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BrexitOn the 23rd June 2016 the United Kingdom voted to leave the European Union (52%/48%) at the end of a historic referendum. The referendum results caused the GBP to instantly plumet to its lowest level for thirty years. Since then it has regained some ground but at the time of writing this Brexit still has not fully happened, we are still in the transitional period and politicians are debating deal or no deal.
Whatever is decided in 2020 Brexit will have a big impact on the British economy and the British pound.
If you regularly transfer money from Britain you will have noticed the volatility of the GBP and that today it does not buy as much as it used to. The pound may have recovered from the referendum fall but over the past few years overall the value of the GBP has fallen steadily. In June 2016 the GBP to EUR was 1.3 and in June 2020 it is 1.1.
For those transfering EUR or USD into GBP it's good news but for those transfering GBP into USD or EUR it's not. A "No Deal" conclusion will, no doubt, push the GBP down further. A "No Deal" conclusion will mean banks and financial services based in the UK will be unable to serve clients in the EU.
With the GBP fluctuating so much and generally falling; getting the best currency deal possible is more important than ever. That's why employing the services of a professional transfer company is vital. Transfer companies offer better exchange rates than banks because their markup is less and the fees charged by transfer companies are 80-100% lower than most banks.
If you know you have a transfer to do in the months ahead and you suspect the GBP will fall then a Forward Contract could protect you from such future uncertainties.
On the other hand if you need to transfer EUR or USD into GBP then the falling pound is in your favour. CurrencyFair, OFX and TorFX offer a Limit Order that only triggers a transfer when a certain transfer rate is reached.
Published in Funds AbroadRecurring Payments
There are many reasons why you may have regular payments to make overseas :
- mortgage payments
- loans
- bills
- services
- family support
- salary repatriation
- pensions
- general living expenses
Often these payments go through a bank. Banks charge a premium for sending money overseas, while dedicated international money transfer companies offer a quicker service for less.
OFX and TorFX offer their clients recurring transfers. They are regulated as a bank, so your money is safe. Once set up with your account manager you have nothing to worry about. The payment is made automatically at the specified dates using the best rates available.
Published in Funds AbroadPensions Abroad
If you are retired and living overseas you may be reliant on your pension being transferred each month into your overseas account. The currency markets directly effect your income, for good or for bad. A good international money transfer company will help you make the most of your monthly transfer and give you more money in your pocket. At the same time the transfer will be easier and quicker.
OFX and TorFX offer recurring transfers. Once set up the transfer is automatic every month. Meanwhile you profit every month from lower fees (80-90% less than a bank transfer) and lower exchange rates. The monthly savings you make soon adds up!
Published in Funds AbroadBuying a property in Spain is fairly straight forward. Once you have found the property you desire the first step is to propose an offer; either to the estate agent or direct with the owner if you are viewing the property privately. In Spain the estate agent is paid for and therefore works for the seller. Around 3% of the sale price is taken by the estate agent as commision. The internet has given property owners the opportunity like never before to sell their house privately and save themselves some money.
If your offer is accepted the next step is to arrange any checks you want to be done (construction surveys, planning consent, soil tests..). Surveys are vital if you are buying a rural property (terreno no urbanizable). It is important to check that any rural buildings have been built legally before you buy. Also rural renovations might not be allowed, regulations vary between regions of Spain. It is important you check with the authorities about any renovation plans before commiting yourself to buying. Never take for granted what you are told by the seller or the estate agent. If you discover after buying a property that an owner or agent misled you, it's too late.
If the surveys are good then it is time to sign a contrato privado de compraventa, the preliminary contract. At this point you will be expected to provide a 10% deposit. Alternatively you can pay the deposit and sign a preliminary contract before the survey, with a clause in the contract stipulating that the final sale is subject to the results of the survey. Similarly if you need a mortgage to buy the property it is important to add a clause to this primary contract indicating that the final sale is subject to the mortgage.
The sale is completed with the contract of sale escritura de compraventa. This is signed in front of a notary. Here you will have to pay the remaining balance on the property and any taxes that are due. You can grant a solicitor power of attorney if you are not in Spain.
You will have little problem finding an English speaking estate agent in Spain. However, be careful. Spanish estate agents are paid for and therefore working for the seller. They want you to buy the property and unscrupulous agents may "forget" to disclose problems. Regulations regarding estate agency in Spain is lax. Never give an estate agent any money. Never use the esate agents recommendations for notary, solicitor, surveyor. If the estate agent is blurring the truth the risk is that the "professionals" he recommends do the same. It is strongly recommended to find your own professional help.
In Spain debts (outstanding property tax impuesto sobre bienes inmuebles or mortgages) connected to a property must be covered by the sales contract or they become the responsibility of the new owner.
You can find a list of English speaking solicitors here. Make sure that your future lawyer is registered with the local bar association (Colegio de Abogados).
Using a notary is advised even if it is not always required. If you need a mortgage the bank will insist you use a notary. The buyer is responsible for sales costs and taxes related to the property purchase which will amount to about 8-12% of the purchase price:
- Property Transfer Tax 5-10% (old properties)
- VAT 10% (only new properties)
- notary fees (title deed tax and land registration 1-2.5%
- Legal fees 1-2%
The seller will be liable to a capital gains tax of 20-27%. Sometimes, for this reason, a buyer may suggest not declaring the full amount of the transaction, with a cash payment passing undeclared and hence tax free. The problem with this is that when the buyer comes to sell he/she is faced with a bigger capital gains problem because the true value of the property was not declared officially.Spanish banks often value a property less than the market value and this can be a problem if you require a mortgage. Lenders will only complete a mortgage agreement when you own the property.Published in Funds Abroad
Buying a House in FranceWhether buying a French house as a second home, holiday home or to start a new life, buying a French property is really straight forward.
The most important person involved in a property sale in France is the notaire. A notaire sorts out the legal side of the sale, as a solicitor would do in the UK. Notaires are obliged to be impartial (they are regulated by the French government) so it is very common for the same office to deal with both the buyer and the seller. This should be quicker. Otherwise the buyer can employ their own notaire to work alongside the sellers. The process is thorough and fair. The notaire handles the funds for the sale and at the same time acts as a tax man: transferring land and house taxes to the new owner; searching for and reimbursing any debts (loans or mortgages) tied to a property; calculating and collecting any income tax due by the seller. The cost of the notaires services (notaires fees), including a land registry fee and various sales taxes, are all paid by the buyer. These fees vary between 2% and 8% of the property’s value, depending on the property’s age and value. Important to budget for these charges if you are buying a house in France.
Notaires also sell houses direct. Their offices resemble an estate agent with property adverts in the windows. If you view a property through a notaire and decide to buy you will be eligible for a “negotiation fee” similar to an estate agents commission.
Estate Agency fees in France are paid for by the buyer. You may notice the letters “FAI” next to the price. This stands for “Frais Agence Inclus” Agency Fees Included. So the price displayed includes agency fees. Estate agency fees in France vary between 2% and 12%. The term was abused to conceal how much exactly the buyer was paying in agency fees. Therefore since 2017 it was made illegal to just display one price with FAI without equally showing how much the estate agent is charging. Today all estate agencies have to declare clearly what their charges are and who they are. Now the price is displayed as "net vendeur" (owners price) or "prix hors honoraires" (price excluding fees) followed by the percentage being charged by the agency. Some examples:
76,320€ FAI
just declaring the final price, illegal since 2017
Honoraires à charge acquéreur : 6%
Prix hors honoraires : 72,000 €
SARL Blogs
Buyers fees: 6%
Price excluding fees : 72,000€
Who agent is and they are registered
76,320€. 72,000€ + Honoraires de négo. : 4,320€ (soit 6% à la charge de l'acquéreur)
SARL Blogs
76,320€ (Total price). 72,000€ + negotiation fees : 4,320€ (6% to be paid by the buyer)
Who the agent is and they are registered
76,320€
Le prix indiqué comprend les honoraires à la charge de l'acheteur : 6% TTC du prix du bien hors honoraires.
SARL Blogs
76,320€ (Total price)
The price shown includes the buyer's fee : 6% inc VAT in fees added to the asking price
Who the agent is and they are registered
All property advertised for sale in France has to display how much the agency fees are and who the agent is. If you see property for sale professionally and not displaying this information then leave it alone.Don't forget you still have to pay the notaires fee on top of the final price.
You must be a company registered in France to sell a property professionally in France. Companies registered in other countries claiming to sell property in France are blurring the truth. Some estate agents employ "negotiators" who can show a property but are not qualified to sign any paperwork. They usually work for commission, so the fees are often higher. If you meet an estate agent or negotiator always ask to see a "Carte Professionnelle"; they are required to carry them by law.
Over 80% of property sold in France each year is sold privately. Here you will find just one price displayed. Sometimes it is followed by "net vendeur" (net seller or sellers asking price). Another term to look out for is "particulier" or "particulier à particulier" (personnal or private sale). A private sale cuts out the estate agent and his/her fees. With the growth of the internet it has become easier for owners to advertise for themselves and private sales have grown strongly in France.
If you agree a price direct with an owner the next step is the notaire.
Most notaires in France have someone who can speak English to help with the sales contract and sales procedure. If you find one that does not you are completely within your rights to change notaire.
Remember most properties will be listed with several different agents at different fees and maybe also privately. Use the internet. Estate agents may ask you to sign a paper before showing a house; this insures them exclusivity if are interested in the property and you can not deal with anyone else afterwards.
The DPE (Diagnostic de Performance Energétique) energy report has been a legal requirement since 2011 for houses being sold or rented. Property for sale with no heating or insulation (renovations) are exempt from the report. The DPE is very important in France. Since 2014 all newly built houses have to have A classes and there are lots of grants available to improve the ratings of existing older properties.The energy rating is required to put a house on the market. After a sale has been agreed there are other surveys that the seller must produce (electrical, lead and termite). The notaire makes sure these are completed and will send you a copy. A structural survey is not a legal requirement.
If you find your new dream home you will need to sign a "compramis de vente" or a "promesse de vente" (sales agreement) either through an estate agent or a notaire.to proceed with the sale. A deposit (5-10%) will also be required. This should be paid to the notaire. At this point you usually have the right to withdraw for ten days. After the ten days have passed you are committed. Completion usually takes 2-3 months.
This delay gives you a good opportunity to wait for the best deal on the currency market. Transfer companies offer more options than the banks. Which option is best for you depends on the circumstances: currency and the markets. The goal is to get you the best deal possible and save money!
FundsAbroad recommendations for purchasing property overseas:
The CurrencyFair Wallet is perfect to be in a position to transfer a deposit quickly. Otherwise CurrencyFair offers rate alerts and a limit order contract to wait for the best moment to make a money transfer. Support with CurrencyFair is all on-line.
OFX offers forward contracts and limit orders to maximise your transfer. You will have an account manager to advise and 24/7 telephone or email support.
TorFX offers forward contracts, limit orders and a stop loss order to maximise your transfer. You will have an account manager to advise with telephone or email support (limited to working hours).NB: High street banks in France are CLOSED EVERY MONDAY, open saturday mornings.
FundsAbroad.com wishes to thank Paulyne Small for writing this article Paulyne has lived and worked in France for over thirty years. For most of this time she has worked as a translator for notaires.
We hope this is helpful. Please feel free to comment or email us.
Published in Funds AbroadTagged under- buying a house in france
- french house
- second home
- holiday home
- french property
- property sale in france
- notaire
- regulated
- loans
- mortgages
- income tax
- notaires fees
- land registry fee
- sales taxes
- sell houses direct
- estate agent
- property adverts
- negotiation fee
- estate agents commission
- estate agency fees
- agency fees
- FAI
- frais agence inclus
- net vendeur
- prix hors honoraires
- excluding fees
- property advertised for sale in france
- carte professionnelle
- property sold in france
- sellers asking price
- particulier
- private sale
- sales contract
- Diagnostic de Performance Energétique
- DPE
- energy report
- energy rating
- compramis de vente
- promesse de vente
- sales agreement
- currency market
- transfer companies
- currency
- market
- save money
- CurrencyFair
- OFX
- TorFX
- Rate Alert
- Limit Order
- Forward Contract
- Stop Loss Order
Rapid Transfers
Single transfer
, or “Spot Deals” allow you to lock-in our great rate, send us your funds and let us do the rest. Whether you’re sending or receiving funds, we make it simple, swift and secure.
- Locked-in OFX rates
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Published in Funds AbroadTransfering money overseas to purchase property
Using a good money transfer company for an overseas property transaction is essential.
Whether you are buying, selling or investing the right transfer will save you a lot of money, time and hassle. Don't leave it to the last moment. We recommend you register with a transfer company early and start a dialogue with your account manager who will advise on the options available, depending on the state of the currency markets.
If you are buying and find your dream house the chances are you will need to transfer money quickly to secure the deposit. Maximum 2 days with a transfer company whereas a high street bank will take longer and cost you a lot more (remember until this deposit is paid you risk loosing the property).
Otherwise you will proabaly have more time to transfer your money and this is where the transfer professionals excel:
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Very competitive exchange rates
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Options to wait for the rate to move in your favour
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Low or no fees
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Fixed rate transfers
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Fast transfers
Transfer companies offer more options than the banks. Which option is best for you depends on the circumstances: currency and the markets. The goal is to get you the best deal possible and save money!
FundsAbroad recommendations for purchasing property overseas:
The CurrencyFair Wallet is perfect to be in a position to transfer a deposit quickly. Otherwise CurrencyFair offers rate alerts and a limit order contract to wait for the best moment to make a money transfer. Support with CurrencyFair is all on-line.OFX offers forward contracts and limit orders to maximise your transfer. You will have an account manager to advise and 24/7 telephone or email support.TorFX offers forward contracts, limit orders and a stop loss order to maximise your transfer. You will have an account manager to advise with telephone or email support (limited to working hours).Published in Funds AbroadTagged under- transfering money overseas
- purchase property
- money transfer company
- overseas property transaction
- buying
- selling
- investing
- account manager
- currency markets
- transfer money
- high street bank
- property
- transfer your money
- transfer professionals
- competitive exchange rates
- fixed rate transfer
- fast transfers
- transfer companies
- currency
- market
- save money
- CurrencyFair
- CurrencyFair Wallet
- Rate Alert
- Limit Order
- money transfer
- Forward Contract
- OFX
- TorFX
Three expat friends met up one afternoon in a local cafe. During the course of the coffee, conversatin turned to transfering money. They all relied on this service albeit for different reasons: one was an estate agent, marketing specifically at overseas clients; one was involved in imports and exports; and one was retired, relying on the bank to transfer his pension across every month.It quickly became apparent that each of them experienced different levels of service. The retired friend had never looked beyond his bank with whom he had been a loyal customer most of his life and trusted them. Believing all companies offered about the same service he was shocked to realise that he was paying much more than his friends and waiting longer for the monthly transfer to be completed.
The remaing two friends both used specialist transfer companies and profited from this service because they are cheaper and quicker than banks. The estate agent had been recommending a company to his clients for years. He had never really looked at alternatives and was surprised to discover that the transfer company being used by his friend was offering special services for property purchases. At the same time the third friend realised that the company used by the estate agent completed the transfer much quicker than the company he used. They decided to do some research themselves into transfer companies and found it difficult and time consumming to wade through the options and companies. "FundsAbroad.com" was concieved.
FundsAbroad is unique because it has been produced by expats and money transfer clients. The aim is to help people like ourselves. The FundsAbroad website sets out clearly and simply what is on offer for transfering funds between countries. We are independent and we are not judgemental as we felt this is too often just subjective, i.e. which is better, telephone support or on-line help? Often what defines the best company will come down to individual preferences.Instead of ranking companies ourselves we are offered customers the chance to leave feedback about their experiences. We hope this will be beneficial to others.
Enjoy the website. We hope it saves you some money and time!!
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If you have any questions or comments please feel free to contact us.
FundsAbroad.com
Published in Funds AbroadMore...
International Money Transfers
The Funds Abroad guarantee
We only recommend partners that we believe deliver the best service; to the extent we are happy to put our own reputation behind them.Read our reviews.
What we expect from a good transfer company:
High Quality Service
- quick and easy sign up process,
- readily available staff – courteous and helpful,
Outstanding Reputation- established companies experienced in foreign currency transfers
- good client feedback
Value
- no hidden fees
- best transfer rates
International
- offices in different countries
- knowledge of regulations in different countries
Experience of money transfers
Easy to sign up
Help and support
You and your moeny are protected by regulatory bodies in the relevant areas.
No surprise money transfer fees.
Knowledgeable and experienced staff. No pushy salespersons.
Communication options : telephone, email, online (computer), mobile app
Published in Funds AbroadWe present clearly and precisely the pros and cons of the TOP international money transfer companies; helping you find the best deal available.
There are lots of money transfer companies and it is difcult to know who to trust your money with. At FundsAbroad we have studied lots of these transfer companies.and present on this site our top five. Below are the criterias we looked for in each company :
TrustThe company credentials
FundsAbroad.com only recommends companies that are established, with a solid track record and regulated. You can rest assured that your money is in safe hands during the transfer.
EfficiencyHow long does it take?
All the money transfer companies featured in the FundsAbroad.com website provide the quickest international transfers available. They are all much quicker than any high street banks.
Value
How much does it cost?
The money transfer companies FundsAbroad.com recommends are the most competitive in the market. They are all much more effiecient and cheaper than banks, saving you time and money.
Currencies AvailableWhat countries does the company serve?
Find out quickly which countries or currencies are covered by the financial transfer companies featured on FundsAbroad.com.
Signing UpHow to proceed and how do you get your funds to the transfer company
So you've found your perfect transfer company. What's needed to set up an account? How can you get your money to the transfer company and how is the money paid out?
Published in Funds Abroad
