The best way to move a large sum abroad to pay for a home is usually a regulated currency specialist, not your bank. Banks commonly add a margin of 2% to 4% over the mid-market exchange rate, while specialists are typically well under 1%, and on a purchase of €250,000 the gap can run to several thousand euros. The rest of the job is timing: money is needed at the reservation, at the deposit contract and at completion, and anti-money-laundering checks require documents to prove where the money came from. This guide shows how to compare options, the timeline of payments, how to protect yourself and a worked example in euros, pounds and dollars. It applies to purchases in Spain and Portugal. For the costs themselves, see Spain property buying costs and Portugal property taxes.
Why does the exchange rate matter so much?
On a small payment a poor rate costs a little. On a property purchase you may convert hundreds of thousands, so each percentage point is worth thousands. The exchange rate is not shown as a fee, which makes the cost easy to miss: the bank quotes a rate that is worse than the mid-market rate, and the difference is its margin.
How do banks, currency specialists and apps compare?
| Option | Typical margin over mid-market | Strengths | Watch for |
|---|---|---|---|
| High-street bank | About 2% to 4% | Familiar, no new account | Opaque rates, wire fees, receiving-bank fees |
| Currency specialist (broker) | About 0.3% to 0.7% for large transfers | Account manager, forward contracts, limit orders | Check regulation and who holds client money |
| Transfer app | Near mid-market plus a small transparent fee | Good for small payments such as the reservation fee | Limits on size and little rate locking |
These margins come from guides published by agents and lawyers in 2026, and they are not guaranteed. Ask each provider for the exact rate they will give you on the day, for a specific amount, and compare it with the mid-market rate on a neutral source such as the ECB reference rates.
How much can you save on €250,000?
| Provider type | Margin | Cost on €250,000 | Approx. in £ / $ |
|---|---|---|---|
| Bank (low) | 2% | €5,000 | ≈ £4,220 / $5,600 |
| Bank (high) | 4% | €10,000 | ≈ £8,440 / $11,200 |
| Specialist (low) | 0.3% | €750 | ≈ £630 / $840 |
| Specialist (high) | 0.7% | €1,750 | ≈ £1,480 / $1,960 |
The potential saving is therefore about €3,250 to €9,250. A conversion is only needed if your money is not already in euros. If your funds are in euros, the question is mainly about wire fees.
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
When do you need to send money?
- Before house-hunting: open the account with the provider you choose. Identity checks and registration can take a few days.
- Reservation: typically €3,000 to €10,000 when you agree a property. Small amounts can go through an app or card.
- Deposit contract: about 10% of the price, due within a few weeks of the reservation. In Portugal the deposit on the promissory contract is also commonly 10%, and sometimes higher for non-residents.
- Completion: the balance plus taxes and fees. In Spain the balance is usually paid at the notary by banker’s draft from a Spanish bank account.
Send each payment at least five to seven business days before the deadline so that it has time to clear, and start with a small test transfer to confirm the account details.
What is a forward contract?
A forward contract locks an exchange rate for a future payment, usually for up to 12 months and often with a small deposit. It helps when you know you will have to pay a large balance at completion in several weeks, because it removes the risk of the rate moving against you. It also removes the chance of a better rate, so decide what level of certainty you want. Ask the provider to explain the deposit, what happens if the rate moves, and what happens if the purchase falls through.
What documents prove the source of funds?
Spanish and Portuguese banks, notaries and the transfer providers must check where the money came from under EU anti-money-laundering rules. Prepare the documents early, because delays here can hold up completion:
- Proof of the source: sale of a property, pension lump sum, savings, inheritance or sale of a business.
- Bank statements that show the history of the money.
- Your passport and NIE or NIF, or proof that the application is under way.
- Confirmations for every transfer in the trail.
Send money from an account in your own name, through a regulated provider, into your own account in Spain or Portugal. Moving money through third parties raises questions that you do not want to answer on completion day.
How do you protect yourself from payment fraud?
- Verify account details by phone with your lawyer, using a number you already trust. Email instructions can be intercepted or faked.
- Use a regulated provider. In the UK, check the firm on the FCA register. Elsewhere, check the equivalent national register, and ask how client money is protected.
- Send a small test amount first.
- Keep every receipt and confirmation.
- Be suspicious of pressure. A request to pay quickly to a new account is a warning sign.
Which taxes depend on how you moved the money?
The exchange does not itself change the purchase taxes, but you must be ready to pay them from euro funds shortly after signing. In Spain the buyer files the purchase tax within about 30 working days. If you later sell as a non-resident, the buyer withholds 3% and pays it to the tax office, so euros must already be in Spain. For Portugal, IMT and stamp duty are paid before the deed. See non-resident property tax in Spain.
What is the step-by-step plan?
- Fix your budget from the cost guide and the Spain or Portugal calculator.
- Get quotes from at least three providers for the same amount and day.
- Open the account and complete the identity checks before you make an offer.
- Prepare the source-of-funds documents.
- Consider a forward contract once you sign the deposit contract.
- Send each payment early and verify the account by phone.
We do not recommend a specific provider on this page, and it contains no affiliate links. The whole process is in the guide to buying property in Spain.
How do you compare quotes properly?
Ask every provider for the same transfer, with the amount, the currencies and the delivery date, and compare the euros that will actually arrive. Look at the exchange rate, the fee and any intermediary charge together, because a low fee can hide a weak rate. Compare the rate with the ECB reference rate on the day to see how big the margin is. Get the quote in writing and check that it can be fixed for a few days while you decide.
What records should you keep?
Keep every transfer confirmation, the exchange-rate record and the proof of where the money came from. Your lawyer and the notary may ask for them, and they help when you calculate the gain on a later sale. Avoid paying large sums in cash and do not pay a seller outside the process your lawyer has agreed.
Frequently asked questions
Is a bank or a currency specialist better for a property purchase?
For a large transfer, a regulated currency specialist is usually cheaper than a bank, with margins typically under 1% against 2% to 4%. Compare real quotes on the day, because the figures vary by provider and amount.
How long do international transfers take?
Euro payments inside the SEPA area typically take about one business day, and conversions take one to three. For a large amount, allow five to seven business days before the deadline so it clears.
Do I need a Spanish or Portuguese bank account?
It is not a legal requirement, but it makes paying taxes and bills much easier, and notaries commonly expect the balance to come from one.
What is the safest way to receive payment details?
Confirm the account number and name by phone with your lawyer, using a number you already have, and send a small test payment first.
Should I use a forward contract?
It locks the rate for a future payment, often for up to 12 months. It protects you from a rate move but also removes the upside, so decide how much certainty you need.
Sources
Official sources (check these for the current rule):
- European Central Bank: euro reference rates
- Consejo General del Notariado (Spanish notaries)
- Portal das Finanças (Autoridade Tributária e Aduaneira, Portugal)
- UK Financial Conduct Authority register (check a UK-regulated firm)
Also cross-checked against published guides, because regional tax rates are spread across many agencies:
- Property Investment Spain: transfer large sums to Spain
- Mediter: sending money to Spain to buy property (2026)
- Portugalist: buying property in Portugal, 14 steps (CPCV deposit)
Author: David Mateo. Professional review: this guide has not yet been reviewed by a licensed lawyer or tax adviser; when it is, the reviewer will be named at the top of the page.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 15 October 2026.
