Which currency transfer company? - Page 3

Thanks for the info, we will have to be careful with the amounts then to avoid being caught out for taxes. Do you know if we can use both TorFx and Transferwise or do you advise we stick with just one?

Hi Pat,

You can use as many transfer companies as you like, but most people stick with one or two.  I'd recommend using a broker for moving a large amount, because it's their job to watch the money markets and get you the best rate.

I don't understand Adrian's reference to extra "tax" in Spain, although I can imagine there may well be extra "fees".  When we moved €250k in 2016 for our house purchase, we did it in two tranches of €30k and €220k, and we didn't pay any tax on the transfer.  The only way I can see tax being levied is if there is a taxable gain in the value of the money transfer between leaving the UK and arriving in Spain, but if anyone knows any different please advise. 

Spanish banks did start to charge extra fees from 2017, when EU countries made their banking industries responsible for new money laundering and tax evasion regulations introduced across Europe, and so you do need to be aware of Spanish bank fees.  For example, when we obtained a Bankers' Draft in 2016 to pay at the Notary on completion, Sabadell charged us a flat fee of €100, but I've seen more recent reports of someone being charged €400 and others who have been charged a percentage of the property purchase price.  If you've already committed to a particular bank, there may be nothing you can do about the fees, but it's definitely worth checking what they are, so that you at least know upfront what to expect.

For regular transfers of money to Spain, such as smaller amounts for day to day living, I'd recommend using one of the online accounts, such as Transferwise, as they generally offer better rates than any company where you have to speak to a staff member (customers are effectively paying their salary).  It really comes down to whether you're comfortable with doing your own transfers online.  Many of us on the forum use Transferwise and I know of others who use online banks for currency transfers, such as Revolut, Starling and N26, so whichever you choose, there will probably be someone here who can help if you get stuck.

Kind regards, 

Kim

Hi

One other thing about brokers, or at least with Smart Currency Exchange, you get a personal account manager who you can talk to and get advice on your transfers. You can also select to opt for a Forward Contract where you buy your euros at current rate and they guarantee to pay that rate, I think for anything up to twelve months. I did that and fortunately when the time came to transfer the money, the rate had gone down, so I gained by it. At the end of the day, it is your money and you must do what you feel comfortable with.

Good luck

Neil

I forgot to say that the rate could have also gone up and I would have lost out!

Hi Neil,

I also bought a Forward Contract back in 2016; as you'll know, it protects you from a potential shortfall in your completion funds, should there be a sudden drop in exchange rate.  When I was phoning around for quotes, I used the Transferwise rate to negotiate a better deal, ultimately buying through MoneyCorp.

Kind regards, 

Kim

Hi Kim

Like everything in life, it's a gamble. Some you win and some you loose. Wouldn't it be nice if everybody could win?

Take care

Neil

I recently started using Transferwise, I did a back to back currency exchange comparing how many Euros I got with my existing Moneycorp account, and Transferwise gave me more Euros.

I had intended to transfer my direct debits for water and electricity from Sabadell which I had intended to shut down, to Transferwise, but of course I havent been able to visit Spain to do this.

Has anybody else transferred their direct debits that can talk me through the procedure to see if I can do it remotely please?

Absolutely Neil.  The year before we bought, friends who had moved to Almeria got €1.42 to the £.  We just had to deal with the fall to €1.31 when we bought a year later- but wouldn't we all love to get even that much now?! 🤨😄

Starling bank Euro account sounds interesting.

I can see they are FSCS also so up to 85K is safe.

Now, mid-market rate is a loser in most cases, compared to live rates (typically between 12:00 and 14:00 UK time - before the US markets open)

I appreciate I can only see the Money Transfer option which does, in fact, state the 0.4% transfer fee but it also states a delivery fee? (Is this because it is a money transfer and not a Euro account perhaps?)

Starling, for a transfer of 10K is showing as a current (mid-market) Xrate of 1.1165 = €11,165

Live market rate is 1.1215 and with a broker you would get an Xrate of 1.1200, = €11,200 (€35 better than Starling)

Incidentally, at the same point in time, Transferwise would give you €11,176 (€21 better than Starling)

Hope it helps

Hi. I find Transferwise fantastic. Also if you need help with residency etc  I live in Almoradí and can interpret and can help sort paperwork out

Please  contact me if you need anything