Money Matters

Currency Exchange rate has always been important when purchasing a property in a foreign country to some extent or other. In the past we used to use our own bank to transfer funds abroad as they usually gave us the best rate. This has now all changed. These days there are a number of Currency Companies offering an even more competitive rate that saves us money.

Since the introduction of the Euro a lot of countries obviously do not have the same need of currency exchange, but since Tenerife has a lot of UK owners, both buying property and selling, this is probably the most common rate we come across today.

If you are buying a property priced in Euros and your money is in the UK in Sterling, or vice versa, you will obviously need to get that money exchanged. In the past all you would have done is to go to your bank, take the rate they offered on the day and transfer it straight to Tenerife where it would have been received in Euros less the bank charges on this end (Yes, not only would you have paid for the transfer from your own bank but the Spanish bank charges a credit in an account too!).

By using a Currency Company that gives you a better rate than your own bank and guarantees that the amount quoted to you is actually credited the Spanish bank you can save a LOT of money. Even if their small admin charge is added you still end up with more money in the bank at the end. It is easy to register with these companies, especially so if you are a UK citizen as the one we recommend is based in the UK.

If you wish to visit their web site to read more about all their services you can do so by clicking here: Moneycorp.

Example:

If you are a UK citizen and have Pound Sterling in your account in the UK to buy a property in Tenerife with, and for example are buying a property for 200.000 Euros.

Your bank may offer to sell you the 200.000 Euros against and exchange rate of 1.10 at the time, which would mean that the property would cost you 181.818 Sterling. The currency company may on the same day offer you a rate of 1.12, this means the property would only cost you 178.571 Sterling.

So, with only a 2 point difference in currency exchange rate you would be saving 3.247 Pounds Sterling.!

This example does not take into account any bank charges or currency company admin charges, but even with these included you will be saving a considerable amount of money. Imagen the property you are buying cost the double, that would also double your saving!