Question
I’m from the US and am planning on buying property in Spain this year.
I am planning on taking out a mortgage in spain to do so. I wanted to know, when it is time to transfer the downpayment from my US account, has anyone had issues with their bank because it is such a large sum of money? How have people from the US transferred the money to the Spanish bank account of the owner? Through Wise, a wire tranfer through their bank, or is there another way?
Answers
These are the answers of some Facebook group members:
“I’m not sure you can move such a large sum through Wise. I’m not from the US but the money to buy my home came from outside the eurozone. I had it transferred by wire to my Spanish bank account and subsequently transferred it to the owner. If you’re planning on asking for a mortgage chances are you will need a Spanish bank account.
I didn’t really run into any issues but it is crucial that you or they inform their bank in Spain of the sale otherwise any significant and unusual amounts transferred will be flagged as suspicious and all assets will be frozen.
All parties will probably have to prove the money is legit but the exact documents required will vary from bank to bank. Obviously there will be fees from transferring the money and from currency conversion. Best to call ahead and ask exactly how much, also varies according to the amount transferred and the bank.”
“We used OFX to transfer money to our account in Spain for purchasing our property. They have great rates. We use WISE for smaller amounts.”
“I’ve heard people here use Wise which i personally wouldn’t trust with one large sum. We haven’t done it with Spain but with our home country Colombia, yes. We bank with Chase bank and they usually charge a flat rate of $15. Check with them as well with the bank you’re transferring into in Spain.”
“I wired the money from Chase to my bank here in BBVA, I was expecting difficulties on the Spanish side but it was honestly Chase that gave me the most problems. I had no issues with BBVA. Most of the time they ask for a money order (I forget the spanish word for it) rather than a transfer directly.”
“Our bank here, Sabadell, offered us a free transfer in return for taking their home insurance. Their cover was okay so we accepted, but we changed after a year as it was a bit expensive.”
“We did various six-figure transfers in early 2023 and expected them to be flagged but they weren’t. Wise is best for exchange rates but I held my breath and moved it immediately out to a traditional bank. Fintechs work great but are risky, especially now with liquidity on the radar.”
“Use a realtor or attorney. Do not transfer money directly to the owner. Also know that typically you will need at least 30% down payment.”
In conclusion, there are various ways to transfer a large sum of money from a US account to a Spanish bank account when purchasing a property in Spain. Traditional bank wire transfer and Wise are popular options, but it is crucial to inform the banks and follow the necessary procedures to avoid any issues or freezing of assets.
It is also recommended to seek assistance from a realtor or attorney and to be aware of the down payment requirements. While fintechs offer great exchange rates, they come with some risks, and traditional banks may be a safer option. It is always best to research and compare fees and rates before making a decision.
