Foreign currency issues

Buyers and owners of Spanish property need to consider forex issues

Introduction to forex

Spanish property is priced in Euros and most British buyers have their funds in Pounds Sterling. This means they have to buy Euros before they can buy their Spanish property. Turning pounds into Euros can be a very expensive affair if you are not careful.

Assuming that you are starting off with Pounds Sterling (or any other non-Euro currency for that matter), then the timing of your Euro purchase and who you buy them from can have a major impact on the overall price that you pay in Pounds Sterling.

Our experience has shown us that many British buyers of Spanish property both overpay for the Euros they need to buy their property and take unnecessary risks with exchange rates once they have taken on a Euro exposure (obligation to pay Euros in the future). In the following sections we explain how purchasing Euros can have a big impact on the price in Pounds of your Spanish property.

+ What are exchange rates?

© Mark Stucklin (Spanish Property Insight)

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