With a lot less Brexit uncertainty and projected gains by 2022, the UK economy and the pound are expected to recover. In the short term, and due to lockdown measures, the pound will be weighed down by negative sentiment which will also lead to economic contraction. But economists are positive that following the rollout of vaccines there will be a sharp recovery in economic activity and investor sentiment which could see Sterling rising against major currencies such as the euro and dollar.  

The recent lockdown restrictions to control the spread of a new strain of the coronavirus will slow down the economy and hurt the pound, but a swing in sentiment might also be materialising soon as the market has reached its negativity point against the pound. Kit Juckes, Macro Strategist at Société Générale, has said that things will improve with the new vaccines and positive news about controlling the virus: "If the new lockdown does work, and more so if vaccine deployment does go quickly from here inwards, Sterling could have a good year. In the meantime, it seems clear that a lot of gloom is priced in already.”

England is currently under a strict national lockdown as the government struggles to rein in the rise in infection. On Wednesday, the UK recorded its greatest daily surge in coronavirus-related deaths since 21 April, with a total of 1,041 registered deaths.

Short-term forecasts for the pound

In the first quarter, the UK economy could contract due to further lockdown measures which will slowdown economic recovery. A rebound in economic activity, however, is expected immediately after the lockdown measures are lifted. With more vaccinations, as a 2 million weekly target is set to be successfully completed by the end of January, economists are hopeful that the economy will slowly bounce back. The government has obtained access to 100 million dosages of the Oxford-AstraZeneca vaccine, with tens of millions of vials to be delivered once the MHRA has quality checked them. There are more than 730 vaccination sites across the UK, and more are opening this week to provide access to Covid-19 vaccines to a wider group of people at risk. In this respect, as vaccinations increase, so will market sentiment towards the pound.

"We expect a gradual re-opening from early March onwards, with faster progress of normalisation thereafter as more people are vaccinated and springtime heralds the natural remission of seasonal respiratory viruses,” Kallum Pickering of Berenberg said. Analysts at Berenberg highlighted that the near-term outlook will be “much worse than before” and forecasted a 2% decline in the first quarter of the current year estimated growth of 6% for the whole of 2021. Kallum Pickering said that the forecast for the first quarter might be gloomy, but the second quarter will see “faster catch-up growth” of 9% and the third quarter is forecast to see 4.5% growth than the 2.3% previously.

Growth rebound in the Second Quarter

According to Pickering, the growth rebound in the second quarter of 2021 will be greater than originally estimated with +9% expected, against the 6% growth forecast previously. For the fourth quarter he sees 1.3% forecast versus 0.9% previously. Pickering said: “we now project an 11.5% decline in 2020 followed by gains of 6.0% in 2021 and a 6.5% gain in 2022 (previously -11.6%, 7.3% and 4.9%, respectively). Despite the near-term hit, the UK medium-term outlook remains positive. With much less Brexit uncertainty and strong gains in global demand ahead, UK real GDP can still recover to its pre-pandemic level by the end of 2022 as previously expected.”

Are you Transferring Funds Abroad?

If you are transferring funds overseas, contacting a currency specialist could save you time and money. Whether you are sending money to family or paying your employees abroad, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal or business’ transfer needs.

You might have organised buying your home overseas a long time ago, but when it comes to Brexit there are a few things to consider before moving overseas. The requirements for living in France after Brexit have not been set in stone yet, with the latest updates referring to minimum resources. There is also some confusion regarding British expats’ French residency rights, healthcare and work in France after Brexit. In this article we hope to shed some light on some of these and to help guide you through the issues that most Brits are concerned with.

Minimum Resources Requirement

Many Brits are concerned about the number of resources they need to have to qualify for French residency after Brexit, especially for those who have limited income or are pensioners, which can be quite stressful.

The French government has recently published an Arrêté in the Journal Officiel, which clarifies what criteria officials need to consider when making their decisions. Such decisions will be based on individual cases, as the authorities will need to look at an individual’s specific situation, whether they own their home, paying mortgage or rent, or they have extra savings or rental income in the UK.

The French government will consider reasonable income anything that is in line with the French in-work benefit, the so-called Revenue de Solidarité Active (RSA) which is currently at €564.78 per month. For British couples for example, it will be fine if they both declare the aforementioned amount as their household income, without needing to receive €564.78 each. Regardless of how many people are residing in a specific household, the amount required will be the same as the minimum amount of the RSA for a single person without children. The same amount will also be the guideline figure for other applications such as those regarding the French benefit level for pensioners.

French Residency: Providing proof of your income

Not everyone has to provide proof of their financial situation when applying for residency. If you have lived in France for more than five years, you will only need to provide personal identity confirmation documents, proof of address documents and evidence of the date you arrived in France.

If you have been living in France for longer than 5 years or you are married to a French citizen, you will still need to apply for a residency card before 30th June 2021. If you lived less than 5 years in France, you would need to apply as either employed or self-employed, job-seeker, student, retired or as the family member of someone who meets the above criteria or the spouse, civil partner or live-in partner of a French person. If you are retired or financially inactive, then you will have to provide evidence of how you support yourself including recent tax declaration, any pension payments or recent bank statements. A French government website in both English and French provides more information about moving to or living in France.

Transferring Funds: Currency Exchange

If you are a British home buyer, a currency specialist such as Universal Partners FX can help you navigate the current market while taking into consideration your specific needs, goals and your budget. UPFX offers excellent exchange rates and has a record in providing tailored and dedicated customer care to thousands of customers worldwide.

When considering buying your dream home in France, Universal Partners FX can give you peace of mind when sending money overseas. If you want to schedule ahead and safeguard your funds, talk to one of their foreign exchange experts today.

 

Sterling climbed against the dollar on Monday after the EU and UK announced that they will “go the extra mile” and continue with Brexit negotiations. 

After last week, when the pound fell due to concerns over a no-deal Brexit, this week the pound rose reversing some of its losses. The Prime Minister Boris Johnson and European Commission president Ursula von der Leyen agreed during a “constructive” call on Sunday to “go the extra mile” in order to secure a trade deal for the UK. With no deadline for negotiations, British officials have said that negotiations could continue until Christmas. 

What do analysts say?

Whatever happens to the pound is going to have an impact on Thursday’s Bank of England meeting which is expected to remain on hold. Analysts believe that if markets are worried and the pound falls on the prospect of a no deal, then the BoE might increase its QE purchases within a short period of time. Nonetheless, pound volatility as we near the end of 2020 is to be expected. 

Goldman Sachs has predicted that the pound will rise if there is progress towards a deal or a no-deal Brexit is avoided. Barclays analysts explained that there will be risks to the pound until an agreement is reached. As the Financial Times reported, some analysts have changed their mind, quoting Gregory Perdon, co-chief investment officer at Arbuthnot Latham, who had “second thoughts” about the pound rising, but he reiterated his hopes for a deal as  “both parties are probably better off economically with a deal.” “Let’s hope rationality wins in this instance,” he added. 

Others more pessimistic, have warned that the pound’s gains might be short-lived, as both the UK and EU have failed to reach a deal repeatedly in the past.

Talking to Reuters, Junichi Ishikawa, senior foreign exchange strategist at IG Securities said: “This is a temporary move higher in the pound, but it is still not clear that a no-deal scenario can be avoided.”

Whether there is a deal or no deal, some investors feel that the pound could still move sharply.

What’s next?

The UK left the European Union on 31 January 2020, but the ongoing negotiations between the UK and EU officials are focussing on securing and negotiating a deal about the rules that will determine and define the kind of relationship the two parties will have post-Brexit. Michel Barnier has commented that Boris Johnson has made a mistake for hoping to negotiate an agreement within only 11 months.

The two sides have until 31 December 2020 to agree a trade deal and, if there is a deal, border checks and taxes will be introduced. The transition period ends on 31 December, and tariffs and quotas will be introduced in the event of a no deal.

A joint UK-EU statement stated that “despite the fact that deadlines have been missed over and over we think it is responsible at this point to go the extra mile."

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

Sterling rose after renewed hopes that a Brexit deal is still possible, as the UK Prime Minister Boris Johnson is heading to Brussels for a meeting with the President of the European Commission, Ursula von der Leyen. Heightened volatility is expected as the meeting could take place any time this week or over the weekend, with any rumours possibly to move the currency.

On Monday, the GBP suffered losses after news that the negotiations reached a stalemate, and the PM stated that he was willing to walk away. But, later, on Monday, as it was announced that Johnson would be travelling to Brussels for a face-to-face meeting with von der Leyen, the pound regained some of its losses. News about the meeting is not yet clear and markets expect the two to either meet on Wednesday or possibly Friday. On Thursday, a meeting of European Council EU leaders will also take place, and many predict that the meeting with von der Leyen could even take place in the weekend, to allow EU leaders to approve of a new mandate for the EU Commission President before the meeting.

With confidence dwindling and the possibility of a deal becoming more and more distant, markets will remain sensitive to any Brexit updates. While everyone was expecting Johnson and von der Leyen to discuss over the phone, the announcement of a physical meeting caught markets by surprise. At the current moment everyone hopes that a breakthrough could be reached by an intensification of negotiations at a more personal and political level.

What to expect for Sterling in 2021?

A lot depends on a positive Brexit outcome. The currency is also correlated with global business and economy, so any general positive upswings will also boost the pound. According to economists at Oxford Economics, global economy will expand and the UK will benefit from the trend, especially after being so badly impacted by the pandemic.

However, if both sides fail to reach an agreement, the Pound could fall below parity, as many believe there is much more downside risk than upside. There is a real risk to the outlook of the UK economy and the pound if a no deal outcome ensues, but, at the same time, there are multiple scenarios possible: a deal or no deal, as well as a so-called cooperative no deal and an uncooperative no deal. An uncooperative no-deal Brexit will be more disruptive than a cooperative no-deal Brexit, in which the EU and the UK will be able to cooperate on a number of pressing emergency issues.

The UK government announced on Monday 7th Dec. that they will remove those elements that the EU openly disagrees with in the possibility of a trade deal, including the law-breaking clauses of the Brexit Bill. However, the clauses might return if a trade deal is not agreed, which will point towards a hard, uncooperative no deal Brexit. In this scenario, the pound will fall to the lower end.

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

The possibility of striking a Brexit deal before the weekend has helped to stabilise the pound as it recovered some ground, on Thursday. However, tensions are building ahead of the weekend as talks continue. This means that any Brexit-related headlines will create pound volatility and move the market considerably.

The clock is ticking

While markets are hopeful that a deal will be reached, the fact that the clock is now ticking with little space for manoeuvres means that the pound will remain sensitive. The Telegraph reported that Barnier told EU ambassadors that the UK has become more flexible and lowered its demands in regard to UK waters post-Brexit, demonstrating that the two sides are closer to an agreement. Fisheries and governance remain unresolved, with the latter to be negotiated once all other agreements are settled. Talks could now focus on the percentages involved in fisheries, but France might prove to be uncompromising on its fishing demands. According to The Telegraph, "Fishing nations such as France, Denmark, the Netherlands, Belgium and Spain fear Mr Barnier may cave too easily to British demands as talks enter their endgame. Paris insists the UK red line of annual fishing negotiations is unacceptable.” France has already clarified that it will veto any deal that goes against their interests.

A report in The Times said that "France and other hard-line countries are pushing for no deal in Brexit talks to soften up Britain before a reset in negotiations next year, unless the government makes significant concessions in the coming days," and unless the UK "backs down over the next 48 hours", a period of 'no deal' will "bring a chastened Britain back to the table next year".

The BBC's Europe Editor Katya Adler said that Brussels believe a deal will be possible in the event that the UK makes significant steps to meet the demands regarding fisheries, competition rules and governance.

Talks continue in London

Negotiations are at the final stages, but it appears that any last hurdles will require, maybe not divine intervention, but at least some help from leaders from the UK, EU Commission and France. Both Wednesday and Thursday, saw negotiators working well into the night for the final push.

On Friday, The Telegraph reported that talks will find Boris Johnson and Emmanuel Macron coming head to head this weekend, with France interested in securing access to fish in British waters.

According to certain sources, Macron's officials have been "lobbying hard" among different member states to agree to added demands on fishing, state subsidies and non-regression clauses, and these will be discussed by both the PM and the French president over the weekend.

EU member states could also veto any deal as they continue to have concerns about state aid mechanisms and how to enforce agreed environmental and labour standards. France and Denmark are reluctant to lose their fishing shares in UK waters.

Indeed, there is not much time left now, as negotiations continue and the upcoming EU leaders’ meeting on 10 and 11 December 10-11 means that a final deal needs to be ready to be agreed. Sterling will make significant gains if a deal is announced in the coming weeks and it could potentially continue to rise.

 

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

If you are buying your dream home with a mortgage from a Spanish bank, you should be prepared as the process will take some time and banks will be extremely strict with having all documentation in place. Preparing early and having your mortgage in place, will make the process much easier and give you peace of mind.

Buying property

The bank in Spain will typically request that you submit specific documents with your application, although a dedicated person from the bank’s customer relations will help you throughout with your documents and make all the necessary arrangements.  It is usually expected that you will provide a copy of your passport, proof of address documentation such as a utility bill, an NIE certificate, if you are employed, they will need at least 2 of your last wage slips, your annual tax statement, and 2 annual tax returns, last 2 years annual accounts, an accountant’s or employer reference, credit report, last 3-6 months bank statements, mortgage or rental agreement relating to the main residence. Whatever they require, they will first assess it and then they might respond with potential questions. After this, they will offer you a provisional approval on the condition that your property is valued, and it corresponds to the amount you are asking. The valuation takes a week. The bank branch submits your application to their risk department for a final approval which will be provided in writing.

Building a house

A similar process is followed if you are building  a house, as the value of your land and projected costs for a house will be assessed and cross-checked by a professional surveyor who will visit the location and provide their valuation to the bank.  By this time, you will need to have had architectural plans approved by the building authority and have a general estimate of your overall costs, so you present the bank with a clear and realistic number. If you do not manage to do so, this will create delays and more paperwork, so it is good to have a clear communication with your bank from the start and understand what is needed. Whether you are signing your contract with the bank or an independent third party will evaluate your property, you will be required to cover the costs. This will also include any fees for lawyers, especially if you do not speak the language, as the bank will arrange for a lawyer to be present to translate any papers you need to sign.

Total costs

The total costs of buying a property with a mortgage could be around 3%, as you will have to pay an arrangement fee (1% of loan as standard), valuation fee (approx. €500.00) and mortgage stamp duty (around 1.1%).

The interest rates in Spanish banks are attractive and relatively low, with an average rate around 2.75%. It is important to consider that banks now might offer a loan that covers only 60% (non- residents) to 80% (residents) of the purchase price or of the appraised value of the property (the lowest value prevails).

When buying a finca or rural property the maximum mortgage will be 60%. The rest you will have to finance yourself with your own resources, whether that means you need to increase your mortgage in your home country or with personal savings.

Spanish banks also take into account your family situation, whether you rent your home or have your own property, number and age of children, type of work, income, etc.

When applying for a mortgage in Spain, banks will look at the relation between your income and debt to assess your situation and decide how much you are able to pay per month. For example, the bank will consider around DTI of 30-35% (up to 40%) and for non-residents, the accepted DTI will be 25-35%.

If you are a British buyer, a currency specialist such as Universal Partners FX can help you navigate the current market while taking into consideration your specific needs, goals and your budget.

When considering buying your dream home in Spain, Universal Partners FX can give you peace of mind when sending money overseas. If you want to schedule ahead and safeguard your funds, talk to one of their foreign exchange experts today.

The pound appears to have risen ahead of the weekend, as Brexit negotiations continue. EU ambassadors have been told that a trade and security agreement with Britain is almost ready to be finalised as gaps on the contentious issues are “slowly shrinking.”

Both sides however remain inflexible, with European politicians saying that there remains work to be done and the UK saying that the EU needs to compromise. The risk of a no-deal Brexit in six weeks is still high.

According to a Bloomberg article, the UK “hasn’t moved sufficiently to overcome the main obstacles to a post-Brexit trade deal as three of the bloc’s leaders called for contingency plans to be stepped up in case there is no agreement.” Secretary General of the Commission Ilze Juhansone told envoys from the EU’s 27 member states on Friday that “negotiations could now slip into December as progress has been slow.”

On the other hand, the report noted that "The U.K. government has said that both sides have already made concessions on the three remaining areas of disagreement - access to British fishing waters, the level playing field for business, and how any deal is enforced - but that it’s up to the EU to make the final compromises."

A report on Reuters, stated that EU diplomats reported that “The European Union and Britain remain at odds in last-ditch trade talks over fishing rights, guarantees of fair competition and ways to solve future disputes, even though they are very close to agreement on other issues.” A senior EU diplomat told Reuters that “We are both close and far away. It seems that we are very close to agreement on most issues but differences on the three contentious issues persist.” Officials will continue negotiations online, as on Thursday it was announced that direct talks were suspended after a member of the EU team tested positive for COVID-19.

Negotiations are stuck

Negotiations have not progressed much as both sides remain unyielding on the main points: “Some things on the level playing field have moved, albeit very, very slowly. Fisheries are not really moving anywhere right now.” In terms of state aid, Britain has offered to set up a regulator for corporate subsidies, as the EU requested, but this was rejected as the body needed to be independent from the government and with a clear authority. Another EU official said that “negotiators mostly focused on such elements of corporate fair play as well as divvying up fishing quotas in recent days: ‘Both of these are still very stuck.’”

Pound Rises despite Brexit deadlock

The pound has risen against the Euro, Dollar and other major currencies, as negotiations continue. Markets remain confident that both sides will strike a deal despite the persistence of major differences. In the possibility of a trade agreement being reached the next two to three weeks, the EUR is expected to fall, something that will also be supported by positive news about a vaccine for Covid-19.

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

While investors have been preparing for a Brexit deal as early as next week, official briefings on Thursday and Friday are expected to cause volatility. On Thursday, the pound fell as global markets turned cautious after a “media report that EU leaders will demand the European Commission publish its plans for what will happen if there is no deal,” Reuters reported.

On Thursday, EU leaders will address outstanding issues like fisheries and “level playing field” provisions as they meet via a video call. Executive Vice President of the European Commission Valdis Dombrovskis said: "We're in the final push. There are still important elements to be resolved, substantial work to do. We've seen many deadlines come and go but there's one we'll not be able to move - Jan 1. We're now in the last moments."

Bloomberg News reported that a new trade agreement between the UK and Canada, could come as early as Thursday: “Reports that the UK and Canada are very close to reaching a post-Brexit trade deal are undoubtedly good news for both economies, but with time dangerously running out on a EU-UK trade deal, sterling is struggling to react positively to the news.”

Thursday and Friday to create pound volatility

The Sun newspaper’s Nick Gutteridge said that France will be determined to retain its access to UK waters post-Brexit and if it does not move on fisheries this could create more anxiety for markets. The UK is said to expect a final push from various leaders in the summit as they put more pressure on the UK for more concessions. Thursday’s summit might have a negative impact on the pound as markets reconsider the possibility of a deal.

On Friday, EU Chief Brexit negotiator Michel Barnier will brief European representatives of the EU's 27 member states, and markets will be closely watched for any signs of a deal. UK Chief Negotiator David Frost had told Prime Minister Boris Johnson on Tuesday that a deal was possible as early as next week.

How the pound will react?

“Observers still expect a deal early next week or in the first week of December. Market participants are similarly not that concerned over the risk of No Deal Brexit at this point in time,” wrote MUFG strategist Lee Hardman. “There is likely to be a much larger pound move to the downside if both sides fail to reach a deal (-5% to -10%), while we expect a modest move to the upside for the pound if a deal is finalized (+1% to +4%),” he said.

Analysts at UBS noted that there will be a "meaningful bounce" in the Pound if a deal is signed: "The latest news flow points to an agreement being struck just in time for ratification by the EU Parliament. Given markets - and hedge funds specifically - are relatively under-positioned for such an outcome, we’d expect a meaningful bounce for GBP on even a confirmed ‘skinny deal’ outcome." But a positive outcome also means good news for the pound and the UK economy which they tend to benefit if the global economy is doing well. The UBS analyst stated: "This is intuitive given the degree of openness of the UK economy and bodes well for a recovery in global growth into 2021. Naturally, the link has weakened since the 2016 referendum, but cheap valuations offer some hope of at least a partial snap-back in compensation. And the UK economy stands to benefit more than most in 2021 as it was hit particularly hard by this year’s pandemic.”

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

 

 

Sterling extended earlier gains after a report that the UK and the European Union could agree on a trade and security deal some time next week. Optimism regarding striking an agreement has given the pound fresh impetus, despite that time is running out.

Economists believe that Sterling could strengthen more by mid-2021 if a free trade agreement is reached, as officials are expecting news of some form of progress as early as Monday. British and European parliaments will still need to confirm the terms of the agreement before the transition period ends on 31 December. At the moment, investors remain hopeful, but the possibility of the talks stalling as major differences cannot be bridged is strong, and in such a scenario the pound would likely fall.

Newspaper reports suggest a trade deal is possible

During the week, various newspaper reports have suggested that a trade deal is "just days away" with the Telegraph saying that Ireland believes there are "landing zones" for an agreement and that France has accepted the restrictions to its fishing rights in UK waters after the transition period ends. The newspaper also reported that "the trade agreement could be announced as early as Monday, sources in Brussels suggested – but only if both sides made compromises on issues such as fishing and subsidy law." On Tuesday, the Sun newspaper said a deal could be expected next Tuesday, as the UK Chief Negotiator David Frost said to the Prime Minister Boris Johnson to prepare for a trade deal on Tuesday, news that have helped lift the pound.

Despite positive but unofficial reports in British newspapers, both the EU and UK have not offered a definite answer about the status of the negotiations which means the possibility of a no deal is still a valid outcome with some analysts remaining very cautious. At the same time, the markets seem to have made peace with a possible no-deal scenario, so any news of a deal, no matter what that deal is, will lift the pound. However, a possible deal will only mean temporary and limited gains for the pound according to some analysts, while for others, a considerable rise should be expected.

Brexiteers feel stuck as no deal impossible

The UK is now trapped and will be unable to benefit from Brexit, said former Brexit Party MEP Ben Habib. Habib, who attacked the PM saying that a no deal Brexit was not possible, said in an interview to Express.co.uk, that "We are already stuck, to some extent, in the gravitational pull of the European Union.” For hard Brexiteer Habib, a no deal Brexit would allow the UK to completely cut its ties to the European Union, but, unfortunately, this is not possible anymore. As he said, "We have a deal of some description from which we simply cannot escape."

Are you a Business Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money or you are paying your employees overseas, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal and business transfer needs.

 

Buying your home in Spain is a dream come true, but there are many important things to consider when it comes to buying and transferring funds from the UK to Spain. Since buying a property involves taking into account the actual price of the home as well as any related costs such as paying taxes and fees, which can be as high as 8 and 15%, it is vital that you consider your finances, minimise your expenses and have a solid plan with a forex broker.

Costs to consider

It is important to work out your budget for buying your property, taking into account all of the related costs. One of the first things to consider is the property transfer tax which is around 10% of the purchase price and every region in Spain sets its own one. For example, in Andalucía, a property that costs up to €400,000 will have a property transfer tax of 8%, whereas over that and up to €700,000, you will have to pay 9% or 10% if the property costs over €700,001. But this is not all. When you buy a home or a plot of land, you have to register with the land registry, so you get your deeds. The fee for this can be €500.00 for a property of €100,000.

When you are signing your contracts and buying property this is conducted in the presence of a notary who will also charge a fee to verify the documents and the act taking place. Again, the notary fees depend on the price of a house, so for a €100,000 property, you will need to pay €800.00 for fees.

When you are buying, you will also need a solicitor to represent you and whose fees will be around 1% of the purchase price. Also, you will have to pay the commission of the estate agent, if there is one, and it is usually included in the property price.

How to Save Money

As always, getting some extra help from experts could relieve some stress and save you money. A very useful thing to do is contact an estate agent who knows the area you want to buy in well and who can give you more insight, help you understand market prices and explain the process of negotiating a price further. They might save you a lot of money by explaining the right price for a specific purchase and help you have the upper hand in the negotiations by providing valuable background on the purchase.

Additionally, someone who speaks the language and who can explain the process, such as a lawyer who can act on your behalf and elucidate complex legal issues, is a great asset. They will be able to point out things to watch and avoid such as illegal property building or planning which might cost you money to resolve later.

Paying with cash is always a great advantage as you can pay less and is something to consider if you are willing to do so.

A useful point to consider is paying for a survey of the property to make sure there aren’t any underlying problems and ensure that the structure of the house is solid, otherwise, if there are issues you can negotiate a lower price or save yourself the trouble and money.

Use a currency specialist

Transferring sterling to euro can cost you bank fees. To avoid unnecessary expenses, it is wise to use a currency transfer specialist such as UPFX that they can transfer funds for your purchase. Not only will they offer you competitive exchange rates, but they will make sure that your funds are protected from currency fluctuation.

When you are buying, it is good to consider buying offseason, negotiate the price and get a special deal and be open to change your requirements and find something that is much cheaper. You might be surprised at the opportunities you might find when taking a step back and looking at locations or properties you may have not considered before.

If you are a British buyer, and want to secure a strong investment opportunity, now is the time to get in touch with your currency broker. A currency specialist such as Universal Partners FX can help you navigate the current market while taking into consideration your specific needs, goals and your budget.

When considering buying your dream home in Spain, Universal Partners FX can give you peace of mind when sending money overseas. If you want to schedule ahead and safeguard your funds, talk to one of their foreign exchange experts today.