Importance of Currency and Exchange rates when buying property in Spain
Exchange rates
Last updated on Thu, 13 Mar 2025
When buying a property in Spain, it is best to take out a mortgage in Euros. This ensures that both your mortgage and property are in the same currency, reducing exchange rate risks
Is your income from outside the Eurozone?
Following a change in Spanish mortgage legislation in 2019, the currency in which you earn your income has become a crucial factor in determining the mortgage options available to you from Spanish banks.
Why does it matter if my income is not in Euros?
The mortgage law introduced a new right for international clients: if your main income is in a currency other than Euros, you have the right to convert your Spanish mortgage into the currency of your income at any point in the future.
As a result of this regulation, each bank in Spain has a list of supported and approved currencies. This means that not all banks will be able to offer you a mortgage if your earnings are in a currency other than Euros.
We work with a wide range of banks and can quickly assess whether securing a mortgage will be possible for you.
What if my income currency is not supported by Spanish banks?
Some banks may still be able to offer a mortgage, regardless of your income currency, if you purchase the property through a Spanish company.
However, due to the costs involved in establishing a Spanish company, this option is generally only viable for purchases above a certain amount—typically €300,000 to €400,000.
Exchange rates: What to consider
Buying a house or flat is one of the largest financial transactions you will make. Given the amounts involved, even small fluctuations in the exchange rate can have a significant impact.
When transferring large sums of money for a deposit, property purchase, or mortgage payments, using a currency exchange company rather than a standard bank transfer can offer better rates and lower fees.
As specialists in assisting international clients, we have extensive experience with currency exchange companies and can provide guidance tailored to your needs.
Select a currency
Exchange rates for Pound Sterling since 1999
To get 1 €, you will need
Now
0,84 GBP
Thu, 13 Mar 2025
Maximum
0,98 GBP
Mon, 29 Dec 2008
Minimum
0,57 GBP
Wed, 3 May 2000
Exchange rates for the last 5 years
End of day Exchange rates from European Central Bank
Is todays rate high or low?
If we look at all the end of day exchange rates from 1999 until today, we see that most of the time (more than 2/3) the exchange rate was between 0.68 - 0.88 Pound Sterling for 1 €
Why choose a euro mortgage?
Reasons to take out a Euro mortgage in Spain
When taking out a mortgage on a property in Spain, it is generally best to do so in Euros—the same currency as the property's purchase price.
By financing your property in Euros, you ensure that if you later decide to sell, the proceeds from the sale will be in the same currency as your mortgage. This minimises the risk of exchange rate fluctuations reducing the amount available to repay the mortgage in full.
Will this still be true in the future?
One thing we can be certain of is that exchange rates constantly change. The rate between the Euro and your income currency today will not be the same tomorrow.
As a result, if you earn in a currency other than Euros, the amount you pay on your mortgage each month (when converted into your income currency) will fluctuate.
However, these variations are usually manageable, and more importantly, your mortgage and property value will remain aligned in the same currency—helping you avoid the risk of exchange rate losses when selling the property in the future.
Example
In 2011, Jane and Jim purchased a beautiful house in Spain. Instead of taking out a mortgage in Spain, they decided to re-mortgage their home in the UK to finance the purchase.
The house cost €100,000, and at the time, the exchange rate was £0.90 per €1 (or €1.11 per £1). To cover the cost, they borrowed £90,000 against their UK property
In the summer of 2015, just four years later, circumstances changed, and they decided to sell the house in Spain.
However, by this time, the exchange rate had shifted significantly to £0.70 per €1 (or €1.42 per £1). This meant that when they sold the property for €100,000 and converted the proceeds back to pounds, they only received £70,000 instead of the £90,000 they originally borrowed.
As a result, they were left with a £20,000 shortfall, highlighting the risks of financing an overseas property in a different currency.
How much Savings do you need to buy your new place in Spain?
Find out the savings required, explore mortgage options, and estimate your monthly payments. Get a clear breakdown of taxes, fees, and the best mortgage deals available
Exchange rates - things to remember
Buying a house or flat is one of the most significant financial transactions you will make. Given the high cost of property, even minor fluctuations in exchange rates can lead to substantial differences in the final amount you pay.
Securing the Best Exchange Rate
Depending on where you live and the terms offered by your bank, using a currency exchange company may be more advantageous. In some cases, the difference in exchange rates can be considerable, while in others, it may be minimal.
Comparing options can help you maximise savings and avoid unnecessary costs.
How can we help?
We are a mortgage broker specialising in international clients.
Over the years, we have gained extensive insight into the currency exchange services available. We can provide expert advice on the most competitive exchange options tailored to your currency and country.