To buy a property on the Costa Blanca, Costa Cálida, Costa del Sol or Costa Almería, you will typically move the money in two or three tranches: a reservation deposit (often €3,000–€6,000), a 10% deposit on signing the private contract, and the balance plus buying costs at the notary. The best way to do this for most international buyers is a specialist currency broker or a low-cost transfer app rather than a high-street bank — the difference between a bank's retail exchange rate and a broker's rate can easily be 2–4% of the purchase price. On a €300,000 villa that is €6,000–€12,000, which comfortably dwarfs any notary or lawyer fee.
This guide explains, in practical order, exactly how the money should flow to complete a purchase in Mediter's four coastal regions: which transfer method to use, how to lock in an exchange rate so a currency swing doesn't blow your budget, how the money physically reaches the notary on signing day, and the anti-money-laundering paperwork Spanish banks and notaries now require of every foreign buyer. Get this right and you save thousands; get it wrong and completion can be delayed.
Understanding the sequence tells you when — and how much — you need to move. A typical purchase on the Costa Blanca or Costa del Sol runs like this:
Because point 3 needs cleared funds sitting in a Spanish account a few days beforehand, your currency transfer must be complete well before signing day — never rely on money landing that morning.
Remember you are not just transferring the price — you are transferring the price plus roughly 11–14% in buying costs, and the biggest of these is transfer tax, which differs by region. Send enough currency to cover the lot.
| Region | Autonomous community | Main transfer tax (ITP, resale) | Approx. total add-on costs |
|---|---|---|---|
| Costa Blanca (Alicante) | Comunitat Valenciana | ~10% ITP | ~12–14% |
| Costa Cálida (Murcia) | Región de Murcia | ~8% ITP | ~11–13% |
| Costa del Sol (Málaga) | Andalucía | ~8% ITP | ~11–13% |
| Costa Almería | Andalucía | ~8% ITP | ~11–13% |
New-build properties are taxed differently: 10% IVA (VAT) plus AJD stamp duty (roughly 1.5% in the Comunitat Valenciana and 1.2% in Andalucía, with regional variations). On top of tax you have notary, land registry, and legal fees. Always confirm current rates with your lawyer, as regional governments adjust them.
The three realistic options for a large property payment each behave very differently on fees and — crucially — on the exchange rate. The headline "no fee" claim matters far less than the exchange rate margin, because that margin is where most of the real cost hides.
| Method | Exchange rate | Typical fees | Rate locking? | Best for |
|---|---|---|---|---|
| High-street bank (home country) | Poor — often 2–4% above mid-market | Wire fee + possible receiving fee | No | Small, urgent payments only |
| Currency broker / FX specialist | Good — usually well under 1% margin | Often no transfer fee on large sums | Yes — forward contracts & limit orders | The deposit and completion balance |
| Money-transfer app (e.g. multi-currency accounts) | Very good — near mid-market + small % | Small transparent per-transfer fee | Limited | Reservation fee, smaller sums, expenses |
For the two big payments (deposit and completion balance), a currency broker is usually the smart choice because it combines a competitive rate with the ability to fix that rate in advance. For the reservation fee and ongoing living costs, a low-cost app is often quickest and cheapest.
Imagine you agree to buy a €350,000 apartment in Torrevieja (Costa Blanca) and you are funding it in pounds sterling. If GBP/EUR moves by just 3% between viewing and completion — a routine swing over a few months — your cost changes by more than €10,000. That single movement dwarfs every notary and lawyer fee combined.
This is the single biggest financial risk that international buyers overlook. You can manage it with two broker tools:
Buyers funding in Norwegian krone, Swedish krona, Swiss francs, US dollars or other currencies face the same risk and the same tools apply.
Strictly, you can complete a purchase without a resident Spanish account, but in practice you will almost always want one. It is needed to:
Non-residents open a cuenta de no residente, which requires your passport, your NIE (or proof it is being applied for) and often a certificate of non-residency. Most banks along the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería are very used to foreign buyers and offer English-speaking service in the main coastal towns.
Spain applies strict anti-money-laundering (AML) rules, and both your Spanish bank and the notary will want to know where large sums originated. Prepare this early — it is the most common cause of last-minute completion delays for international buyers. Expect to provide:
Route the money in a clean, traceable way: from an account in your own name, through a regulated broker, into your own Spanish account. Avoid moving large sums through third parties, which creates AML questions.
On signing day in Spain, sellers almost always want a cheque bancario (a bank-guaranteed draft) rather than a same-day online transfer, because the notary needs certainty the funds are real at the moment of signing. So the practical timeline is:
Where the seller is non-resident, the buyer must also retain and pay 3% of the price to the tax authority (a capital-gains retention). Your lawyer will organise this — but the euros must be sitting in Spain to do it.
For the large deposit and completion payments, a specialist currency broker usually gives the best all-in cost because its exchange-rate margin is far lower than a high-street bank's, and large transfers often carry no fee. For smaller sums like the reservation fee, a low-cost multi-currency transfer app is fast and cheap.
No. It naturally splits into a reservation payment, a ~10% deposit at the private contract, and the balance at completion. Many buyers fix the exchange rate on the full amount early with a forward contract, then transfer in tranches as each payment falls due.
Euro transfers within the SEPA area usually arrive within one working day; currency conversions from GBP, USD, NOK, SEK, CHF and others typically settle in one to three working days. Always allow a buffer of several days before completion so funds clear and the bankers' draft can be issued.
In practice sellers in Spain expect a bank-guaranteed draft (cheque bancario) issued by a Spanish bank at signing, not a same-day online transfer. That means your euros must already be sitting in your Spanish account before completion.
Yes. A 3% currency swing on a €350,000 Costa Blanca apartment is over €10,000 — more than your notary and legal fees combined. Fixing the rate with a forward contract removes this uncertainty.
Yes. Resale transfer tax (ITP) is around 10% in the Comunitat Valenciana (Costa Blanca), and around 8% in Andalucía (Costa del Sol, Costa Almería) and in the Región de Murcia (Costa Cálida). New builds are taxed at 10% IVA plus regional stamp duty instead. Confirm current rates with your lawyer.
Moving money across borders is where many international buyers quietly lose thousands — or lose time. At Mediter Real Estate we guide buyers on the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería through every step, from your NIE and Spanish bank account to co-ordinating clean, well-timed funds at the notary. Contact our team to find your coastal property and complete your purchase with confidence.
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