Who is the Best Currency Exchange Company for Buying Property in Spain?

Securing the best currency exchange rate, when buying property in Spain, can save you a lot of money!

Buying a home in Spain is a thrilling adventure, but it can also be overwhelming, especially when navigating the complexities of international real estate and currency exchange.

At Move to Malaga, we’ve helped countless clients turn their Spanish property dreams into reality. One of the smartest moves you can make is partnering with the best currency exchange specialist. That’s why we highly recommend Lumon. Their expertise has saved our clients thousands, and it can do the same for you.

The truth is, buying property overseas comes with unique challenges. Legal systems vary, languages can be a barrier, and – perhaps most importantly – exchange rates can fluctuate wildly. Even a small change in the exchange rate can add thousands to the price of your property. It’s a risk you really shouldn’t ignore.

So who do we believe are the best currency exchange company?

That company is Lumon.  Their team of currency specialists will work closely with you to understand your budget, risk tolerance, and goals. They’ll provide personalized guidance on how to navigate the unpredictable world of exchange rates and implement strategies to protect your budget.

Two powerful tools they offer are the Forward Contract and Market Orders:

Forward contract

A forward contract allows you to lock in a current exchange rate for an international payment on a specified date in the future, without needing to have all your funds available. This ability to secure the exchange rate for your property purchase between making an offer and completing, makes it a popular tool to protect against currency movement as demonstrated by this quick example:

Having worked with the Move to Malaga team to find your ideal property, you seek Lumon’s services who assign you a dedicated account manager.

When you transfer your funds to pay the deposit the pound to euro exchange rate is €1.17. This means your €275,000 property will cost around £235,000.

Your account manager informs you that the pound is experiencing heightened volatility. They provide the option of locking in today’s €1.17 exchange rate for the future payment to Spain using a forward contract. As a result, securing the price of your property at £235,000.

Fast-forward three months and you’re ready to complete the purchase, during which time the rate has plummeted by five cents to €1.12. If you hadn’t been proactive and secured a forward rate at €1.17, your property would have cost around £245,500 at the current rate – £10,500 more.

It’s worth noting, however, that if the rate improves in your favour, you won’t be able to take advantage of that movement.

Market orders

If you can be more flexible with your budget, an option available to utilise are market orders.

This allows you to set a target rate above (limit order) or below (stop-loss order) the current market level, which if reached triggers the order instantly. You might implement a limit order if you need to make an international payment. However, you are not restricted by tight deadlines and need a higher rate to ensure the property you are purchasing is within your budget. You might implement a stop-loss order if you are working to a strict budget. This avoids the risk of the market dropping below a level you can’t afford.

Or perhaps you’d like to use these tools in tandem. That way you can plan for best- and worst-case outcomes that fit within your budget, it’s up to you.

Ongoing support: 

Lumon’s support doesn’t end with your property purchase. They can also help you manage ongoing expenses like utility bills, mortgage payments, and transferring income or pensions. Their experts will work with you to fix exchange rates for regular transfers. This ensures you know exactly how much you’ll send and receive each time. Plus, they can set up convenient, fee-free automated payments.

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At Move to Malaga, we’ve seen firsthand how Lumon’s services can benefit our clients. Their competitive exchange rates, personalized approach, and expert guidance make buying property in Spain significantly less stressful and more cost-effective.

Don’t let exchange rate uncertainty hold you back from your Spanish property dream. We strongly recommend reaching out to Lumon to learn how they can help you. With their expertise and Move to Malaga’s local knowledge, you’ll be enjoying your new Spanish home in no time. 

Click the link below to enquire now and take the first step towards saving money on your property purchase.

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