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Filed Under: Moving Abroad

How to Transfer Money to Buy Property Overseas

Mike SmithAuthor, Mike Smith

Last Updated on August 5th, 2024

Be it a chateau in rural France, a loft apartment in New York, or a seafront villa overlooking the Mediterranean Sea, the prospect of owning a home abroad is one full of high hopes and anticipation!

With so many things to consider, people often leave the transfer of their funds for the property purchase to the last minute. 

This guide aims to provide you with a thorough understanding of the options available to you when transferring money for overseas property purchases, and how to minimise the costs! 


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The Best Way to Transfer Money to Buy an International Property

When it’s time to secure that perfect property at the very best price, you’ll need to figure out how to transfer your funds. 

Let’s talk through the most effective ways to get it done. 

Of course, there are various options for sending money to another country ranging from using your bank to online apps or currency brokers.

Each method has its advantages and disadvantages, but it’s important to highlight that currency brokers will provide superior exchange rates and lower fees. 

This makes them an attractive choice, particularly for regular or substantial money transfers between countries. 

Bank-to-bank Transfers

While using your bank to send money abroad is convenient, safe, and secure, the fees are high and the exchange rates are unfavourable. 

The table below outlines the transfer fees added by some of the most well-known banks for international transfers.

Bank Outgoing International Transfer Fee
Metro Bank £15-£25
NatWest Up to £15
RBS Up to £15
Santander Up to £25

Note: The significant cost often lies hidden with the exchange rate. Banks typically prove to be less favourable options for transferring your money abroad. 

As a general rule, the margin a bank will charge you is between 3-5% depending on the currency and amount you are transferring. 

ALWAYS check with your bank in person or by telephone to clarify the rate you will actually receive. 

Rates that are published on their website may not be what you get on the day of your transfer! 

I decided to do some covert digging into what the banks REALLY charge.

After some investigation (it pays to have friends in high places!) it seems like one of the worst culprits is NatWest. 

To change GBP to US Dollars, for example, their margins work out at a whopping 4.6%. 

This means that sending £200,000 as an international transfer could cost you up to £9,200 in exchange rate charges.

Which, in my opinion, is daylight robbery!

That’s a huge chunk of your hard-earned cash which could be put to good use in your new home abroad. 

This exchange rate cost is similar across the board with NatWest for other currencies, including the Euro. 


Online Transfer Providers

Apps such as Wise and Revolut can also be convenient, especially for smaller transfers, but it’s essential to be mindful of their fees and exchange rates.

Their fees usually increase depending on the amount you’re looking to send. 

There is little to no customer service with these online providers – meaning if you run into any problems, the first point of contact is a chatbot.

Not ideal when you’re looking to send a large amount of money for a property purchase, in a different country. 

Recently, my friend had her Revolut account frozen without warning after she had received 950 euros from a family member. 

This was flagged as suspicious by Revolut – with no warning.

After providing a mountain of documentation, all via the online chat, her account was reactivated after 7 days… all over a €950 transfer. 

Imagine if that was a 10% deposit you were sending to secure your new property abroad – you could quite easily have been ‘gazumped’ for a week!

Let’s break down the pros and cons of these services available to you:

Transfer Service Pros Cons Best For
Banks Convenient and familiar. Transfer fees, high charges, and not the best exchange rates. One-off payments abroad. 
Online Apps Quick transfer times. Transfer Fees increase depending on the amount, no personal service, and daily transfer limits.  Small international money transfers.
Currency Brokers No fees, competitive exchange rates, personal service, and communication throughout the transfer process. Need to register before the service can be used.  Large or regular money transfers internationally. 

By weighing up these factors, you can select the method that best suits your needs and ensures a smooth transaction for your property purchase.

With a recent report clarifying that around 35,000 Brits buy a second home abroad every year – the advantages of using a currency broker have never been higher.

Using a professional broker such as Key Currency will ensure that your purchase funds are transferred at very competitive rates and in the most secure way possible.


Overview photograph of apartment buildings in central New York on a sunny day.


How can Exchange Rates Affect Buying Property Abroad?

Even the most financially-minded amongst you may not have much experience with exchange rates, but they can have a big impact and unfortunately, be slightly confusing! 

I asked Key Currency trader, Tom Ellis, to explain this as he would to a potential client.

“The exchange rate is the second most important aspect of a property purchase abroad. 

Generally, as property involves high figures, the difference in rate can mean the saving (or overspending) of thousands of the original currency.

It’s important to have a broker monitor the market, to help you capitalise at the correct time, potentially saving a lot of money in the process. 

It also takes some of the weight off the client’s shoulders, as they will have somebody keeping a close eye whilst the other stresses of a property purchase can be dealt with accordingly.”

Without professional knowledge and/or experience in the world of exchange rates, it can be something of a challenge to monitor the ever-changing rates on your own. 

That’s why we firmly believe that having the personal support of a currency broker is so important.


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Ensuring the Security of Your Money

One of the most important factors to consider when making a large international money transfer is, of course, security. 

Whilst your bank may feel safe and comfortable, a currency broker can offer a superior level of security and the personal service will keep you reassured throughout the transfer process. 

As one of our expert traders, Rob Griffiths says: 

“Most importantly, we want you to get a good exchange rate and feel secure. As your currency broker, we’ve got the exchange rate covered. But, when it comes to security we go the extra mile. 

We make sure our clients know that the accounts they send money to are segregated and safeguarded. We even send proof if you want to double-check.”


Photo of a property in the French Riviera, surrounded by green trees and colourful flowers.


What are the Costs Involved When Buying a Property Abroad?

Now let’s look at what costs can you expect to incur when buying your dream home abroad.

It’s hard to put too fine a point on these costs, as of course, they will depend on the location, whether it is in Europe or Asia for example – the costs will of course differ.

However, in our experience, a general list of costs to keep in mind and research would be the following: 

  • Property Prices (important to consider prices in various countries/areas). 

  • Mortgages (if applicable, analyse various products/services offered). 

  • Financial advisor fees. 

  • Chartered accountant or quantity surveyor fees.

  • International bank transfer fees. 

  • Bankers’ draft/bank-guaranteed cheque fee. 

  • Fees to arrange power of attorney. 

  • Connection fees for council/municipal services. 

  • Mains drainage and refuse collection fees.

  • Annual property tax, income tax, or income tax for non-residents.

  • Community fees/levies if your property is part of a larger estate or development. 

  • Legal fees to make a will.

  • Translation fees. 

Again, it is advisable to seek professional help from your real estate agents and lawyers to provide sound advice on the above. 


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Top Tips to Consider When Planning Your Move

As well as the important financial facts above, it’s also vital to look at some of the practical points to consider before buying a property abroad. 

Having lived in Spain for the last 14 years, Hilary Crane, one of our Business Development leads in Ibiza, has seen various people face challenges in their new life abroad, all of which could have been avoided with careful planning. 

Here are her top tips! 


Location, Location, Location!

The world is your oyster, but choose your pearl wisely – picking the perfect place to move abroad is not a decision to be taken lightly! 

A sun-soaked 7-day holiday doesn’t quite compare to taking the plunge to live in what seems to be your ideal allocation.

I would always advise anyone to spend as much time as possible in their chosen destination before signing on the dotted line. 

Look carefully at factors such as living expenses climate, healthcare, safety, and local culture to ensure they fit your imagined lifestyle.


Rules are NOT made to be broken!

In the case of moving abroad, it’s vital to ensure you completely understand the legal aspects of living in a new country. 

Research visa requirements, residency options, and any paperwork needed to smooth your move. 


Connect and Build a Circle

Making connections by reaching out to both expats and locals BEFORE you move can be a huge help. 

For example, I am a member of several WhatsApp groups and Facebook communities for the area of Spain in which I live.

These provide invaluable advice on everything from how to register your new car to finding some Tetley tea bags!


Taking Advice from Local Professionals

Local real estate professionals, lawyers, and financial advisors in your chosen area can offer sound advice on many aspects of your move. 

Draw on their expertise to guide you through the intricacies of the buying process, as this can be dramatically different from one country to the next.

A Personalised Service, By Key Currency, for Your International Property Purchase

Unlike big banks, which can feel like faceless giants, Key Currency brings a personal touch. 

Our currency specialists are real people here to help.

They get to know you, and your needs, and guide you through the ins and outs of moving money internationally for buying property. 

Simply speaking, Key Currency has all of your bases covered and will be by your side through every step of your overseas property purchase international money transfer.

Key Currency is FCA registered meaning your funds are in the safest hands possible, and if you want to hear first-hand reviews, check out our TrustPilot rating.

If you’re looking to buy property abroad, wherever it may be, and need help transferring the funds, make sure you get a quote and speak with us today!


Graphic showing the 4 steps to transfer money internationally with Key Currency.


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