Properties Around Italy
- Select Language
Currency Exchange
When it comes to transferring money to an Italian bank, you are at the mercy of the currency exchange markets, and usually your own bank, in terms of how much this costs you.
We can advise you on the best method of transferring money, where to seek out the best rates, and where you can get commission free transfers, with hassle free transfer direct to the Italian account.
How to save money on Currency Exchange
Many people are unaware of the importance that exchange rates have on the cost of their overseas property, and the currency risk that is associated with an overseas purchase. Here are our top 5 facts and recommendations that will save you money:
1. Use a recommended currency specialist. Banks rarely give competitive currency exchange rates (see the table below for comparison rates between different banks and our recommended specialist).
The dealer's ability to access up-to-the-second exchange rates and contact you at the most opportune time means that they should be able to significantly undercut banks and other financial institutions that quote daily rates.
2. Avoid bank charges. Some banks charge commission, and almost always charge between £25-45 for international transfer of your funds abroad. With a specialist these charges are reduced or completely removed.
3. Tell them what you want. The job of the currency specialist is to get you the best exchange rate within your timeframe. If there is a rate that you need to achieve, inform your specialist, and they can then book it automatically, or contact you at your convenience.
4. Remove currency risk. The ability to fix the exchange rate when the market is favourable for some time in the future removes currency risk. This can be done using a forward contract, but there are other mechanisms that may suit your particular circumstances which your specialist can recommend.
During Jan 03 and Mar 03 the Sterling to Euro exchange rate dropped from 1.56 to 1.46. In real terms, a property priced at €200,000 would have increased from £128,205 to £136,986 over that time period. This is a difference of £8,781.
5. Avoid received costs. Some overseas banks may charge you to receive your foreign exchange transfer. Consider transferring your funds into your Notary/Solicitor/Agent account. You may also negotiate with your bank to reduce or remove these charges.
We can advise you on the best method of transferring money, where to seek out the best rates, and where you can get commission free transfers, with hassle free transfer direct to the Italian account.
How to save money on Currency Exchange
Many people are unaware of the importance that exchange rates have on the cost of their overseas property, and the currency risk that is associated with an overseas purchase. Here are our top 5 facts and recommendations that will save you money:
1. Use a recommended currency specialist. Banks rarely give competitive currency exchange rates (see the table below for comparison rates between different banks and our recommended specialist).
The dealer's ability to access up-to-the-second exchange rates and contact you at the most opportune time means that they should be able to significantly undercut banks and other financial institutions that quote daily rates.
2. Avoid bank charges. Some banks charge commission, and almost always charge between £25-45 for international transfer of your funds abroad. With a specialist these charges are reduced or completely removed.
3. Tell them what you want. The job of the currency specialist is to get you the best exchange rate within your timeframe. If there is a rate that you need to achieve, inform your specialist, and they can then book it automatically, or contact you at your convenience.
4. Remove currency risk. The ability to fix the exchange rate when the market is favourable for some time in the future removes currency risk. This can be done using a forward contract, but there are other mechanisms that may suit your particular circumstances which your specialist can recommend.
During Jan 03 and Mar 03 the Sterling to Euro exchange rate dropped from 1.56 to 1.46. In real terms, a property priced at €200,000 would have increased from £128,205 to £136,986 over that time period. This is a difference of £8,781.
5. Avoid received costs. Some overseas banks may charge you to receive your foreign exchange transfer. Consider transferring your funds into your Notary/Solicitor/Agent account. You may also negotiate with your bank to reduce or remove these charges.