Brexit risk: Five tips for changing pounds to euros when you move to Spain

Do you plan to move Spain this year? If so, you might be aware that Brexit is having a negative impact on the value of the pound. Here are some tips to limit the damage from Peter Lavelle, a foreign exchange broker at Pure FX.

Brexit risk: Five tips for changing pounds to euros when you move to Spain
Photo: jax10289/Depositphotos

Since early May, the pound to euro interbank exchange rate has fallen from a peak of 1.1757, to 1.1151 at the time of writing. That's a decline of over 6 cents, or 5.15 percent.

The biggest factor contributing to sterling's decline is that financial markets don't know what relationship the UK will have with the European Union (EU) after Brexit. This is more than three years after the UK voted to leave the EU. Also, the pound is being weighed down by the fact that both candidates to become Prime Minister, Boris Johnson and Jeremy Hunt, have said that they'd accept a 'No Deal' Brexit.

So, what can you do to minimise Brexit risk, when you transfer your money to your Spanish bank account to move to Spain? Well, you’ll find five easy tips below.

1. Stay up-to-date with the exchange rate

This helps you to avoid Brexit risk, because when you know what's happening to sterling's value against the euro, you can better plan your money transfer to Spain. By comparison, if you don't watch the exchange rate before you buy your euros, then you're in the dark.

To keep track of sterling's value against the euro, you can check the live interbank exchange rates on the Foreign Currency Direct website. Alternatively, you can search ‘live exchange rates’ on Google to find the latest interbank rates. This will help you to plan your euro purchase, even with Brexit.

2. Check what's affecting the pound versus the euro

The second tip to avoid Brexit risk for when you transfer money to Spain is to keep an eye on what's affecting the pound to euro exchange rate. After all if you know that, for example, Boris Johnson has committed to take the UK out of the EU without a deal, and that this might weaken the pound, this can help you to decide when to transfer your money to the UK.

Also, it's worth noting that Brexit isn't the only factor affecting the exchange rate. There are dozens of factors, including the UK's and Eurozone's economic performance, and the Bank of England's and European Central Bank's interest rate outlook. By staying in-the-know, you'll develop a better idea of what's influencing the exchange rate, to help you decide when to buy your euros.

3. Set up a rate alert, for when your target exchange rate hits

Photo: peshkova/Depositphotos

This way, when your target exchange rate hits, you'll receive an email or a phone call telling you. This way, you can take advantage of any unexpected movements in the exchange rate, to buy your euros at the level you want. This is a helpful tool to ensure you get the euro total you're after, even with Brexit.

4. Consider setting up a forward contract

With a forward contract, you fix your exchange rate at today's level, so that even if the pound fluctuates in future versus the euro, you get the exchange rate that you've locked in. This protects you from adverse movements in the value of sterling and guarantees the euro total that you've receive.

To set up a forward contract, you put down approximately 10 percent of the amount that you intend to transfer. Then you can transfer your money at any time you like in the following 12 months.

5. Seek guidance from your money transfer service

They'll be able to tell you what's affecting the exchange rate, what's happened to the value of the pound versus the euro recently, and offer you their guidance based on their years of experience helping people to transfer money. So you can ensure your money transfer goes well, in spite of Brexit uncertainty.

By Peter Lavelle at foreign exchange broker Pure FX, a trading name of Foreign Currency Direct Plc

Please note that the exchange rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which Pure FX offer. For live trading levels contact one of the Pure FX currency brokers on +44 (0) 1494 671800.

This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information.

READ MORE: Brits remain top foreign buyers in Spain, despite (or because of) Brexit

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Barcelona’s most expensive apartment sells for more than €40 million

The most expensive apartment in Barcelona now has a new owner and has been sold for a whopping +€40 million.

Barcelona's most expensive apartment sells for more than €40 million

According to reports in the Spanish press, a “foreign individual” has bought the penthouse apartment located on the city’s elegant Passeig de Gràcia. 

Passeig de Gràcia is one of Barcelona’s most famous streets, home to Gaudí buildings such as Casa Batlló and La Pedrera. 

READ ALSO: How much does it really cost to live in Barcelona?

The penthouse is a 650m2 duplex in the exclusive Mandarin Oriental Residences Building, a luxury apartment complex in Deutsche Bank’s former Barcelona headquarters.

The penthouse has views of Gaudí’s Sagrada Família too. Source: Mandarin Oriental Residences

The complex, which has 20 floors of 500m2 each, is made up of 34 apartments designed by the architect Carles Ferrater, which range between one and four rooms and with areas of between 120m2 and 580m2.

The penthouse had been on sale for around six months, since June 2022, and the developer had indicated beforehand that it would only consider offers “above €40 million”. 

In 2014 investment fund KKH Property Investors bought the former bank headquarters for €90 million with the intention of opening a luxury hotel, but the moratorium on tourist accommodation licences by Barcelona City Council prevented the project from going ahead.

The residences even have access to an outdoor pool. Source: Mandarin Oriental Residences

KKH chose instead to convert it into an exclusive apartment building with community services including a gym, spa, swimming pool, garden and library, just like a hotel. 

On the lower levels of the building, the average price is around €30,000 per square metre, while on the higher floors, the prices are around €40,000 to €45,000. The duplex located in the attic, which is the largest of them all, has a price of €61,538 per square metre.