February 22, 2015 at 12:37 am #184949AlanMParticipant
We are buying a property in Mallorca. Due to complete in late March. How do I reduce / minimize the fees that the bank will charge for “accepting” my money from Australia? We are in the Soller, Valdemossa, Deia area. We are going over to open an account in mid-March. I imagine it’s advantageous to have a local branch, even with internet banking. But how do find the best bank? Input very welcome! Thanks. AlanM.
February 23, 2015 at 1:25 pm #184955Mark StücklinKeymaster
You should be able to arrange it so that there are no charges at the Spanish end for receiving money. You need to make sure that you instruct whoever you are using to send the money to charge the fees at that end.
Best bank? Good question. For convenience it helps if there’s a local branch you can go to, and get to know the staff. The impression I get is that Spanish banks are naughty when it comes to fees and commissions.
Best shop around amongst the banks with branches in your area.
February 23, 2015 at 7:54 pm #184957SpeakfreakParticipant
The best exchange rates are from the peer to peer companies such as Transferwise or Kantox which use the “perfect” interbank rate and charge a (relatively) small fee on top- 0.5% as commission in the case of Transferwise. I’ve used Transferwise and I must say it was really easy. I appreciate them being upfront and open with their pricing.
Beware that normal exchange companies may say “zero commission” but they give you an exchange rate that is slightly worse than the “perfect” rate- that’s how they make their money so you’re still paying something (surprise surprise).
Bank-wise you could consider my bank- Sabadell Bank which gives you free banking so long as you pay at least two utilities bills from the account. They’re much more solvent than some of the other banks and they also can work in English. All the forms that I signed, their online website and even their iPhone app can be set to English.
So- basically you exchange the money into euros using Transferwise, paying 0.5% commission and then they pay it into your account at no cost.
By the way- I am in no way benefiting if you use either of these recommendations!
February 23, 2015 at 9:57 pm #184960Mark StücklinKeymaster
Yes, peer-to-peer forex companies are a good option. I use CurrencyFair and so far so good.
February 24, 2015 at 11:00 am #184969PtrParticipant
Interesting to read about Sabadell. They used to charge me 24 euros a month so I left them for Barclays. I use a stockbroker who does not charge me for the transfer but not a good rate.Can it be the case that you might get a better rate sometimes but get charged 15 euros or more for a transfer?
February 24, 2015 at 11:23 am #184970PtrParticipant
sorry per quarter.I was unable to edit that post only a reply option displayed. Sabadell have a Key Account that they say is without charges but suspect it requires a regular income to be paid in. That is little different from Caixa and it requires a lengthy form to be filled in with identification to get a simple bit of information clear ! I was not impressed ! I am happy to leave a few hundred in the account but apart from a few utility direct debits to make otherwise only occasional use.
- This reply was modified 5 years, 7 months ago by Ptr.
March 8, 2015 at 1:48 am #185304AlanMParticipant
Thank you Mark and other respondents.
We are heading to Mallorca next week to sign contracts and open a bank account, among other things. We have made contact with two banks (Caixa and BBVA) and have arranged meetings.
I didn’t phrase my original question well. I have a forward contract with a Forex Co in the UK. They will forward the Euros needed to complete on the property on the 1st of July (the date set for the signing of the deeds). In other words, I send the A$ to the Forex Co on the 1st July and they send the Euros on the same day to a bank I specify. My question is, where should the money normally be sent? To my bank account or the account of the Lawyer or the bank account of the Notary? We will be meeting the Lawyer next week but it would be nice to be better informed before we meet.
March 8, 2015 at 12:29 pm #185312inbarcelonaParticipant
I use Transferwise to transfer money from my British bank account to my Spanish one. They give a great rate of exchange but it takes about 3 days…which is ok for me. I’m happy with their service.
As to bank accounts in Spain…I use Deutsche Bank.
I’m not sure what fees they charge though….I have an “external” account with them in Barcelona as I wasn’t able to provide an NIE number when I opened it.
I think they offer free banking to residents though.
March 21, 2015 at 12:32 pm #185475
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