Buying Property Abroad | Currency Guide for UK Buyers

Buying property abroad?
Take the currency risk
off the table.

Lock in today’s exchange rate for completion up to twelve months ahead. Save thousands compared with a high street bank. Every transaction handled by a dedicated specialist over the phone — from £25,000 to £5m and above.

Get Your Free Quote

FCA partners FRN 927951 / 900199
Forward contracts up to 24 months
Save up to 4% vs banks
In short

Buying property abroad means converting large sums of sterling into a foreign currency — often weeks before completion, with the price fixed at contract.A specialist currency broker helps lock in the exchange rate, protect the budget and reduce the cost of the transfer compared with a high street bank. Cambridge Currencies handles overseas property transfers from £25,000 to £5m and above, with every transaction managed by a dedicated specialist over the phone.

3–4%
Typical bank margin
<0.5%
Specialist broker margin
24 mo
Forward contract horizon
£25k+
Transfer size handled

Why does currency matter when buying property abroad?

In overseas property purchases, the price is set in the local currency: euros for Spain, France, Portugal, Italy and Greece; US dollars for Florida or Texas; AED for Dubai; AUD for Australia. The pound you pay isn’t fixed.

Between exchange of contracts and completion — typically six to twelve weeks for a European purchase, longer for a new-build or off-plan property — the GBP/EUR or GBP/USD rate can move several per cent.

A 4% move on a €500,000 purchase is around £17,000 — the difference between coming in on budget and finding the property has effectively become £17,000 more expensive at the moment you complete. Sterling has moved more than 10% in a six-month window in each of the last five years, according to Bank of England exchange rate data.

The currency cost of buying property abroad has two components: the market move between contract and completion (uncontrollable unless the rate is locked in advance), and the margin charged on the conversion — the spread between the rate the bank or broker buys the currency at and the rate they sell it at to you. Both can be managed. Both are significant on a six- or seven-figure purchase.

The UK government’s overseas property guidance sets out the wider legal and tax framework; this page focuses on the FX side, where a specialist broker provides the most measurable saving.

Coastal villa with ocean view and flowers — typical of Mediterranean property purchases handled by Cambridge Currencies

What’s the cheapest way to send money abroad for a property purchase?

A 3% bank margin on a €500,000 transfer is around £12,500. The same transfer through a specialist broker, with a 0.4% margin, is around £1,700 — a difference of more than £10,000 before any market movement is taken into account.

ProviderTypical marginForward contractsDedicated specialistBest for
High street bank 3–4% Limited No Convenience only — costly on property-sized transfers
Money transfer app 0.5–1% No No Smaller, time-flexible transfers
Specialist currency broker Under 0.5% ✓ Up to 24 months ✓ Yes Property purchases, business payments, recurring transfers
Cost of converting £400,000 to euros
Illustrative comparison at a 3% bank margin vs 0.4% broker margin
£16k £12k £8k £4k £0 £12,000 High street bank 3% margin £1,600 Specialist broker 0.4% margin SAVING £10,400

Which currency tools work best for property buyers?

01

Spot transfer

Buy currency at today’s rate, with funds settled in one to two working days. Suitable when the rate is favourable, the funds are ready, and completion is imminent.

03

Limit order

Set a target rate that executes automatically when the market reaches it. Useful when the rate today is acceptable but not ideal, and the buyer is willing to wait.

Most property buyers don’t lose money on their FX because they made a bad call. They lose money because they didn’t make a call at all — they leave it to the day of completion and accept whatever rate the bank offers.
— Anthony Bull, CEO, Cambridge Currencies
From the Property Desk

A recent client purchase: €750,000 villa, Mallorca

In May, a UK client buying a €750,000 villa near Pollença locked their rate at 1.176 with a 90-day forward contract — paying a 7% sterling deposit on signing.

By completion in August, the GBP/EUR mid-market had drifted to around 1.139. Settling at the locked rate, the client paid approximately £637,755. The equivalent purchase via a high street bank at the prevailing rate, with a 3% margin, would have cost around £20,400 more.

Anonymised; figures rounded. Reflective of typical outcomes when a forward contract is taken out at exchange of contracts in a falling-sterling environment.

Buying a €450,000 villa in Spain

Contract day mid-market rate: 1.18. Completion in 90 days. Two practical choices — and the cost difference between them.

Option A — Wait, then use a high street bank

£409,538

  • Mid-market at completion (sterling -4%)1.1328
  • Bank margin of 3%, effective rate1.0988
  • Cost in sterling£409,538
Option B — Forward contract with a broker

£382,881

  • Locked rate today, less 0.4% margin1.1753
  • Market exposure post-contract£0
  • Cost in sterling£382,881
Saving by choosing Option B
~ £26,657

Figures are illustrative; actual rates depend on market conditions, transfer size, and contract terms.

The £26,657 saving has two parts: the margin saving (around £12,000 on this size), and the protection against the market move (around £14,500). On a property purchase, both matter — and both compound at higher transfer sizes.

What mistakes should I avoid when buying property abroad?

Leaving currency to the day of completion

The most expensive form of FX is “I’ll deal with it when the time comes.”

Using the high street bank

Convenient, but the margin alone often exceeds £10,000 on a typical European property purchase.

Forgetting the costs around the property

Notary fees, local taxes, agent commission, surveys — each is paid in local currency and is FX exposure. HMRC guidance on foreign income may also apply if the property generates rental income.

Misreading the rate

The rate quoted in news outlets is the interbank mid-market rate. The customer rate is always lower; the question is by how much.

Not factoring in funding speed

A forward contract requires deposit funds in cleared form. A spot transfer requires the full sterling amount. Cleared funds typically take 1–3 working days.

Overlooking the foreign account question

Spain often requires a local account; France can; Portugal usually does. We can transfer directly to the lawyer or notary in most markets.

Which countries do we serve for overseas property transfers?

Cambridge Currencies handles overseas property transfers across all major markets. The most active corridors are listed here. Markets not listed are typically available on request.

SpainGBP/EUR · Costa, Balearics
FranceGBP/EUR · Provence, Paris, Alps
PortugalGBP/EUR · Algarve, Lisbon
ItalyGBP/EUR · Tuscany, Lake Garda
GreeceGBP/EUR · Cyclades, mainland
Cyprus & MaltaGBP/EUR
USAGBP/USD · Florida, NY, CA
UAE (Dubai)GBP/AED · Off-plan & resale
AustraliaGBP/AUD · Often emigration-led
SwitzerlandGBP/CHF

Will Stead, who works with property buyers across Cambridge Currencies’ European corridors, notes that timing varies significantly by market: a Spanish purchase typically completes 8–12 weeks after contract; a French notarial purchase can take 3–4 months; a Dubai off-plan can run for 2–3 years. The right contract length depends on the market, not on a generic “average.”

Aerial view of a Mediterranean coastal town in Cinque Terre, Italy — representative of overseas property markets served by Cambridge Currencies
Cinque Terre, Italy One of dozens of European corridors handled across our property desk

How do I set up a currency broker for a property purchase?

From quote to funds at destination — typically two to four working days. Our how it works page covers the full client journey.

1

Request a quote

Call us with the property amount, destination country and expected completion date. We quote the rate, margin and any fee — no obligation to proceed.

2

Open an account

Cambridge Currencies operates with FCA-authorised partners (Currencycloud and ScioPay). Compliance can be verified on the FCA Register. The account check is paperwork-light and typically completes within 24–48 hours.

3

Decide between spot and forward

A spot transfer settles in 1–2 working days at today’s rate. A forward contract locks today’s rate for up to 24 months. Your specialist talks through the trade-off based on completion timing and your risk tolerance.

4

Agree the contract and pay

For a forward contract, pay a deposit (typically 5–10% of the contract value). For a spot transfer, send the full sterling amount. Funds are usually settled by Faster Payment from a UK current account.

5

Send funds to the destination

Once the contract is in place, we send the funds directly to the destination — lawyer, notary, vendor or escrow account — as instructed.

6

Receive confirmation

Confirmation is provided once the funds have cleared at the destination, normally within 1–2 working days for major currencies.

Why use a specialist currency broker for a property purchase?

Size

The transfers are large. A 3% saving on margin is meaningful in absolute terms — typically £10,000–£50,000.

Time

The exchange rate window is open for weeks or months. A forward contract closes that window.

Process

Property purchases involve lawyers, notaries, agents and often a holding currency account. A dedicated specialist co-ordinates the FX with the legal process.

Cambridge Currencies allocates a dedicated specialist to each property purchase. The reason: a property purchase involves judgement calls — when to lock, what duration, what to do if completion slips. Those calls are easier on the phone, with a specialist who knows the file.

For market context, see our latest currency forecasts for sterling, the euro and the dollar, or our weekly currency forecast for shorter-term commentary. Live rates for any pair are available via our currency converter.

Frequently asked questions

What’s the cheapest way to send money abroad for a property purchase?
A specialist currency broker is typically the lowest-cost option for property-sized transfers. Margins are usually under 0.5%, compared with 3–4% at a high street bank. On a £400,000 transfer, that difference is around £10,000–£14,000 in margin alone, before any market movement is considered.
Can I lock in an exchange rate before completion?
Yes. A forward contract lets you lock in today’s rate for a transfer up to 24 months in the future. The most common use case is locking the rate at exchange of contracts, with the funds settled at completion. A deposit of 5–10% is normally required.
How much can I save versus my bank on an overseas property purchase?
On a typical European property purchase of £300,000–£500,000, the saving versus a high street bank is usually £8,000–£20,000 on margin alone. Forward contract protection can add further potential saving against an adverse market move.
Do I need to open a foreign bank account to buy property abroad?
Sometimes, but not always. Spain often requires it. France can require it for the notary process. Portugal usually requires one. In most markets, Cambridge Currencies can transfer directly to the lawyer, notary or vendor without a foreign account, provided their banking instructions support it.
What happens to my forward contract if the property purchase falls through?
A forward contract is a binding agreement to exchange currency on a future date, regardless of the underlying property purchase. If the purchase falls through, the contract still settles. Options include extending the value date, closing out at the prevailing market rate, or using the funds for another purpose.
Is Cambridge Currencies regulated?
Cambridge Currencies Ltd operates client transactions through FCA-authorised partners — sciopay Ltd (FRN 927951) and The Currency Cloud Limited (FRN 900199). Both partners safeguard client funds in line with FCA rules. See our safeguarding funds page for more detail.
How long does an international property transfer take?
A standard transfer in a major currency such as EUR, USD or AUD takes one to two working days from the point Cambridge Currencies sends the funds. Same-day transfers are possible in some currencies and corridors.
What’s the minimum transfer size for an overseas property purchase?
Cambridge Currencies handles transfers from £25,000 upwards, with no upper limit. The specialist desk regularly handles individual transfers of £1m+ for larger property purchases and HNW clients.

Speak to a property currency specialist

Whether the purchase is a Spanish villa, a French farmhouse, a Florida condominium or a Dubai apartment, our specialist desk will quote, structure and execute the transfer. Every transaction is handled by a dedicated specialist allocated for the duration of your purchase.

Direct lines
01223 608 232 01223 398 087
Mon–Fri · 08:30–17:30 GMT
By email
info@cambridgecurrencies.com