Since the UK left the EU at the end of 2020, many British buyers have been hit with new bank charges when sending payments to the EU, and in particular, Spain.
The UK remains a member of the Single European Payments Area (SEPA). According to the SEPA scheme, cross-border payments within the zone should not attract any additional charges, compared to domestic transfers within each member country.
However, some banks have interpreted the rules differently, and are now charging to receive payments sent from the UK – sometimes up to 0.5% of the total, which can be a nasty shock for property buyers sending large amounts.
Different banks are charging different customers based on different circumstances, so it’s very hard to know in advance if a particular transfer will be subject to unfair fees on arrival.
A Place in the Sun Currency can route payments via Germany
While there is no way to guarantee that charges won’t be applied, A Place in the Sun Currency now has the facility to route payments through a client account in Germany, meaning the final ‘leg’ of a payment is from a German IBAN, rather than a UK one.
In many cases, this will significantly reduce charges on receipt, or eliminate them altogether.
This service is free of charge on request for A Place in the Sun Currency customers. Please contact us for more information or to request this service for any particular payments, and make sure to contact your recipient bank to ask them about receiving charges, before we make your transfer.
For more details, please see the guidance we published earlier in the year by clicking here.