Transferring Money To A Foreign Bank Account

Whether you’re looking to purchase a property overseas, pay international bills or are interested in foreign investment, one thing that is pretty much standard for all of these things is that you will have to send money abroad and most likely will need to transfer the funds to a foreign bank account.

To begin transferring money to a foreign bank account with Universal Partners FX, follow these simple steps:

  • Sign-up for a personal account or business account
  • Log-in to check our live exchange rates and secure a quote for your currency transfer
  • Submit the details of your bank and the foreign bank account you’d like to transfer the money to
  • Finalise and submit your transaction

Yes, transferring money to a foreign bank account with us is really that easy. You can choose to set-up a single or recurring transaction through our online money platform, providing you with fast and secure money transfers.

Why choose Universal Partners FX?

When a person needs to send funds abroad, they will typically head down to their bank and start the process there as it seems the most convenient way to do so. Unfortunately, despite the convenience that banks offer, they often charge higher margins above the daily exchange rate to account for risk as well as adding a substantial transfer fee. By choosing Universal Partners FX to transfer your money to a foreign bank account you gain access to several benefits, including:

  • Receiving a quote for your transfer based on live exchange rates at a decreased margin that banks typically offer
  • Swift, secure transfers that allow your money to arrive at its destination safely
  • Take advantage of our currency transfer services such as spot transactions where you are able to target a specific exchange rate
  • 24/7 customer support from one of our foreign exchange experts
  • Access to our innovative online money platform

As well as providing a more cost-effective and supportive method of transferring money to a foreign bank account, we also offer access to a range of risk management strategies such as forward contracts and hedging plans that help to protect you against volatile market fluctuations.

Making your life easier

When you choose to send money abroad, it can often be quite a confusing process with so many names and different banking codes needed to complete a transaction. That’s why by choosing Universal Partners FX instead of a typical foreign exchange provider, you are able to complete your overseas transfer in a simple way that’s easy to understand. Our online registration can be completed in just a few minutes and will guide you through the entire process so that you know exactly what information is needed to ensure your transfer goes through successfully.

Just a few steps away

Once you’ve signed up for an account with us and it is active, you are then able to send your funds to us to transfer to a foreign bank account of your choice. The entire process usually takes 1-5 business days depending on the country you’re transferring to and the currency pairing. Whether it’s for personal or business reasons, you shouldn’t think twice about choosing Universal Partners FX when transferring money to a foreign bank account.

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The British Pound rose against the Euro on Monday after BMG and Survation polls confirmed expectations of a Tory win in the general elections on 12 December. Both polls showed that the Conservative Party was leading the polls, with Labour suffering losses.

The Independent’s BMG poll showed the Conservatives gaining points to 41% and Labour losing 1 point to 32%. ITV's Good Morning Britain Survation poll showed the Conservatives gaining 2 points to 45% and Labour losing 2 points to 31%. Leading by 7 points means that the Tories will win with a majority, while a 14-point lead shows a clear-cut win.

With a Tory majority clearly confirmed by the polls, and fears of a hung parliament receding, the pound rose to a 31-month high against the euro, while against the dollar, the pound was a little bit less than last week’s 7-month highs.

The Survation poll was conducted between 5 and 7 December by telephone with 1,012 respondents. The positive news for the pound is also that Labour is losing rather than gaining points, showing that there is a healthy gap between the two parties and that that gap would be impossible to close in the next three days. Richard Pace, options analyst with Thomson Reuters, said that "Polls continue to show the Conservatives on course for a majority government after Thursday's UK election, which would end the Brexit uncertainty and prove the most favourable outcome for GBP." It appears that a Tory majority is almost now certain, but many traders are waiting to see as the high number of undecided voters could affect the election outcome.

Undecided voters

According to Elsa Lignos of Royal Bank of Canada, undecided voters could really change the election outcome. As she said: “There are two main possible outcomes for this week’s election which will shape the UK for possibly decades to come: (1) A Conservative majority government (exit from the EU at end-Jan on terms of Withdrawal Agreement and then still TBD, the free trade agreement that has to be negotiated by the end of the transition period); (2) A hung Parliament that would see a further delay to the UK’s EU exit and potentially a second referendum. Bookies odds show a Tory majority as a near certainty, in line with the steady gap in most (but not all) opinion polls. But there is a historically high number of undecided voters which could affect as many as 80 marginal seats. We will be neutral GBP going into Thursday and look to trade the outcome.”

Final push

The Telegraph reported that Boris Johnson will visit on Monday Leave-supporting constituencies in England and Wales to urge them to reject Jeremy Corbyn’s “great betrayal” of Brexit and Labour politicians “who sneer at your values and ignore your votes.” He is expected to tell voters in Sunderland later on Monday that "The Labour party has let you down," while Parliament has "bent every rule and broken every convention as it has delayed, diluted and denied Brexit.” Johnson’s message will be that a vote for his party is a vote to "get Brexit done and unleash Britain's potential.”

On the other hand, Labour, will turn towards the economy by highlighting their radical programme of nationalising utilities and the Royal Mail, as well as investing in public services, and creating new rules for businesses and homeowners in the first 100 days of a Corbyn administration.

UPFX

If you are moving funds overseas and want to secure access to the best exchange rates possible, get in touch with a currency specialist such as Universal Partners FX. UPFX has years of experience in transferring money overseas, fast, securely and with low costs. With their online payment platform for 24-hour international money transfers and experts monitoring the market, UPFX is the best choice for your international money transfers. From managing market volatility and protecting your money from currency fluctuations, UPFX’s team will provide you with the certainty you need.

Buying property in Canada is very attractive to expats, considering the affordability of Canadian housing prices, the good healthcare system as well as the country’s natural beauty and safety.

Who can buy property?

Everyone can buy property in Canada, and foreigners or non-residents who stay less than six months a year in Canada can do so without the need to apply for residency. However, if you buy property and plan to stay longer, then you have to immigrate and apply for permanent residency. If you don’t plan on living in the country, then you can rent your property and pay a 25 per cent withholding tax on your rental income which will be deducted from the monthly rent.

Fees and Taxes

In general, though, everyone, whether a Canadian or foreigner, must pay the same fees and taxes when buying real estate. However, different rules might apply when it comes selling your property or buying property in certain jurisdictions where higher property or land transfer taxes exists. Taking a mortgage will also need to be at a Canadian bank and will require you to pay a 35 percent of the purchase price as a down payment compared to the five or 10 per cent paid by Canadian residents.

Housing market

The housing market in Canada is ideal for buying property as prices have dropped, making even larger and more expensive cities such as Vancouver and Toronto appealing. From the East Coast, to Central Canada and the West Coast, expats have many choices, including affordable cities such as Calgary, Montreal, Winnipeg, Saskatoon, and Ottawa.

From detached homes, attached townhouses or apartments, there is a wide range of choices so it is wise to start searching online to get an idea of what you prefer and what properties are available.

 According to the Chief Economist of the Canadian Real Estate Association (CREA), Gregory Klump, “It’s a full-blown buyer’s market or on the cusp of one in a number of housing markets across the Prairies and in Newfoundland. Homebuyers there have the upper hand in purchase negotiations and the mortgage stress-test has contributed to that by reducing the number of competing buyers who can qualify for mortgage financing while market conditions are in their favour.” Following statistics released this month by CREA, home price trends have stabilised in Calgary and Saskatoon, but home prices in Edmonton and Regina dropped. On the other hand, in Greater Vancouver (GVA) and the Fraser Valley, prices have started to slowly recover. Price growth also continues to recover in the Greater Golden Horseshoe.

In a Huffington Post article, originally published in Livabl, it is argued that in the new year home sales in Canada are expected to rise, which is good news for those buying property in the next few years.  After rising in 2016, and falling in 2017, 2018 and 2019, Canada Mortgage and Housing Corporation (CMHC) is now forecasting that the market will see a surge. With the release of its 2020 outlook for the national market, CMHC expects sales to continue in Ontario and British Columbia’s major markets due to “disposable income increases for the two provinces that exceed the national average and strong demographic-driven demand for housing.”

Despite the housing market’s decline the last two years, CMHC believes that home prices will soon rise, especially in Ontario and Quebec which are expected to drive growth in 2020, and British Columbia in 2021.

Buying property in Canada: your finances

If you are getting a loan as a non-resident, then you will need to provide a down payment of 35 percent and get a loan at 65 percent of the purchase price. Any mortgage would have to be raised by a Canadian broker or bank, as foreign banks cannot register mortgages in Canada. As is the case generally, you will need the services of a Canadian lawyer or notary so all documents regarding the mortgage and land registration are prepared and submitted. As you are borrowing funds, you will need to organise your finances and consider the overall costs, which includes the purchase price, property transfer tax (one percent of the first 100,000 CAD, and two percent on the balance), bank appraisal fees, inspection fees, insurance costs and closing legal fees.

If you are considering buying property in Canada, you will also need to discuss how to transfer your funds with a currency specialist such as Universal Partners FX. UPFX will offer invaluable help when transferring large amounts of money internationally, especially in a volatile market which can affect the value of your transfers. UPFX’s foreign exchange specialists can navigate the complexities of currency markets and ensure that your funds are transferred without any hidden costs and in then most cost-effective manner. Give them a call today to find out how much they can save you on your international payments.

The British pound fell after parliament rejected the government’s programme motion to accelerate the timetable for the withdrawal bill, with 308 votes in favour and 322 against. The defeat means that the government will now be unable to leave the EU before the end of October. The potentially good news for the pound and politics more generally, is the likely elimination of a no-deal scenario, as the EU has shown its willingness to offer an extension to Britain’s 31 October deadline for leaving the bloc.

Jeremy Stretch, head of G-10 currency strategy at Canadian Imperial Bank of Commerce, said in a Reuters report that, “For now it seems the market is still generally expecting this is a setback, but not a fatal setback, to a negotiated Brexit. There hasn’t been a rapid uptick in no-deal pricing at this point.”   

Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo, added that, “The pound will adjust in a narrow range for the time being. For now, the risk of a no-deal Brexit has receded, but there are still political uncertainties.”

The EU wants to avoid a detrimental no-deal Brexit, as a former Tory Europe minister, also confirmed on the BBC’s Today programme. He said that the EU would not want to be blamed for a no-deal Brexit, so they will offer an extension. As many MPs noted, he said that the withdrawal agreement bill was bigger than many anticipated, and that the government should offer more time in order to get it through parliament. He said: “I see no way that the October 31st deadline can be met anyway now the bill has been paused in the commons. I think the fear in Downing street is partly of rafts of amendments to the bill, but also about the difficulty of governing without a majority ... There are broader questions that underly the disputes about the timings of the Brexit bill.” For him, an election at the end of November or early December was possible but the public won’t be very open to an election just before Christmas.

What happened on Tuesday?

While the withdrawal bill was passed by MPs on its second reading, by 329 votes to 299, 20 minutes later, the government’s programme motion was defeated. The news of passing the Brexit deal was welcomed by the government as Johnson praised MPs for having “embraced a deal.”

But the defeat on the programme motion by 14 votes is a significant blow to the government and could derail the process. 

What is a programme motion?

A programme motion is put forward after a government bill has passed its second reading and can be used by the government to set the timetable for debating it as it progresses through the House of Commons. The defeated programme motion on 22th of October argued for a very specific and limited timetable which allowed three Commons days for the entire process– giving enough time so the UK could leave on 31October. The argument goes that the proposed timetable was narrow and didn’t leave enough time for debate.  

What happens now?

On Saturday, Johnson wrote to the EU to formally request a delay to Brexit until 31 January. After the defeat on Tuesday, he noted that would “pause this legislation” and await from the EU to grant a possible extension. While during Tuesday’s debate Johnson promised to pull the bill and seek an election if there was an extension, he left the possibility of a short delay open. As he said afterwards, “One way or another, we will leave the EU with this deal.” 

A general election is, however, likely, especially if the EU proposes a lengthy delay. With a no-deal Brexit no longer in the cards, it is expected that Labour will support a general election.

Many believe, that despite his declarations against a lengthy delay, Johnson aspires to be the prime minister known for delivering Brexit, so he might attempt to push the bill through parliament before an election.

Paul Dales, Chief UK Economist with Capital Economics, said that a short delay is now possible and would not hurt the pound: "A delay to Brexit now appears the most likely scenario and the chances of a near-term deal have diminished a bit. A short delay to finalise a deal would not be a blow to economic growth and the pound, especially if it were followed by a deal that would eventually prompt both to rise. In that case, we suspect the Pound would climb pretty quickly."

On a lighter note, Guy Verhofstadt tweeted that on the event of an extension, he would be submitted to “another three weeks listening to Farage,” whose Eurosceptic rhetoric is not sonorous to European ears.

Transferring funds abroad?

Are you transferring your hard-earned money overseas while the pound is buffeted by Brexit news? Get in touch with leading foreign exchange specialists Universal Partners FX now and find out how they can assist you with your international money transfers. Their expert currency specialists can help you gain access to the best exchange rates possible, while managing market volatility and protecting your money from currency fluctuations.

The pound has been experiencing its ups and downs but was knocked down on Thursday morning due to a statement by the DUP. After it had reached four and five-month highs against both the dollar and the euro in a week that was filled with expectation for a deal, Thursday morning’s setback wiped away most of yesterday’s gains. However, if a deal is announced, it is expected to rise again.

Brexit deal and the pound

Talking to BBC Radio 5 Live's Wake Up To Money, Neil McDonnell, chief executive, ISME, representing over 10,000 small and medium sized Irish business, said that positive news in regard to the deal will be good news for the pound, and for the Irish economy too. He said: "For business people, what you don’t want is an enormously complex or administration heavy transaction. One of the industries that have been most badly affected by Brexit has been the mushroom sector because of the decline in sterling. ‘Good news’ out these latest talks might help sterling bounce. Any appreciation in sterling would make things considerably better for people on this side of the border."

Talking on the same show, James Bevan, chief investment officer at CCLA Investment Management, added: "[There's] a general expectation that Mr Johnson will secure a deal with the EU so the currency markets have been relatively strong…. Let me be very clear, the pound is undervalued if there is a deal.” But it could hit parity with the dollar in the absence of no deal.

DUP concerns

The DUP’s statement from Arlene Foster and Nigel Dodds said that “as things stand, we could not support what is being suggested on customs and consent issues and there is a lack of clarity on VAT. We will continue to work with the Government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom.”

The statement clarifies that the DUP is unable to accept the deal as it stands but remains open to discussions. This could mean that the ball is now in the EU’s court and that Michel Barnier would need to compromise on the customs arrangements, consent and the issue of VAT.

What could happen now?

It is possible that the Prime Minister Boris Johnson proceeds to offer more concessions, but this is unclear and could possibly destroy the possibility of a deal.

But, it could also lead to the EU compromising. This is also a complex possibility as the issue of borders is a significant obstacle, and the EU is concerned with protecting the single market from the movement of rogue goods. Without border checks this is not a viable alternative.

A third possibility would be a change from the DUP itself. They have already stated: “We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom”. So, there may be changes.

Pound and headlines

Volatility will continue as headlines will affect the price of the pound, with further changes through the course of the day. With ongoing negotiations between the EU and UK, and the EU summit commencing on Thursday, markets will be vigilant awaiting confirmation that the two sides have reached an agreement.

According to Quek Ser Leang, a currency market analyst quoted on Pound Sterling, "While the current rally is overbought, it is too early to expect a sustained pull-back. There is still room for further GBP strength but the pace of any advance is likely to be slower.”

Analyst Kim Mundy, with Commonwealth Bank of Australia, also agrees that a deal could boost the pound: "The EU’s leader’s Summit begins today. Market participants are waiting for confirmation (or otherwise) that the EU and the UK have reached a new Withdrawal Agreement. News of an EU‑UK deal today could see GBP/USD hit a fresh five‑month high above 1.3000."

Transferring funds abroad?

If you are worried about currency volatility and the uncertainty over Brexit, contact a foreign exchange specialist such as Universal Partners FX. UPFX’s experts have years of experience in transferring money overseas delivering funds safely and securely. If you want to safeguard your finances or your business, avoid huge bank fees and get competitive rates, UPFX is your choice. Get in touch with them today, to get the best deal on your international money transfers.

With the Brexit deadline looming, many Brits are relocating or buying their property abroad, making such European countries as Spain, Germany and France their home. In Germany, the standard is usually renting, but when Germans are making their dream of owning “my own four walls” (die eigenen vier Wände) a reality, then they expect to buy a property to live in for life. This is not unlike many of the Brits deciding to buy a property in Germany. German property has generally been a stable, reliable investment for local and overseas investors.

Brexit and the German property market

It’s not just Brits wanting to escape to Germany, but also international investors who are considering investing due to Brexit and the ensuing financial uncertainties. Buying property in Germany may be a great option, especially when the German economy is healthy and the property market is strong, with prices rising steadily. While Brexit might have deflated London’s real estate bubble, very low interest rates are pushing prices in Germany’s Munich and Frankfurt property markets. With prices rising steadily for years, there is greater risk of them falling unexpectedly.

Low interest rates

In Germany, low interest rates have helped increase real estate valuations. The European Central Bank’s loose monetary policy and low interest rates have benefitted owners of financial assets who have borrowed at very low costs to buy property or stocks in search for better returns.

According to a new report by analysts at Swiss bank UBS, Munich is at the greatest risk of a real estate bubble, while Frankfurt has seen prices rise by double-digit percentages. Frankfurt used to be "very cheap compared to London and other cities,” told CNN Business, one of the report's authors, Matthias Holzhey. While building activity in Frankfurt rose significantly in 2017, the rise in population led to an 80% increase in real price growth over the past decade, the report showed.

Germany as “safe haven”

Germany is a great European alternative to London’s traditional appeal, with Frankfurt and Berlin being particularly high in demand. Germany has a reputation as a “safe haven” making it attractive to buyers, with an increasing number of international investors from Asia, the Middle East and the United States.

In general, across Germany, rents and property prices are robust, but whether this is sustainable in the long run, remains to be seen. According to data released in 2018 by the Bundesbank properties in towns and cities could be overpriced by as much as 15-30%. As it was reported by the Bundesbank’s experts, there have been continuing price exaggerations in urban areas: “While price dynamics, from a macroeconomic perspective, were largely consistent with developments in the supply and demand-side variables, housing prices in towns and cities were still well above the level that appears justified by the longer-term economic and demographic determinants.” The economists estimated “upward price deviations for towns and cities at between 15% and 30%.”

However, buying a property in some places in Germany is affordable and should not deter Brits from making their decision to move there. Expatica noted that data from the German consumer organisation Stiftung Warentest in 2017 showed “that buyers in Magdeburg and Cottbus could buy a 130 square meter family home for €200,000, but that for the same money they’d get a small two-room apartment in Cologne or Dusseldorf, and only a dorm in Munich.”

Based on data from the third quarter of 2017, a house in Munich could be as high as €5,839 (apartment), €4,233 (family home), whereas in Cologne and Hanover €2,671-€2,257 (apartment), €2,240-€2,007 (family home), respectively.

Buying a property: costs

After doing your research in various property portals such as immobilienscout24 or immobilo, take your time to decide which property is most suitable for you and your family. When buying a home in Germany, you will be expected to pay 10% of the purchase price to cover the property transfer tax (3.5–6.5%); notary’s fees (1.2–1.5%); registration fees (0.8–1.2%); and estate agent’s fees (1.5–3%, plus 19% VAT).

One of the very important decisions you will also have to make is to choose an expert firm in foreign exchange who will help you with making regular transfers and protecting your funds from currency volatility. Universal Partners FX is a great option for anyone buying property abroad, as they are experts in helping expats like yourself move their hard-earned money abroad. Get in touch with their dedicated currency specialists and find out how much they can save you on your international money transfers.

Trade Secretary Liz Truss said that countries outside the EU want Britain to “get on with” Brexit in order to begin striking free trade deals. This of course does not mean that Britain is in a desperate situation, as a Bloomberg article argues. In fact, London remains the epicentre of the financial world and Brexit just cannot simply erase London's “trading allure,” according to foreign-exchange market data.

Liz Truss on Tour

During her tour of Australia, New Zealand and Japan, Liz Truss said that senior figures she met in these countries expressed their desire to reach agreements with the UK very "quickly.” She said: "They just want us to get on with it. And what they care about is deepening our relationships with them. And also they want Britain to be at the table at the World Trade Organisation making the case for free trade."  

In the process of drawing a post-Brexit trade agreement with Japan, Truss argued that Brexit would be a positive thing, attracting new businesses to Britain and she called such businesses to express their views on what the deal should contain. Truss clarified that countries such as Japan, Australia, New Zealand and the US were considered "like-minded" countries with which the UK can begin striking its trade deals after Brexit. She said: that these are “all countries who are like minded, they're democracies, they believe in free enterprise and free trade, and we want to work with them to promote those ideas across the world." This is important for Britain in order to reach bilateral trade agreements in areas such as financial services, artificial intelligence and technology.

In regards to foreign leaders’ "massive enthusiasm" to strike trade deals with the UK, Truss said: "In Australia, from the Prime Minister downwards, everybody in the government is very, very keen to move forward with the deal with the UK, and restore some of those historic ties, which may have been diminished while we were part of the EU. The way I see it is that Australia and New Zealand are old friends ... with which we've got new opportunities." She continued: "There is a real enthusiasm for getting on with it. I heard that today from ministers in Japan. They want the deal done as quickly as possible. And I heard it in New Zealand and Australia as well." 

Delivering Brexit

She noted that ministers needed to resurrect the public’s lost trust in delivering Brexit on time despite previous delays. Truss warned that voting alongside Jeremy Corbyn was "hugely problematic" and that Tory MPs needed to be "backing the prime minister to the hilt."

Truss urged that now is the time that "we need to be looking forward and looking at the opportunities of Brexit. I think there's too much navel gazing going on at the moment about what's happened in the past. The whole point of Brexit is taking control over any rules and regulations, being able to strike free trade deal for the first time in 45 years. There's a huge world out there, which is incredibly enthusiastic about that potential and possibility. And that's what we will move on to."  

She underlined that, "We simply need to deliver Brexit. And the Prime Minister is being very clear. He won't be seeking extension, we are going to leave the European on the 31st of October. And that takes the wind out the Brexit Party sails."  

London remains the “epicentre” of the financial world

For Truss, getting on with Brexit cannot be disastrous, and this is also supported by a recent article by Bloomberg columnist John Authers. According to Authers, Brexit cannot diminish London’s appeal as a global financial centre. As he writes, “The foreign exchange market remains by far the world’s largest and deepest. It is where the world’s financial imbalances are resolved. And London’s grip on that market remains stronger than ever. Amazingly, given that London’s access to the EU’s financial markets will be weakened under virtually any version of Brexit, its hold over foreign exchange trading has only tightened in the three years since the referendum.”

While many banks and investors might have arranged to move part of their operations to Paris or Frankfurt, the truth is that they have not yet done so. Authers points out to the latest findings of the Bank of International Settlements’ triennial survey of the foreign exchange and interest rate derivatives markets, published last week, and which shows the market shares of the U.K and the U.S., of all foreign exchange trading.

As the survey shows, London hasn’t lost its appeal, and this is due to certain advantages. It is, in fact, that London’s natural trading day “overlaps at least a little with the main markets in Asia and the U.S.,” as well as the use of the English language, and mainly the “huge pool of FX-knowledgeable talent,” that continue to give it an advantage. As Authers admits, against his own beliefs, is that the survey surprisingly proves that the Brexit vote has not yet caused “irreparable damage to the City of London.”

Importers and Exporters: Universal Partners FX 

While there are positive voices around us about Brexit, volatility and a weaker pound might continue to affect foreign exchange and transferring money abroad. If you are an importer or exporter making regular payments, the best option for you is Universal Partners FX. UPFX’s specialists in foreign exchange will help you take advantage of expert knowledge and strategic financial planning and will provide valuable guidance to protect your business from the risks of a volatile currency market. Get in touch with them today and find out how much they can save you on your international money transfers.

 

Moving to Italy and buying property might be a dream for many, but what happens when Brexit is looming on the horizon and your EU status is suddenly questioned?

Brits can buy a property in Italy, despite being from the EU or not, so Brexit won’t have a big impact on your decision to buy property there. However, as with other European countries where Brits are relocating or buying a property as residents, you will have to register as a resident in Italy, check whether your passport is valid for travelling, exchange your UK driving licence for an Italian one, as well as register for healthcare. So, buying property in Italy means also deciding about your residency as you must register as an Italian resident if you are considering staying there for more than three months. 

Residency

If the UK leaves the EU with a deal, the rights of all UK nationals living or working in Italy legally will be recognised by the Italian government. However, if there is no deal, UK nationals living in Italy will have to get a non-residence permit by 31 December 2020 to protect their rights to work, healthcare and social benefits.

When it comes to buying a property after Brexit, being a non-resident and non-EU national, will mean that you will have to use the house as your holiday home, while only being allowed to stay there a maximum of 180 days per year, but only 90 days at a time. If you buy the property as a resident, then you will have to live there for over half the year and state that the property is your main residence. This will lower the amount of money you have to spend on purchase and local taxes.

Buying a property

Buying a property in Italy is usually performed by a notary who is a qualified lawyer to conduct the transfer of the property between the seller and yourself. The notary will prepare the deeds, check for outstanding charges, and make sure that the property meets required standards. They will also make sure there is a translator present when you sign the legal contracts. The translator might cost you a couple of hundred euros.

As a buyer, you will pay the purchase taxes and the notary’s fees. The notary will be paid approximately 1-2 percent, depending on the price of the property.

Buying property as a resident or non-resident, as well as from a private individual or a company are factors that will affect the kind of taxes you will have to pay for your property. Buying from a private individual will involve paying the cadastral fee which is defined by the property’s size and location. Additionally, if you’re buying as a non-resident, you will have to pay taxes on the cadastral value, as well as smaller taxes. While buying a house as a resident will involve lower taxes and obtaining a residency permit within the next 18 months, only do so if you intend to become a resident, otherwise, you will still have to pay the relevant taxes plus a penalty of 30%.

For a property bought from a company, you will pay a similar cadastral value on the property as buying it from an individual, especially if you’re buying as a non-resident, but buying as a resident the taxes will be much lower. A more favourable situation arises when you buy a winery or a country property which will demand you to pay much lower taxes (just 1 percent on the purchase price in tax). If you are buying an Italian company for commercial use, then you only pay a few fixed fees and no taxes.

Can I buy a property in Italy immediately?

While the time depends on the individual case, you can usually finalise a sale within approximately 10 weeks, as there is paperwork to be completed, registrations to be updated and other related issues that might arise. If you arrange power of attorney, this might take longer, but if you are present yourself and the property is ready to go with all the relevant papers in place, then you are all settled, and the process can be quick.

In case, however, you don’t have the relevant funds in place, but you have fallen in love with a property, then it is possible to sign a purchase agreement in order to reserve it for maximum a month until you can sign the preliminary contract.  Paying a deposit of around €2,000 – €10,000 will protect you against any legal issues, but you will be unable to get it refunded if you no longer wish to buy the property.

Buying a property in Italy with a limited budget is also a possibility, as there are village houses or unrestored old properties that are much cheaper than modern buildings or properties in expensive areas such as Tuscany.

 

Foreign exchange specialists: Universal Partners FX

Whether you are on a limited budget or you can afford a luxury villa, you are still concerned about the value of your funds when you exchange them into foreign currency. In terms of currency volatility, things in Britain haven’t really changed. The prospect of a no-deal Brexit is extremely possible as the latest updates show.

With the Internal Market Bill fiasco and a continued stand-off over fishing rights, a no-deal may be the most likely outcome. Any news that comes out between now and the end of the transition period will certainly affect the euro rates one way or another. For example, if the Internal Market Bill is upheld, this will likely lead to legal action being taken by EU and further jeopardising a deal. Ongoing Covid-19 impacts will also affect the economy and the pound, but eyes will be on the EU as they consider more stimulus packages that will further increase debt and impact the euro.

One thing is for sure, it is hard work keeping track of rates so it is important to protect your funds by getting assistance from a currency specialist such as Universal Partners FX. UPFX can offer you the best possible exchange rates and can even fix exchange rates in advance to avoid market movements costing you money. Contact us today to find out how much money you can save on your international money transfers.

Brexit: Buying Property Abroad as Pound Tumbles

Buying property abroad has become more complex the last few years as Brexit uncertainty and the pound’s volatility continue to negatively impact the UK economy, with fears of a recession increasing.

Brexit update

On Tuesday (3/9), the pound experienced increased volatility, reaching its lowest level  in 34 years, from which it rebounded, as rebel Tory and opposition MPs attempted to block a no-deal Brexit. The prime minister Boris Jonson was eventually defeated. According to the so-called Benn bill, if he is unable to reach an agreement with Brussels in the next few weeks, he will have to delay Britain’s departure from the European Union until 31 January.

Sterling dropped due to fears of a snap general election, reaching its lowest level in more than three decades, with the exception of the October 2016 “flash crash." Ahead of the vote, and after Tory MP Philip Lee’s defection to the Liberal Democrats, it rose slightly.

“For all the uncertainty that lies ahead, markets see a Boris Johnson led no-deal Brexit as the worst-case scenario and thus treat anything that undermines that as pound positive,” said analyst at IG Joshua Mahony.

According to the Independent, a Bloomberg survey last month, showed that a delay was seen as the most positive outcome for the pound. Sterling has tumbled significantly since the EU referendum in June 2016.

Boris Johnson’s defeat by a margin of 328 to 301 on Tuesday, has put the prime minister in a precarious position, and has wounded his rhetoric of no-deal. As a result of his defeat, the prime minister said he would table a bill to trigger a general election, but Labour said it would not back his election motion, which requires a two-thirds majority to pass through the Commons.

On Thursday, the House of Lords voted in favour of getting the Benn bill, that will rule out a no-deal Brexit, through all the stages of parliament by Friday afternoon.

Buying your dream abroad

For many, the decision to buy a home abroad is not significantly affected by Brexit. They have prepared and have done their research and are confident that their decision is final. For them, consulting a leading expert in transferring money abroad has also given them peace of mind. Foreign exchange specialists such as Universal Partners FX have years of experience in international money transfers and can navigate volatile currency markets, saving you money and time. So, considering the current volatility and the weakness of the pound, getting help from UPFX will help you significantly when you make large international transfers to buy property abroad or pay related costs.

Residency rights

Due to the fact that many Brits are already living in countries such as France and Spain, and with more EU countries guaranteeing British expats post-Brexit grace periods, British expats are slightly less worried about Brexit, especially the ones already living there. As many European countries have pledged to offer legal residency rights to British expats in return for the same rights for European nationals residing in the UK, it is hard to see that certain freedoms will completely eclipsed after Brexit. For example, the Italian government has announced that British expats will remain legal residents in the event of no deal, while the Spanish authorities are saying British expats will have the same rights in Spain post-Brexit as long as Spaniards already living in the UK are offered the same residency rights.

France has also made sure to clarify its position on residency by passing a bill in the case of a no-deal Brexit, followed by a government decree. Like other European countries, France will apply these rights as long as the UK does the same for French nationals living in the UK. After Brexit, for example, Britons in France will have six months to apply for a residence card. During the one-year transitional period Brits will continue to have existing rights over residence, work and benefits, while they can enjoy access to healthcare for two years after Brexit. Remain in France and the UK government website provide more details.

So, if you are buying a home in a European country, you need to consider all the complexities of life abroad after Brexit. More importantly, as the pound continues to fluctuate, getting expert help from a foreign exchange specialist such as UPFX, will prove to be extremely beneficial especially when you are transferring your hard-earned money. Get in touch with them today for a quick quote and find out how much you can save on your international currency transfers.

With a no-deal Brexit most likely happening in a couple of months, experts have warned about how unprepared many trading companies are.  Service industries, such as finance make up 79% of the British economy and account for 45% of UK exports. A no-deal Brexit means that these service providers would lose access to European markets and might have to comply to new rules and regulations. According to Bloomberg Economics, in a “more benign no-deal scenario growth will probably slow sharply, while a more disruptive outcome would make a recession highly likely.”

The prime minister Boris Johnson has pledged to leave the EU by 31 October with or without a deal. Without a withdrawal agreement in place, the UK will crash out of the EU, lose its access to the single market and revert to the World Trade Organization (WTO) rules, having to deal with complicated restrictions and tariffs on exports. For many economists and business organisations, a no-deal Brexit will simply be disastrous for the economy.

Trading post-Brexit

While the UK has enjoyed tariff-free trade, after Brexit the UK will have to pay tariffs on UK goods and services. The change will hurt the UK economy, cause delays and increase costs and controls. Particularly, many financial companies are planning to move part of their operations to Europe to counteract the loss of access to their EU “passporting” rights and secure the smooth trading of goods and services with the rest of the world.

Similarly, UK prices will increase for EU imports such as food and cars. Cars will get a 10% tariff, clothes and linen a 12% tariff, while the UK will impose import quotas on beef, lamb, fish, poultry and swine.

The Bank of England has warned that Britain has one in three chance to plunge into a recession the beginning of the next year, as uncertainty over Brexit continues to affect the economy. In this climate, British businesses are stockpiling goods or plan to do so, as a hard Brexit will create problems at ports and hurt supply chains.  

Trading companies not prepared for Brexit

Carol Lynch, partner in Customs and International trade with the accountancy group BDO, said that only half of importers and exporters have signed up for the basic trading requirement. She said: "When we are looking at client reviews in terms of planning, the first question - particularly for vendors and suppliers - is have you got an EORI number. If you haven't, that's a very good indication that you haven't given any thought to future planning, deferred planning, tariffs, haulier preparations. The EORI is the very basic requirement.” For her, both imports and exports will be seriously affected by trade barriers. Lynch clarified: "Imports are especially important for consumers and manufacturers. Goods purchased from the UK and 80% of goods coming from Europe and outside of Europe come through the UK. It's critical and we'd be working with hauliers in making sure drivers are prepared and the right paper work has been handed in. Whatever chance you have of not being delayed is based on your preparations, that you know how to complete import declaration, that it's cleared and that you have that clearance slip in the cab so the driver knows what to do when they drive off the boat. There are a number of steps to ensure you can minimise the risk of delays which are, to a certain extent, inevitable.”

According to the Financial Times, France is already preparing for a no-deal Brexit by planning to trial an electronic customs system. The trial of the electronic customs system will commence in mid-September in Calais, ahead of a possible no-deal Brexit on 31 October. French minister in charge of customs Gérald Darmanin told French radio station RTL: “For a month, we’re going to pretend there is Brexit. For a lot of companies, we are going to have a sort of dress rehearsal so that we are ready at the end of October.”

If you are an importer or exporter, you must have experienced the general pessimism and uncertainty surrounding Brexit, while you might have been affected by the weak pound. If you want to protect your business and financial transfers, contact Universal Partners FX. UPFX will offer valuable support and assistance when transferring money internationally while tailoring hedging strategies to your business’ needs. Give them a call today and find out how much you can save on your international money transfers.