As part of our continued support to assist our clients and to help you get more for your money, Sol Simple Properties have partnered with the leading currency specialists, EasyFX.

Whether you are making regular international payments or simply need to make a one-off transfer, fluctuating exchange rates can make a big difference to the amount of currency you finally receive in your bank account.

When choosing a foreign exchange partner to recommend to our clients, we look for certain qualities to ensure that our clients are looked after to the highest standards, securely and with integrity. This is why we are proud to recommend EasyFX.

Why use money transfer companies to send money abroad?
For international payments, specialist money transfer companies have several benefits. Whether you are buying or selling a property overseas or sending funds for livings expenses or bill payments, money transfer companies can offer very cost-effective ways to send money around the world.

Foreign exchange companies will offer more value for your money
When you send money overseas, you will obviously look for the best exchange rate possible. While many high-street banks offer an international money transfer service, regulated money transfer companies will offer competitive exchange rates and, in many cases, saving you up to 5%. Additionally, high-street banks often charge transfer fees as high as £30 per transfer. So over 12-month period, that will cost you nearly £400 a year in fees alone. Whether you are sending ad hoc money transfers or sending larger sums of money overseas, you will be keen to make the most of your well-earned savings.

Contact EasyFX now, take a second to submit the easy online form.

Foreign exchange companies are advantageous
Most foreign exchange companies will provide you with an online trading facility, allowing you to make transfers and manage your payments when it suits you. Along with this, you will be able to take guidance from experienced currency traders, who can offer a wide range of currency products. You will be able make a one-off international money transfer to pay bills overseas or even set up regular payments for mortgage repayments etc. Most foreign exchange companies will
also provide you with a dedicated account manager with whom you can discuss the volatility of the currency market and explain to you how to transfer funds to ensure a smooth and painless process. For example, did you know that you can fix the exchange rate for future payments even if you don’t have all the funds available immediately?

Buying property in a foreign country can feel overwhelming, given the unique processes and potential language barriers. To navigate this, we’ve outlined some key guidelines to follow, and we highly recommend connecting with a specialist before embarking on this journey.

Foreign Exchange and its Significance
When it comes to relocating or purchasing property abroad, one of the most critical factors to consider is Foreign Exchange. It’s a component that´s often overlooked but should genuinely be factored in from the very outset of your purchase journey. We recommend engaging with a specialist during the property viewing stage for a compelling reason: when you’re buying property in a different currency than that of what you hold, you become exposed to the unpredictable nature of currency fluctuations.

Consider that a property purchase in Spain can span anywhere from 3 to 4 months to complete. It’s not uncommon for currencies to experience fluctuations ranging from 5% to 10% within that period. Take, for instance, the GBP to EUR currency fluctuations in the past 12 months, with a high of 1.19 and low of 1.07. The question then arises: How can you eliminate the risk associated with these currency fluctuations?

Banks vs FX Providers
One of the primary advantages of using an FX provider is its potential to be more cost-effective compared to high street banks. When you deal with banks for currency exchange, they typically incorporate a substantial profit margin into the market rate, making it notably expensive, especially when you’re dealing with larger sums for international transfers. In addition to being cost-effective, FX providers specialise in managing risks associated with foreign exchange. This expertise allows them to effectively mitigate currency fluctuations by locking in exchange rates for future dates, this is achieved using a Forward Contract. This feature proves especially valuable for property transactions, where you can lock in the exchange rate at the time of agreeing on the property’s price with the seller or buyer. By doing so, you gain the ability to budget accurately, knowing the exact amount you’ll need to pay in currency at the completion of your purchase or sale. This financial security is a significant advantage when engaging in international property transactions. Buying and selling property abroad often takes time and may involve several currency transactions.

EasyFX can protect you from exchange rate volatility and make-substantial savings on your property transactions by delivering time-critical funds to your bank or solicitor on time.

If you’re interested in exploring how a Forward Contract could benefit your specific situation, please don’t hesitate to get in touch. Our team is ready to assist you in understanding and leveraging these financial tools
to your advantage.

Contact EasyFX now, take a second to submit the easy online form.

Next Article - Interior Design

Ready to sell  your property - Contact us today

Consider your potential buyer

What is the motivation for purchase from the buyer, is it for investment in which case they may well be considering other options, is it a more emotional purchase for an end user. Is their offer a considered one or are they just taking a chance? Can they fulfill other criteria such as purchase conditions and time scale for completion, what else is included? Could these items be negotiated?

Avoid getting emotional

Don’t be offended if the offer is too low. It is your agent’s obligation to submit any offer received. You can always reject it. Consider all items, terms and conditions of the offer before taking any decision. Make the best possible counter offer. Avoid arguing over unimportant issues and particularly over fixtures and attached elements, which normally are included in the sale. Be flexible if you have to compromise on time frame to accommodate the buyer’s wishes to move into the property.

Manage expectations

It is essential that you communicate clearly throughout the negotiation process, set a time scale for replies to offers and ensure all terms are layed out clearly from outset.

Decision time

Ensure you are completely satisfied before agreeing a deal. Do not make a rushed or pressured decision.

Facilitate the sale

If you are based overseas then leave a power of attorney with your lawyer enabling him or her to sign a private contract on your written instructions. In this day and age any negotiation can be conducted and agreed by telephone and e-mail. Once a deal has been agreed the last thing you want to do is delay proceedings. It may have a negative impact on the negotiation itself if having reached an agreement one party cannot complete in the desired timescale. 

Simplify the hand over

If you have services and utilities connected, make the agent aware. You have experience in handling and maintaining your home and the new owners will certainly appreciate any information or advice you may give them. It will make their life easier when they move in and help them to settle down smoothly in their new home.

Next Article - Transferring your money

Factoring in your margins

A golden rule of setting an asking price is to ensure that a reasonable margin for negotiation has been included. An inflexible asking price will result in a very short period of offer and more than likely a refusal if the vendor sets their absolute bottom price as the original asking price. During the negotiation process both vendor and buyer wish to feel as if they have achieved a desired result.

A vendor must ensure that when speaking to an agent that the asking price is also the “Gross” price as agency commissions can vary. In a scenario where a vendor lists their property with several agents simultaneously without setting a gross price there is a very real danger of the property being advertised at different prices. This will serve to confuse a potential buyer and undermine the vendor without the property even being viewed.

Selling Fees, taxes and retentions

Speak to your lawyer or a tax consultant in order to confirm current tax legislation as tax rules are subject to change.

• Real Estate Agency Fees - Before instructing an agent ensure that their fee structure has been set out clearly you.

• Legal Fees – Before instructing a lawyer ensure that their fee structure has been set out clearly to you and which services they will provide. Arranging a Power of Attorney and application for NIE may incur additional fees

• Capital Gains tax for non-residents from EU/EEA countries is set at 19% whereas non - residents from non-EEA countries is 24%. Capital gains tax in Spain for residents (remember, you will be considered a tax resident in Spain when you reside in the country for more than 183 days per calendar year). The amount of capital gains tax that residents pay is incremental. Therefore, as a resident, the Spanish capital gains tax applicable is: 19% for the first 6.000 € profit, 21% from 6,000 € to 50.000€, 23% from 50,000€ upwards, 26% from 200.000€ onwards. Tax relief is available if you have lived in the property for at least 3 years before selling and are reinvesting the profits in the purchase of a new main residence.

• Rentention - All non-resident sellers, regardless of when they acquired the property, are subject to 3% retention of the sales price, paid to the Tax Office by the purchaser on account of the seller, and applied against the seller’s capital gains tax. If the seller’s liability is less than the 3% withheld at the time of the sale, the seller can claim it back from the tax office. If higher, the seller will have to pay the difference to the tax office.

There is one exception regarding the 3% retention: when the property has been owned by the vendor, at the date of 31st of December 1996, for more than 10 years and when the vendor is an individual (not a non-resident company). Also there is no retention when the vendor is subject to the normal income tax for residents or to companies’ tax.

• Notary fees are fixed by law on the basis of a scale.

• Plusvalia - is a tax to be paid by the seller, although it may be subject of negotiation with the purchaser. It is a municipal tax on the increase in value of the land alone. Note that if the seller does not pay this “plusvalia” tax, it will fall on the property.

• Other property taxes - such as I.B.I, garbage collection tax, community fees if any as well as normal running costs such as electricity, telephone, water, etc. should be paid by the vendor up to the date when the property is transferred to the new owner. If these cannot be calculated exactly on that date, it is customary that the buyer or his/her legal representative requires that an amount of money is left in deposit to guarantee these payments.

Next Article - Negotiating

The Costa del Sol’s property market has always been competitive and therefore vendors without local experience could benefit from expert guidance as to how to go about marketing and selling their property.

As a seller use the following guidelines:

• Price your house realistically
• Take into consideration how much you are willing to accept
• How long you are willing to wait
• It is better to establish the right price from the beginning

Properties prices are determined by a number of factors and market drivers, from recent comparable sales, pricing per square meter to current condition of the property.

The key to any sales strategy is establishing the right asking price. Asking too much for your property can significantly reduce the amount of potential buyers wanting to view it resulting in a property facing the prospect of going stale.

Establishing the right asking price is therefore essential and should be one that would allow your property to be sold within a reasonable time scale at a reasonable price.

There are many useful considerations when determining the price you wish to set for your property.

• The asking price must be realistic when comparing to current market conditions
• Be aware of prices being asked for properties similar to yours in comparable locations
• How long have comparable properties currently for sale been on the market
• Find out how many comparable properties have been sold, and at what price and over what time span
• Have your more immediate neighbour´s sold their property, what did it sell for? How long was it on the market?
• How much it will cost to build a new property like yours. This is called replacement value
• Once a market value has been established you can then determine how your property compares.
• Is it unique, which will allow you to ask a higher price?
• Although it will incur an expense a vendor can always obtain an official valuation from an independent firm of valuers. This valuation will cost a few hundred Euros but is most useful especially if the potential buyer requires a mortgage to acquire your property.

Sol Simple Properties has plenty of experience in the local market, and extensive knowledge of property values on the Coast which enables us to assist setting an asking price for your property. Fixing the right price is important to reduce the time your property will be on the market.

Next Article - Financial considerations