Purchasing property overseas - Privalgo · 2019-11-08 · a property’s price and viability of sale, especially with a secondary or investment residence. Foreign currency exchange

Buying property abroad

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Purchasing property overseasYour currency transfer options


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ContentsOverview 3

Securing the best rate of exchange 4

Personal tailored service 5

FX products 5

Client stories 6

Main benefits 8


OverviewForeign exchange plays an important role when purchasing property overseas and in a different currency. The rate of exchange secured at the time of purchase can dramatically impact a property’s price and viability of sale, especially with a secondary or investment residence. Foreign currency exchange can have a more significant impact when purchasing off-plan as there can be a long timescale between deposit

and completion, with currency fluctuations potentially impacting on the final price paid by the buyer.

High-street banks no longer enjoy a monopoly on currency transfers –other avenues can in many cases provide significantly better terms for the buyer.

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Securing the best rate of exchangeAn unwelcome combination of unfavourable fluctuations in currency rate, inflated exchange rates and bank fees can potentially cost a buyer thousands of pounds when completing a property purchase.To ensure the best rate of exchange, it is advisable to use a foreign exchange specialist like Privalgo. These providers consistently provide better rates, transparent pricing and no hidden fees.

When transferring large sums of money to complete a property purchase, it is especially important to choose the right FX provider to maximise the value of your currency transfer.

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FX products

Spot ContractsAppropriate for time-sensitive transactions like a deposit or finalising a transaction. By applying smaller margins to the interbank-rate (the dynamic rate banks trade at and visible online or in the media), FX specialists consistently provide better spot rates than banks.

Forward ContractsThese locked-in rates of exchange (up to 12 months in advance with a small deposit) are a popular FX product when purchasing an overseas property.

A forward contract can help mitigate risk against currency fluctuations, effectively locking in the purchase price of a property irrespective of currency movements between initial purchase and settlement.

Personal tailored serviceCurrency transfer specialists also provide a tailored service to assist in the purchase, guiding the client on which products best suit their needs to maximise savings and streamline the transaction.

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Client story

Property saleA client was recommended to Privalgo to complete a GBP to EUR transaction for a €5.2m property purchase in Spain. An initial conversation determined a potential £80k saving over the bank rate. The client opened an account with Privalgo in minutes, agreed on a rate of exchange and sent the GBP for settlement that day.

7th November 2019Date of Sale

€5.2mSale Price

1.13433Bank Exchange rate

€35Bank Transfer fee

£4,584,203Cost in GBP

1.15482Privalgo Exchange rate

€0Privalgo fee

£4,502,866Cost in GBP

Privalgo saving in GBP £81,337


Privalgo Limited is a company registered in England under registration number 11219580. Registered office: 25 Eastcheap 2nd Floor, London EC3M 1DE United Kingdom

Privalgo Limited is authorised by the Financial Conduct Authority as an Electronic Money Institution. Reference number: 900887.


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Client story

Off plan property purchaseAn international client investing in Portuguese property used a bank to make payments and currency conversions from GBP to EUR. In April 2017 he agreed to purchase an apartment in the Algarve for €840k. He converted GBP to EUR and paid the 25 per-cent deposit through his usual channel.

The property purchase was set to be completed in January 2020. With rising uncertainty around Brexit and GBP beginning to fall, he was concerned that the remaining balance would significantly increase upon completion. He read

a forecast that predicted EUR/GBP could be near parity if a no-deal Brexit came to fruition, a scenario that could have compromised the purchase. Struggling to get advice on exchange rates from his bank, he was recommended to a currency expert at Privalgo.

They clarified the factors likely to affect exchange rates over the following nine months and suggested a forward contract option to fix-in at the current rate. The client opted for this process and made a saving of over £30k in the completed transaction.




April 2017Reservation date

£541,935.00Amount due

£573,927.00Amount due

January 2020Estimated completion date

€210,000.0025% deposit

€630,000.00Remaining balance

1.1625Rate of exchange locked May 2019

1.0977Rate of exchange completion

Privalgo saving in GBP £31,991.00


Main benefits of using an FX providerWe encourage clients to conduct their own due diligence on large FX transfers. By appointing a currency specialist, they will maximise savings while ensuring a quick, hassle-free and secure transaction.

Bank-beatingSpecialist foreign exchange providers are often able to offer enhanced rates of exchange compared to a bank.

Transparent pricingAvoid hidden fees and charges, as specialist providers usually waive transfer fees, where banks typically charge an average fee of £35 per transaction.

ProtectionWhen selecting a provider, ensure they are a firm authorised to carry out payment services. For example, Privalgo are authorised by the Financial Conduct Authority (FCA).

Customer serviceDedicated account managers provide support and expert advice.

TimingTransfer at a time that fits in with your requirements and secures rapid transfers. A bank can take up to 3-5 business days, FX specialists usually deliver in 1-2 days and sometimes on the same day.

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9www.privalgo.co.uk [email protected] +44 (0)20 3880 0575



This document provides impartial guidance about the impact of foreign currency exchange when purchasing property overseas. Please note Privalgo are not recommending or encouraging readers of this guide to make financial or other decisions based on the content of this guide.

Privalgo goes to lengths to ensure all content is as error free as possible but we cannot guarantee complete accuracy of content at all times.

The content provided is intended to be informative and of interest only – information offering advise on the purchase of property overseas is meant to be a guideline only; we do not offer advice of a legal nature, we provide content purely with the intention to inform. Privalgo is not aware of an individuals user’s financial or social situation, this guidance does not constitute as advice or a personal recommendation to you the reader. As a result all actions and decisions

arising from information received form this guide are the sole responsibility of the site user and Privalgo will not be liable for any claims or damages. When planning to engage in decisions of a financial nature we advise that you contact an independent financial advisor before making your decision.

Let’s talk currency+44 (0)20 3880 0575

The case studies are partly based on real events but are only provided here to show potential savings that could be made using Privalgo and is not a single real trade.

The bank rates and fees quoted are fictional using an estimated exchange rate approximately 0.5% above the market rate and used merely to show potential savings of not using a bank

service. The actual rates and savings will vary from day to day.

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Purchasing property overseas - Privalgo · 2019-11-08 · a property’s price and viability of sale, especially with a secondary or investment residence. Foreign currency exchange