Buying property in Spain
A Spanish purchase runs to three payment dates set by the seller's lawyer, not by you — and the months between them are where a sterling budget quietly becomes a euro problem. The mechanics below are what actually drives the currency decision.
- Typical timeline
- Commonly two to three months from reservation to completion at the notary.
- You pay in
- euros (EUR) · live GBP/EUR rate
Where the currency risk actually sits
Your price is fixed in euros on the day you sign, but you are paying it in sterling on a date weeks or months later. A 4% move in GBP/EUR over that window changes the sterling cost of a €400,000 home by around £14,000 — with no change to the property, the price, or anything you agreed.
The binding contract
The contrato de arras is the point of no return: once signed, a buyer who walks away normally forfeits the deposit, and a seller who walks away typically repays double. From that signature the completion price is fixed in euros, whatever sterling does next.
When the money actually moves
A purchase in Spain is a sequence of payments on dates set by the process, not by you. Each one is a separate conversion.
| Stage | Typically | What it means for your rate |
|---|---|---|
| Reservation | A small fixed sum, often a few thousand euros | Small enough that the rate barely matters — but it starts the clock on everything that follows, so it is the moment to work out your exposure. |
| Contrato de arras | Typically around 10% of the price | The first payment large enough for the rate to matter, and the point at which the total euro cost stops moving. Fixing the rate for completion is usually decided here. |
| Completion at the notary | The remaining balance | The big one, on a date you cannot move. Funds have to be in euros and cleared for the notary appointment, so a payment that arrives a day late is a problem that costs more than any rate. |
What catches UK buyers out in Spain
You need an NIE (foreigner's identification number) before you can complete, and applying for one takes time you should not discover late.
Purchase costs on top of the price — transfer tax, notary and registry fees — are real and are also payable in euros, so budget the currency for them rather than only for the headline price.
Spanish banks are strict about the source of incoming funds on a property purchase; a transfer arriving from an account in a different name to the buyer commonly gets held.
This guide covers the currency side of a purchase in Spain. Property law, tax and residency rules change and vary by region — take local legal and tax advice before you commit to anything.
Buying in Spain — common questions
When should I fix my GBP/EUR rate when buying in Spain?+
Most buyers fix at the arras signature, because that is when the euro price becomes certain and the completion date becomes visible. A forward contract holds today's rate for settlement up to 24 months out, so the sterling cost of your completion stops depending on the market.
Can I pay the notary directly from a UK bank account?+
You can, but it is where most of the cost hides. A UK bank converting sterling for a Spanish completion typically builds 3-4% into the exchange rate, which on a completion balance is a large sum for a transfer you only make once. Converting through a specialist and sending euros is the same payment at a better rate.
What happens if sterling falls before completion?+
If the rate is unfixed, your completion costs more in sterling and there is no renegotiating — the euro price is contractual. That asymmetry is the whole argument for a forward: it is not about predicting the market, it is about making your budget hold regardless of it.
Get a quote
Tell us what you're moving and a specialist will come back with a live rate and next steps — usually within one business hour.