign at the notary, weeks normally pass, sometimes months. The price in euros is locked when the deposit contract is signed. The price in your own currency is not. It follows the exchange rate right up to the day the money is actually exchanged.
So currency is not a detail at the end of the process but part of the budget from the start. If you have a ceiling in your own currency — and most people do — you need to know what it corresponds to in euros, with room for the rate to move against you, and with the costs on top of the price included.
Why the rate weighs more than the negotiation
A discount applies to part of the price. A currency movement applies to the whole amount. That is the entire difference.
If you negotiate the price down and your currency weakens at the same time in the weeks before completion, the whole gain from the negotiation — and more — can be gone. Conversely, a move in the right direction can give you more than any negotiation would have. The point is not to guess which way it goes. The point is that you should not have to guess.
We give no rates, fees or example amounts here. The rate changes every day and fees depend on amount, provider and timing. Run the numbers on your own deal with current figures from the service you intend to use — we help you set up the calculation.
How a large transfer works
- Open a Spanish bank account early. It requires an NIE number and takes longer than you think. The purchase price, the taxes and the running costs are paid from it.
- Warn your bank at home. An unusually large foreign payment often gets stuck in the bank’s own checks. A call in advance, with an explanation and documents, saves days when it is urgent.
- Exchange well before completion. The notary wants to see that the money is in place in euros. A transfer that is “in the system” on completion day is not enough — the appointment gets moved.
- Plan every instalment. Reservation, deposit and final payment happen at different times. Each needs to be planned, not just the last.
- Never pay from someone else’s account. The money must come from an account in your own name. Otherwise the deal stalls at the notary and the bank until it is cleared up.
Your bank or a currency specialist
Your bank can exchange your currency into euros. The question is what it costs, and that rarely shows where you look. The fee the bank shows is often small. The real cost lies in the difference between the rate the bank gives you and the rate banks trade at among themselves — the margin is built into the rate and appears on no invoice.
Specialist currency services normally work with smaller margins, let you speak to a person and can offer forward contracts. That is why most people buying abroad use one instead of their ordinary bank. But do not take it for granted:
- Ask for a quote from the bank and from one or two currency services on the same day, for the same amount. Only then are you really comparing.
- Check that the service is supervised by a financial regulator within the EU or the UK, and that your money is held separately from the company’s own.
- Ask how they handle the documentation of where the money comes from. A serious provider asks questions. One that does not, you should avoid.
Forward contracts — locking the rate between arras and notary
A forward contract means you agree today on a rate for an exchange that takes place on a set date in the future. Once the deposit contract is signed you know exactly how many euros you must pay and roughly when. With a forward contract you also know exactly what that is in your own currency. The currency risk between arras and completion is gone.
What you give up is the chance of the rate moving in your favour in the meantime. What you avoid is the risk of it moving against you. You are usually also required to put down part of the amount as security when the contract is taken out, and the rest at maturity.
Whether it is right for you depends on how large a currency move your budget can absorb before the deal no longer holds. If the answer is “a small one”, you should lock. If the answer is “it does not much matter”, you can wait. Decide before you make an offer, not after — see the buying process step by step.
Anti-money-laundering checks: you must be able to show where the money comes from
Spanish banks, notaries and currency services are obliged to check where the money in a property purchase comes from. It is not a suspicion against you — it is the same rules for everyone, and they are applied strictly. If you cannot show the source, the deal stops.
What is needed is documents, not explanations:
- Sale of a property at home: the sale contract and the completion statement from the agent or solicitor.
- Inheritance: probate documents and the distribution of the estate.
- Gift: a deed of gift and bank statements showing the transfer.
- Savings: bank statements showing how the capital was built up over time, ideally with tax returns.
- Loan: the loan agreement and proof of disbursement.
- Sale of a company or securities: contract notes and agreements.
Gather it before you start looking. Some documents need translating, and that takes time. The clearer the paper trail, the faster the check — and the calmer the days before the notary.
Want to go through your payment plan before you start looking? Get in touch, or send a search brief and we take the currency question from the start.