Buying property in Spain, get best exchange rates for euros

Many of us are tempted to buy a property in Spain – who wouldn't be after all? Sun, excellent food and wine and a more relaxing pace of life, it is no wonder that so many people buy either second homes there or even move there permanently.

But with the current British Pound to Euro exchange rate, would we be crazy to consider such a huge Euro purchase at the moment? The answer is that, if you are careful, buying property in Spain can still be a very good move. Although the exchange rate is far weaker than a couple of years ago, the price of properties in many areas has fallen accordingly so you can still buy a well-priced house without breaking the bank.

However, one area that you really have to pay attention to is how you transfer your money. If you are not careful you could end up paying over the odds. Check the Interbank rate, the exchange rate that the banks use for transactions with each other, and get as close as you can to it. Even a difference of 1% can make a huge difference on a property of €300K to €400K – enough to buy a new fitted kitchen for your home!

The difference between the interbank rate and your rate is the currency broker's margin and on the larger transactions some are willing to drop very low indeed. Even those that offer an already competitive rate of 0.7% to 1% above Interbank rate are usually ready to discuss better rates for larger transactions.