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How to pay in £,$,¥ Pounds, Dollars, Francs, Yuan for my € Spanish property?

How to transfer my cash efficiently to Spain?

 

Many foreigners: British, Canadian, American, Swiss, Israeli, Moroccan, Chinese, Russian, have a different currency at home than the Euro

 

Long term, it is a very good diversification strategy to have some assets like real estate in another country, and furthermore in another currency, than in your home country.

Most of your assets are in your home country but:

• Economic cycle is different in Spain than in your home country
• Inflation is different in Spain than in your home country
• Monetary policies are different in Spain than in your home country
• Euro is used by more than 300m people in Europe

 

 

In order to help you check the long-term evolution of the main currencies against Euro, we have created a table with up to date Sterling, Ruble, Swedish Krona, Norwegian Krone, Dollar, Yuan and Shekel long-term evolution against Euro.

Check what happened to the Sterling after the Brexit vote in 2016. For sure, the British who bought some properties in Spain before the Brexit vote were pleased of that diversification.

If you are buying a property in Spain, in the short term, this means that you will have some currency volatility and some costs to cover if you are investing from outside the EU zone. Have a look at this paper on why currencies are volatile and how you can manage it.

In 2021, about 15% of the properties bought by foreigners in Spain are bought by the British.

After feeling the effect of the Brexit vote that happened on the 23rd of June 2016, British were less active on the Spanish real estate market and the pound lost 10% of its value vs the Euro, Check a chart on the Sterling evolution vs Euro here from Reuters. Of course, in 2020, activity was much lower due to Covid. But end of 2021, activity was really strong. Anyway, they remain by far the first nationality in terms of purchases done by any foreign country.

Foreigners are buying their property in Euro while having their home currency in their bank account.

 

Book your free appointment with the currency hedging specialist

 

What are the solutions for foreigners buying real estate in Euro with a different home currency?

1. Ask their bank to exchange their home currency into euro and to transfer the funds to Spain
2. Benefit from lower exchange rates thanks to the online platforms like Currencytransfer.com to convert their home currency into Euro and to transfer the funds to Spain

 

HowtobuyinSpain negotiated with them so that customers get a preferred rate for their property purchases.

 

What are the biggest advantages of the later?

• No commission system, much lower final cost than with a bank taking a commission for converting your currency into Euro AND for wiring the funds to Spain
• No hidden fees: the exchange rate includes a small margin form mid-bank rate
• Get the best price available at any time on the market: Many well-known FCA regulated currency providers compete for the flow
• Segregated account: your money is on a transit account bearing your name of a FCA regulated currency entity, it is never on the balance sheet of the platform itself.
• Transfer the correct amount in the local currency
• A dedicated relationship manager will help you out to manage your hedging the most efficiently as corporations do.
• You can instruct your Relationship Manager to wait for your precise exchange rate, (to gain more or to lose less)
• If your account is open, you can lock a rate once your account is open and transfer the money after

 

 

Why Currencytransfer?

For all the foreigners looking to buy with non-Euro currencies as Sterling, American Dollar, Canadian Dollar, Shekel, Yuan, Ruble, Swedish Krona, Norwegian Krone and other Asian currencies,… when you are buying a property in Euros, you will need to exchange your currency into Euros and transfer the money to buy your property. Most of the time, this involves huge bank costs: up to 5% and mostly close to 3%.

Have a look at our partner based in London: Currencytransfer.com! We have negotiated with them the best service and the best rates for our customers. They take a very low commission rate and transfer the funds without any costs. You can create your account for free and lock your exchange rate into Euros even before wiring funds with your local currency. Have a look at their website and don’t forget to mention “HTBIS” in the field “Where did you hear about us?” to get the best rates we negotiated with them for the members of our network.

Ask our partner what is the most efficient strategy to hedge your currency risk

How does it work in practice?

1. Open your free account on Currencytransfer.com and mention HTBIS code in the field “Where did you hear about us” to get the best rates,
2. Lock an exchange rate between your local currency and Euro (or instruct a threshold exchange rate to be traded later)
3. Wire the funds in your local currency on your segregated account in a top tier bank
4. Receive the funds in Euro on your account in Spain, on the account of your lawyer,…

 

Let’s have a look at an example of trade with CurrencyTransfer.com

Let’s say you’re a British looking to purchase your second home in Spain at a cost of €200,000.

• • STEP 1 You book a deal on the CurrencyTransfer platform to buy €200,000 at an exchange rate of €/£ 0.8800. This will cost you £176,000.
  • STEP 2 Behind the scenes, your selected FCA payment provider buys €200,000 from one of its market counterparties to ensure they have funds available to honour your deal.
  • STEP 3 The next step is to pay your winning payment provider the £176,000. You pay this directly to their Segregated Client Account. These are all secure, separate client accounts, held with stable, tier-1 banks (such as Barclays or RBS). This ensures that your money is safe from any business liabilities that the payment provider could be affected by.
  • STEP 4 With your payment of £176,000 now safe in the payment provider’s Segregated Client Account, the broker now needs to pay the €200,000 that you booked across to your Spanish lawyer, notary or even your own Spanish account on the date that you have chosen.
  • FINISH Once the payment has been delivered to the beneficiary the transaction is complete

 

As of January 2022, here is the business update from Currencytransfer

• • Clients: 6,500+
  • Currencies: 28
  • Value of the currencies exchanged by the group since start: more than £3 bn
  • *Average saving: £1,260
  • Proud to have saved our clients over £15 million in hidden currency fees

 

 

Other uses? Transfer cash (minimum €10.000) to relatives everywhere around the world.

 

Looking for a lawyer, an architect, a property hunter in Spain? Ask us directly!

 

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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Other nations’ profiles: What are the ideal Spanish properties for Belgians Chinese Dutch English French Germans Italians Moroccans
Romanians Russians Swedish?

British property buyer’s guide in Spain

Find your free pdf report regrouping all our tips and all this information at the end of this article

The 10 things you should know before buying your Spanish property!

We make it easy for you to buy your dream property in Spain thanks to our knowledge and our network of local partners.

How active are the British on the Spanish property market? What properties do they like? What are the most loved Spanish regions by the British? How much do they pay? Do they prefer new build properties or resale? Do they need a mortgage for financing? How should they buy? What are the 9 steps to buy a property in Spain?

First, let’s analyse the Second Home purchases by the British in Spain

Both foreigners and Spaniards are very active on the property market in Spain.

In 2018, foreigners bought close to 100,000 properties in Spain.

Spaniards and Foreigners are buying the highest number of properties in 2018 vs any year since the crisis of 2008, have a look at our chart: more than 580,000 properties were bought, 15% of the purchases by foreigners.

Read our most recent article about that: Who are the foreigners buying real estate in Spain?

100,000 properties bought by foreigners in 2018. Why foreigners are so active in Spain?

We have listed at least 13 reasons why foreigners are buying properties in Spain. Of course, you’ll find sea, sun, beaches, nice quality of life… but investment return is important as we explain here: What return will you make on your Spanish Property in 2019?

How active are the British on the Spanish Real estate market? 15,300 properties bought in 2018

According to the “Consejo General del Notariado” in Spain, the English are buying 41 properties per day, or about 15,300 for the last 12 months up to December 2018, in Spain.

It is nearly 10 times more than in 2008.

How much do they pay for their properties? €1,649/m²

The price they pay on average is €1,649 per square meter. They pay just a little bit more than other foreigners buying properties in Spain. Check the evolution over the last 12 years.

Of course, depending on the region, price paid by foreigners per square meter is changing a lot. The Balearic Islands is the most expensive region if you want to buy a second home in Spain. Another factor factor to take into account for the price is if the property is a new build property or a resale.

Real estate prices in Spain are not any more in crisis

we have a stable and even growing market in many Spanish regions

What are the most loved Spanish regions by the British?

The English are buying in the suspected regions where foreigners are the most active: the Costa Blanca and the Costa del Sol. Those two Costas are in Andalusia and in the Valencian Community and represent nearly 40pc of the transactions done by the English. Other important regions are the Canary Islands and Murcia.

Where are foreigners buying in Spain? In which Regions, in Which Cities?

Foreigners are actively buying properties in many Spanish cities: for Alicante, Tenerife, Ibiza and Palma de Mallorca, Malaga and Girona, they represent more than one transaction out of 4.

Here are the most active regions

Here are the most active cities

If you want to read more on the subject: Which are the top 10 Spanish cities where foreigners are buying properties?

What properties do they like? Small or big? 100m²

Most of the the English, 1 out of 3 buy properties bigger than 100 square meters. If you compare those numbers with other nationalities, the English do buy bigger second homes in Spain than other foreigners.

Do the British prefer new build properties or resale? Resale

15% of English are buying a new build property in Spain. This is inline with other foreigners.

Looking for a new build property? Discover the best new build projects available in Spain on our portal.

sold directly by renowned developers at their best prices.

EXCLUSIVE LAUNCH OFFER: Purchase any property and receive €3,000!

Looking for a resale? We have many local property finders ready to help.

Let’s have a look at the 6 reasons why a personal real estate shopper in Spain will be very helpful for your property search.

Property finders in Spain

Do the British take a mortgage for their Second Home? €179,000

Only 13% of the property purchases done by the English in Spain are done with a mortgage. For the transactions with a mortgage, the mortgage size is €179,000. Other foreigners take €133,000 mortgage on average.

If you want to learn more on how to get the best mortgage deal, read our seminal paper: Your definitive guide to your Spanish mortgage rate: How to apply, how to get the best rates?

If you want to directly ask a free quote to our partner, don’t hesitate. Ask our partner a mortgage quote for a Spanish property.

Buying in Spain is easy, once you found your property, here are the 9 steps to your Spanish Property

1. Get your NIE “Número de Identificación de Extranjeros”, read our article on this: “Your ultimate guide to your NIE number“.

2. Find a lawyer speaking your language and Spanish: Looking for an property lawyer in Spain? Check all our partners here!

Find your property lawyer in Spain

3. Open a Bank account

4. Do you need a mortgage? Your Spanish Mortgage: How to apply? How to get the best rates?

5. Sign the “contrato de Reserva”

6. Important checks of the property with experts

7. Get your mortgage confirmed

8. Sign the “contrato de Arras”

9. Go to the Notary for signing the contract for the purchase of the property

If you want to look at our detailed article: ” The 9 Steps before buying your Spanish property“.

How much does it cost to buy a property in Spain?

The short answer is 10% to 14% of the property value. Read our detailed article on that subject: What is the real cost of buying your Spanish Property?

How much does it cost to be an owner of a property in Spain?

The short answer is around 1% of the property value per year. Learn more in our detailed article: What is the real cost of owning your Spanish property?

How much does it cost to live in Spain vs UK?

Download our exclusive pdf report: British property buyer’s guide in Spain: what are the ideal Spanish properties for the British? Where do they buy? How much do they pay?

Register to our YouTube channel in English and get all our useful animated video – click on the picture

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

The post British property buyer’s guide in Spain appeared first on How to buy in Spain.

Who are the foreigners living in Spain in 2018?

Get all our useful animated videos and register to any of our YouTube Channel in your mother language:

What is the current population of Spain in 2018?

As of June 2017, 51.2m people live in Spain: 22.8m are Spanish men and 23.7m are Spanish women. Spain has 4.7m registered foreigners living in Spain as of January 2018. Let’s have a look at the different origins of the communities living in Spain: of course, we will find the usual suspects: Europe and Africa due to the long history they have with Spain and due to the proximity of those regions. Of course, South America is on the list as well as Spain share a long history and the language with many of those countries.

If you intend to live in Spain, remember you may need a Visa or if you want to buy a property, you will need a NIE number, even if you are European. Have a quick look at our articles on that:

• Golden Visa in Spain: Your ultimate guide to your Golden Visa!
• Your ultimate guide to your Spanish NIE number.

Who are the foreigners living in Spain, from which region of the world do they come?

1. Europe 2.1m people
   1. European Union, 1.8m people
   2. Europe (outside Union) 0.3m people
2. Africa, 1.1m people
3. America, 1.2m people
   1. South America, 0.8m people
   2. Central America & Caribbean, 0.3m people
   3. North America, 0.1m people
4. Asia, 0.4m people

Have a look at our infographic with the different regions of the world

Who are the Europeans living in Spain in 2018?

1. Romania has the biggest community with 0.7m citizens
2. England and Italy have 0.2m citizens each
3. Bulgaria, Germany, Ukraine, France Portugal, Russia are the next countries with 0.1m citizens each
4. Poland, Netherlands and Belgium follow

Who are the Africans living in Spain in 2018?

1. Morocco has the biggest community with 0.8m citizens
2. Senegal and Algeria follow with under 0.1m citizens each
3. Nigeria has less than 0.05m citizens

Who are the Americans living in Spain in 2018?

1. Colombia has the biggest community with 0.2m people
2. Ecuador, Bolivia, Venezuela, Brazil, Paraguay, Honduras, Argentina, Dominican Republic, Peru follow with under 0.1m citizens each
3. Cuba and the United States of America have less than 0.05m citizens

Who are the Asians and other nations living in Spain in 2018?

1. China has the biggest community with 0.2m citizens
2. Pakistan has a community of 0.1m citizens

Have a look at our infographic with the different nationalities living in Spain, close to 120 countries!

What are the top 5 Spanish Cities for real estate purchases by foreigners in 2018?

Remember our paper on what are the top 10 Spanish cities where foreigners buy property?

The top 5 Spanish Cities are (up to June 2017)

1. Alicante with #18.847 transactions (23% of transactions by foreigners)
2. Malaga with #10.761 transactions (13% of transactions by foreigners)
3. Barcelona #7.332 transactions (9% of transactions by foreigners)
4. Madrid #6.301 transactions (8% of transactions by foreigners)
5. The Balears #5.910 transactions (7% of transactions by foreigners)

Apart from Alicante at the first place, all the other cities are in the top 5 for the airport ranking.

Foreigners love to work in Spain: remember our paper: What are the top Spanish cities for foreigners looking to work in Spain?

Have a look at our last papers related to the foreigners real estate transactions in Spain:

• What are the most loved Spanish regions for the foreigners’ properties: British, French, German,…? Check our ranking for the top 12 countries
• Who are the foreigners buying properties in Spain? Where do they buy? What price do they pay?
• How to buy a property in Spain as a foreigner?

Check our resources before booking your holidays in Spain

Find a lot of useful information, hours of sun per year, Unesco sites in Spain, transport network, and much more on our page “10 reasons why you should want to buy a property in Spain”

Find all our papers and infographics on the Spanish Costas with all the useful activities:

Our infographics on city trips in Alicante, Malaga, Madrid and Barcelona:

Before picking a city for your holidays, have a look at the monthly weather statistics on the top 20 Spanish Cities here:

Last but not least, read all our “Summer articles for enjoying all the nice places of Spain”

Source: Instituto Nacional de Estadística

Looking for a lawyer, fiscal expert, architect, property hunter,… or any expert in Spain? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full team of HTBIS here

The post Who are the foreigners living in Spain in 2018? appeared first on How to buy in Spain.

Madrid, the capital of Spain, is the third biggest city in Europe behind London and Berlin.

The capital of Spain is one of the cultural centres of the country with its museums like the Reina Sofía, its theatres like the Teatro Real or the majestic Palacio Real Madrid. Even though it might not have the sea like Malaga or Alicante, neither it had a genius architect that changed the shape of the city as Gaudí did for Barcelona. Its location, right in the centre of the Iberian Peninsula, makes any corner of the country available with less than 7 hours drive.

Why would you buy a property in Madrid?

Its mix of Continental and Mediterranean climate makes the weather in Madrid more tempered than most of the other European capitals. In an interview with the Spanish newspaper “El Boletín”, the commercial director of Lucas Fox International Properties in Spain, Rod Jamieson, said “everyone loves Madrid, its weather and architecture together with its gastronomy, its theatres… foreign investors are discovering Madrid, and now, when people talk about Spain, they don’t only think of Barcelona, they also think about the capital and its charming atmosphere”.

These reasons have attracted property buyers from all over the world to Madrid. Among them are people from the USA, Western Europe and the United Arab Emirates. Most buyers from the US are Spanish speakers, who already have houses in Miami and are looking for those in Europe. They choose Madrid because people there also speak Spanish.

Another factor could be the cost of living in Madrid, which is way lower than in many capital in the world, while at the same time salary are strong.

Who are the buyers? British, French, German, Russian

The Brexit has also caused a boom in the real estate market, and more British people are buying houses in the capital of Spain nowadays. Joaquín Guisado Vélez, a real estate expert of Navacasa, points out that:

“right now British buyers represent the 20% of the market. French, German, Russian and Italian follow behind. Also there has been an increase of Chinese buyers compared to 2011.”

Foreigners are active on the market as you compare price evolutions of Spain vs other international markets. Check it on our trend section: the property prices in Spain are still much lower than the prices paid 10 years ago!

Have a look at our 10 Year ranking of Spain vs all other European markets as of September 2016:

What about the Business districts?

As the capital of the country and the third biggest city in Europe behind London and Berlin, Madrid has three well-marked business districts: Centro, Chamartín and Nuevos Ministerios. Most of these offices have been there for a long time, so they don’t have a direct effect on the residential real estate market.

There are new office buildings blooming in the suburbs of the capital. Because of them some of these areas are developing their facilities and public transportation. There is also an increase in the apartment prices.

How much does a property in Madrid cost?

The square meter price in Madrid is around 2.600€, and it is expected to grow 5% this year. But, of course, Madrid is a big city, with more than 3 million people, and price depends on the location, it could be less or more expensive. Let’s have a closer look at it:

• The centre of the city is more expensive than the suburbs, with a price at around 3.500€ per square meter.
• Salamanca, Chamberí and Chamartín have an average price of 4.000€ per square meter.
• Other non-centrical districts like La Latina, Villa de Vallecas and Carabanchel are among the cheapest districts, with prices around 2.000€ per square meter.

Check the real estate prices of Madrid vs Spain

As you surely read it in our news published in January, for the first time since 2007, Real Estate returns are back in positive territory: the expected return end 2016 was 8,4% according to the Central bank of Spain.

Where will you find some of the nicest neighbourhoods?

Salamanca, Centro, Chamberí and Chamartín are the most centrical districts. You will find all the facilities to enjoy an easy life: some of the best museums and theatres, hospitals, schools, restaurants and bars, supermarkets, etc. These centrical districts also have the best options for transportation and they are not far from train station Atocha. From here it is easy to get to every corner of Spain! It is the centre of the high-speed railway system “AVE”, you can get to Sevilla or Barcelona in only three hours! Read more on that in our article: 25 years of fast train in Spain.

The district of Retiro is still a good choice for those looking for a place close to the centre. It’s laid-back life makes it a perfect place for those, who want to be near to all the facilities that the centre offers and at the same time to live in a quieter neighbourhood. The park of Retiro is the most popular green area of Madrid.

For those looking for tranquillity and willing to live not far from greenery, Moncloa and the Northeast area of the city are the perfect districts. Public transports bring you to the centre of the capital.

If you want to invest in the Spanish real estate market in Spain, don’t hesitate to read our special report with the 10+ reasons why you should have a look at the Spanish property market.

Do you want to check the yearly weather statistics in Madrid before buying? Check our Infographic.

Have a look at our ePostcards before planning your next holidays in Spain.

Get your insights right to your mailbox? Register for our newsletter: https://howtobuyinspain.com/en/newsletter/

Looking for an expert in Spain? Ask us directly!

Raimon

Senior journalist and writer at HTBIS

Check the full HTBIS team here

The post Real estate foreign investors are discovering Madrid appeared first on How to buy in Spain.

England, Germany = more than 50% of tourists

England is first country with 28,4%, followed closely by Germany with 24,2% and then France, Italy and Sweden each represent 6% of tourists.

Spain is the number one destination in Europe for tourists

Spain is without any doubt the number one destination for holidays in Europe. For the last yearly statistics available from Eurostat, Spain represented 20% of all the nights spent by tourists. Italy and France are respectively second and third with 15% and 10% of the tourists. Have a look at our news “What are the most favourite tourist destinations in Europe” to read more on that.

United Kingdom, France and Germany are the biggest buyers of real estate in Spain

This is not a surprise to us that England and Germany are the first two countries in terms of tourists flying to Spain. If you compare those statistics to our recently released infographic on “Who are the foreigners buying real estate in Spain?” you will note that United Kingdom is the first country with 17.7% of the foreign buyers during the last year (data available up to September 2016), followed by France with 8.9% and Germany and Sweden with each 7% of the purchases. So, you find the same countries in both rankings.

First people take some holidays then they love it and they come back to buy a property?

Foreigners bought 17% of properties in Spain during the last year.

As you can see in the chart, Foreigners bought 17%(green line, right scale), i.e. 77.000 properties (dark blue columns, left scale) of all the properties sold in Spain last year (red line, left scale). You surely noticed that the number of transactions per year (red line, left scale) is spiking. As you are one of our readers, you surely know why! If not check our “10+ reasons why you should buy in Spain now“.

Do you want to know where foreigners are buying in Spain?

Source: Instituto Nacional de Estadistica, Coyuntura Turística Hotelera, 23 February 2017.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post Where are the tourists coming from to visit Spain in 2017? appeared first on How to buy in Spain.