Sending money to Spain without losing on fees

If you are moving to the Costa Blanca from another country, sooner or later you need to move money: to buy a flat, cover monthly expenses or transfer your savings. And the difference between doing it right and doing it wrong can be hundreds — or thousands — of euros a year. Your high-street bank seems the safest option, but it is almost always the most expensive. This article compares the real options, with figures and without hidden advertising.

The problem: exchange rates and hidden fees

When you transfer money between currencies (pounds to euros, dollars to euros), two costs determine how much you receive:

• Exchange rate: the price at which your pounds/dollars convert to euros. Banks typically apply their own rate that includes a 2-4 % margin over the real market rate (the 'mid-market rate' you see on Google). This margin is the biggest hidden cost.
• Transfer fee: the flat charge by sender and/or receiver. Banks charge €15-50 per international transfer. Some online providers charge €0-5.

Concrete example: you send £10 000 from the UK to your Spanish account.

• Traditional bank: exchange rate with 3 % margin + €25-40 fee. You receive approximately €11 250 (instead of ~€11 600 at the real rate). Hidden cost: ~€350-400.
• Wise: real market rate + transparent fee of ~£45-55. You receive approximately €11 530. Total cost: ~€70-80.

The difference: €270-320 in a single transfer. Monthly, that is €3 000-4 000 per year lost without noticing.

The options, compared

1. SWIFT bank transfer (the classic)

• Cost: sending fee (€15-50) + receiving fee (€0-15) + exchange rate margin (1.5-4 %).
• Time: 1-5 business days.
• Best for: very large amounts (property purchase) where your bank negotiates a preferential rate. For daily use, there are better options.

2. Wise (formerly TransferWise)

The expat standard. Wise uses the real market exchange rate and charges a fixed, transparent fee.

• Cost: 0.3-0.7 % commission (varies by currency route). No hidden exchange rate margin.
• Time: 1-2 business days (sometimes hours for popular routes like GBP→EUR).
• Advantages: total transparency, real exchange rate, intuitive app, multi-currency account.
• Limitations: RUB transfers severely restricted or unavailable since 2022.

3. Revolut

• Cost: real exchange rate during market hours (Mon-Fri). Off-hours surcharge 0.5-1 %. Free account: 1 000 €/month fee-free exchange; Premium (~€8/month) or Metal (~€14/month) unlimited.
• Time: instant between Revolut accounts. 1-3 days to external banks.
• Advantages: card for spending directly in euros, mobile management.
• Disadvantages: customer support can be slow. Large amounts (100 000+) may trigger source-of-funds requests.

4. OFX / TorFX / Currencies Direct

Specialised in large transfers (property purchases, wealth transfers). Popular with British buyers in Spain.

• Cost: no transfer fee. Exchange rate margin 0.3-0.8 % (negotiable for large amounts).
• Time: 1-3 business days.
• Advantages: personal service (assigned agent), forward contracts (lock today's rate for a future transfer — useful for property purchases closing in 2-3 months).

5. PayPal / Western Union

Known but rarely the cheapest for regular transfers. PayPal: 2-4 % currency conversion fee. Western Union: fixed fees + exchange margin.

Practical scenarios

Monthly expenses (€500-2 000/month)

Best: Wise or Revolut.

Property purchase (€100 000-500 000)

Best: OFX, TorFX or Currencies Direct. Negotiate preferential rates, use forward contracts, managed payment logistics. A 0.5 % rate difference on €300 000 = €1 500.

Small one-off (<€500)

Best: Revolut (instant, free within limit) or Wise.

From Russia

Complex since 2022. Direct bank transfers RUS→ESP restricted by sanctions. Alternatives: Wise (limited/unavailable for RUB), cryptocurrency (with tax implications), community intermediaries, third-country routes (Turkey, UAE). Consult a specialist.

Mistakes that cost money

• Using your bank by default: 80 % of international transfer cost is the hidden exchange rate margin. Compare first.
• Not locking the rate for property: between signing arras and notary completion (2-3 months), rates can move 3-5 %. A forward contract eliminates this risk.
• Transferring at weekends: Revolut applies 0.5-1 % surcharge outside market hours. Schedule Mon-Fri.
• Not declaring large transfers: transfers over €10 000 to Spain must be declared on model S1. Non-compliance can trigger penalties.

Frequently asked questions

Are Wise and Revolut safe?

Yes. Wise has e-money institution licences in multiple jurisdictions (including EU). Revolut has an EU banking licence (via Lithuania). Both are regulated and funds are protected.

Can I hold euros and pounds in the same account?

Yes. Both Wise and Revolut offer multi-currency accounts. You can maintain balances in GBP, EUR, USD and convert only when the rate is favourable.

Which service is best for a property purchase?

For amounts over €50 000, specialised services (OFX, TorFX, Currencies Direct) typically offer better negotiated rates, forward contracts and personal service. For smaller amounts, Wise is more than sufficient.

Do I have to declare my foreign accounts to Spanish tax?

If you are a Spanish tax resident with foreign accounts whose combined balance exceeds €50 000, you must declare them annually on Modelo 720. Non-compliance can carry penalties. Consult a tax adviser.

What is the cheapest way for recurring payments?

Receive income in a multi-currency account (Wise/Revolut), convert to euros at market rate when favourable, pay from your Spanish account. Total cost: 0.3-0.5 % — versus 2-4 % at a traditional bank.

If you are planning your financial move to the Costa Blanca, explore our available properties or contact us for a personalised consultation.