Transfer House Sale Euros to UK?

rapidly_balding

My apologies if I've placed this in the wrong thread area.

I sold a property I had in Spain, and I wish to get the payment which will be in Euros, back to the UK.

Can anyone advise the best process to go about this?

I have tried to do my own research, even visited some UK banks to ask to open a 'UK Euro Currency Account' in readiness, but they say I will still be hammered with unspecific 'negotiated fees' which scare the life out of me.

I have been reading about 'SEPA' project arrangements that on the face of it, say I must not face any more charges moving Euro's to another SEPA area (which the UK is) provided the currency stays in Euros and within the SEPA areas. Yet the UK banks advise they are going to charge me for the cost of moving the Euro's into the UK, and one bank (Barclays) said I would not really save anything by opening a UK Euro Currency Account.

Something doesn't seem right about what I'm being told, SEPA looks written to reduce fees moving Euros within the SEPA area, but all I have had in advice from the banks are words like "negotiated fees" with nothing specific, and "conversion fees" which confuses me as I am supposedly going to move Euros to Euros, not Sterling.... I am totally confused.

Can anyone also advise me, what would be the best method to take the initial payment for the property sale, electronic or a bank draft - eg is a bank draft classed as an 'non cash' payment to qualify for the advantages of the SEPA process.


So many questions. Please can someone help, I lost almost half my investment cash on the property sale, and right at the end, I want to keep the bank's sticky fingers at a minimum over what's left of my cash.

Thanks, rb.

abankerbutnotafatcat

I have had a currency account in the UK before - Aus Dollars at Natwest. I did have to pay a monthly fee (the fact that current accounts are often free in the UK is the unusual thing so that didn't worry me). It was a nominal fee such as £5/£10 per month. Given the UKs relationship to the Eurozone I would have thought that a Euro account was much more widely available and less expensive. I know in the past I have seen that Citibank did online Euro accounts although this was a few years ago. The only thing i'll add is that currency accounts don't attract the same credit interest rates as that currency gets in its home country (although linked to it) so the main benefit is being able to either convert at a advantageous time to yourself or use it in that currency. But given how low the Euro rate is and is forecast to reduce to that wouldn't make much difference.

Regarding the transfer, you are right - a payment in Euros to another European country has set fees which are considerably less than normal tt/swift fees. I have many times sent money as Euros to Denmark from the UK in order to take advantage of this (although DK is not in the Eurozone it is pegged to it). I think the flat fee was £10 last time I did it although I'm not sure if it's tiered in line with the amount of money sent - the amounts of money I was sending were all less than €20,000.

Additionally, If you are sending large amounts of money (in excess of €50,000) you will probably get a better rate by using a fx broker. I've used HIFX several times in the past although not since 2009. In which case you only pay to send your money from where it is now to them and they pay to send it to you at the other end iyswim.

Generally, although I'm obviously financially savvy this isn't my area of banking expertise and most of my knowledge is based on personal experience of doing this myself but it does seem to me that you're getting bad advice and I think you're correct to question it.
HTH.

N79

Use a reputable currency broker. That way you will know the rate and their fees will almost certainly be less than a bank - especially for large transactions.

LandyAndy

Did you have a bank account in Spain?

What are you planning to do with the cash and over what time scale?

rapidly_balding

Thanks for the ongoing help folks...

I have 2 banks in Spain, one if with La Caixa, the other CAM bank, though I have heard rumours the latter is in precarious finances and perhaps best avoided to deposit a large sum? Up to now, I only used these banks to pay Spanish taxes and service charges on my now-sold property.

I have just this moment, had one reply from one of the Spanish banks, CAM, saying they will charge 0.3% for each transfer (as it is over 50k Euro, it wil be two transfers).

Does this sound fair and right? Once I have the Euro's in a UK Euro account, I plan to use someone like HiFX to make the change to Sterling.

traderboy007

Spanish banks are notoriously extortionate on charges. When I handled my mothers sale in Marbella we transfered 49,000 euros per transaction and avoided the 0.3% charge.

I used a company in London called Infinity Internationl, they are FSA registered and saved me a fortune when I bought my place in France.

The guys name is Matt Baker his number is 0203 384 7280