Polaris World

Financial and Legal

Foreign Exchange

Fluctuations in the international money market can work both for you and against you. When purchasing your Spanish property, you will have to pay your deposit and stage payments in Euros, so if your capital is in another currency (e.g.  £GBP), you may want to fix the exchange rate to fit your budget, so there are no surprises in the future when you need to make payments to Spain. Using a specialist FX company to facilitate this is generally much easier and cheaper than using your UK bank.

The are many companies offering Foreign Exchange (FX) services, who can provide more attractive exchange rates than the high street banks. You can buy your Euros (or other currencies) from an FX company at the current rate quoted and they will keep that currency ready for you to release upon your future instructions.

It costs nothing to set up an FX trading account with the company you select but they will require proof of your identity first.

When you decide to trade your pounds for euros, you’ll agree a rate with your FX  “dealer” over the phone. The FX company will then send you a “contract note” detailing what you agreed, for you to sign and return to them by email or fax. You will also receive a form to take to your bank detailing the amount of sterling to pay to the FX company (which you should do quickly to avoid potential late payment charges) and their bank account details. Your bank then transfers this amount to your FX company to complete the purchase of your Euros.

When you are ready to move money to Spain, contact your dealer and let them know that you’ll be sending your instructions to pay the recipient in Spain. (e.g. your Spanish bank or the builders bank)  Fill out the transfer form with the payee’s bank details and IBAN number and send it to your dealer. They will then release the funds as you specified and that is the transfer completed.

In addition many of these FX companies guarantee that there will be no receiving charges made at the receiving end (e.g. your Spanish bank account)

Most FX companies will also set up regular payments of your pension, salary or transfer and mortgage payments.

If you would like to use the services of an FX company just let us know and we can put you in touch with a very good one with whom our clients have been more than happy.

Using a Gestor

A Gestor is basically a general purpose consultant who can help you to administer your affairs. “Your personal administration assistant” if you like, who may be able to help you with your property purchase and with other aspects of life in Spain. When for example you need someone to execute your various administration needs e.g. planning applications, power of attorney, car re-registration, applying for residency, applying for  NIE numbers, fiscal returns etc. a Gestor can be helpful in these processes of buying property in Spain although they are not experts in all areas of the law.  Their rates are generally less than that of an Abogado.  

The Notario

A Spanish Notario is a publicly appointed government official. He or she is a qualified civil servant whose main function is to certify the legality of all matters brought before them for signature. They witness the buyer and seller exchange and sign contracts and prepare appropriate documentation. No sale of property in Spain can be completed without the endorsement of a Notario.
You should remember that some terms in your purchase may not be in your favour but it can still be perfectly legal.  The Notario does not safeguard your total interests but they normally raise any issues that may be considered worthy of your serious consideration before you sign. Your solicitor should have already made you aware of and such issues, BEFORE you arrange the appointment at the Notary.