16th July 2024
Banking & Finance Blogs Living & Lifestyle Opinion Property, Home & Decor Spotlight

Spotlight: Save money and simplify your Spanish property journey

Buying or selling a property in Spain can be complex. The process involves navigating local property laws, coordinating with real estate agents, lawyers and notaries, and managing international payments.

One of the biggest challenges is dealing with exchange rate volatility, which can significantly impact the final cost or returns on your property. Favourable rates can save you money, while unfavourable rates can increase costs.

By staying informed about the latest currency trends, you can better navigate these financial waters and potentially save money in the process.

What’s happening with GBP/EUR?

We have seen a sharp appreciation of the GBP/EUR exchange rate in recent weeks, with the pairing being catapulted to its best levels since August 2022.

The pound enjoyed strong support as upbeat UK economic data and signs of sticky inflation caused GBP investors to scale back expectations for a Bank of England (BoE) interest rate cut in May.

At the same time, while the euro also benefitted from some positive Eurozone data, EUR investors continued to price in a June rate cut from the European Central Bank (ECB), which acted as a weigh on the single currency through May.

This rate cut ultimately came to fruition following the bank’s June policy meeting. But with the ECB’s 25bps cut already priced in, the single currency ultimately rallied as the bank raised its inflation forecasts and refused to commit to another cut in July.

Looking ahead, we may see UK election jitters increasingly start to influence Sterling sentiment. GBP investors will be particularly focused on the publication of the Labour and Conservative manifestos and how the parties’ plans for fiscal policy may impact the UK economy.

At the same time, movement in the euro is likely to be determined by upcoming Eurozone data releases, particularly the bloc’s latest consumer price index. If this reports another rise in inflation, this is likely to push back ECB rate cut bets and underpin EUR demand.

The challenges of the traditional property journey in Spain

If you’re buying or selling a property in Spain, you’ll find that managing international payments for property completions can be challenging, involving multiple parties and intricate procedures.

In addition to contending with exchange rate volatility, navigating the legal requirements, and cross-border banking systems add layers of complexity that can be overwhelming and time consuming. The average Spanish property journey often includes coordinating with banks, legal professionals, real estate agents and notaries, each of whom has specific rules and regulations to follow.

These challenges underscore the importance of finding a streamlined, efficient solution to manage international property payments effectively.

Introducing PropertyPay

PropertyPay is a bespoke service from Currencies Direct which revolutionises property completions by eliminating the need for bank visits and streamlining the end-to-end payments process.

PropertyPay is a free, secure and 100% digital service, offering a swift transfer of funds between buyers and sellers – unlike conventional methods that can take many days to obtain cleared funds – and many other benefits.

How PropertyPay revolutionises property completions

PropertyPay helps to cut down on both the fees and hassle both buyers and sellers can face when making a Spanish property transactions. With the support of both parties the solution offers instant fund guarantees and disbursements* between buyers and sellers.

Funds are kept solely in client accounts, enabling direct transfers from buyer to seller without involving third parties such as lawyers, estate agents or notaries. This direct transfer system simplifies the transaction, reducing potential delays and minimising the chances of miscommunication or errors.

If the property transaction fails to proceed for any reason, your funds will remain safely in your Currencies Direct account. This feature allows you to manage your funds as and when needed, providing peace of mind and financial control throughout the process.

PropertyPay is also a 100% digital service, offering a streamlined and secure solution without the need for physical paperwork, bank visits, or unnecessary delays. This digital approach greatly enhances the overall convenience of the property transaction process.

On top of all this PropertyPay is entirely free, helping buyers avoid the costly fees typically associated with banker’s drafts and Order to Move Funds (OMF) transfers. By eliminating these expenses, PropertyPay makes property transactions more affordable and straightforward for buyers.

How Currencies Direct can help 

Currencies Direct offer excellent exchange rates, expert support, and no transfer fees. We also have an exclusive deal with CaixaBank which means you’ll never pay receiving charges in any Spanish bank.

Our dedicated currency experts are on hand to keep you up-to-date with the latest market movements, giving you all the insights you need to time your transfers effectively.

Currencies Direct is also fully licenced to operate as a currency provider within the EU. So you know your money is always covered by the relevant authority.

Pop into your local branch and speak to one of our friendly currency brokers, or email propertypay@currenciesdirect.com to learn more about how PropertyPay could help simplify your Spanish property journey. Or if you have any other transfer needs, get a quote now to find out how much you could save.

*The transfer of funds between buyer and seller can be instant if both have an account with Currencies Direct Spain, E.D.E., S.L.

This a Spotlight Advertising Feature in collaboration with Currencies Direct.

Currencies Direct

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