Money Transfers to Spain
Transferring Money to Spain: What You Need to Know Since Brexit
If you are transferring money to Spain from the UK, it is worth understanding a few regulatory changes that followed Brexit. UK financial service firms lost their financial services passports on 1st January 2021. Before then, these passports let firms operate freely across the EU and EEA. Since then, any currency transfer provider working with customers in Spain must hold a valid EU licence.
The Spanish Royal Decree
On 29th December 2020, Spain published Royal Decree-Law 38/2020. It set out how UK firms could continue to operate with customers in Spain after Brexit. Under this decree, UK-authorised firms are treated as third-country entities. They must obtain a new authorisation to operate in Spain. The Bank of Spain (Banco de España) acts as the supervisory authority for foreign exchange providers. It can impose penalties on any company that fails to comply.
Understanding Equivalence
You may come across the term “equivalence” when researching this topic. Equivalence is granted by the European Commission when a country’s laws are considered similar in intent to EU laws. It can be withdrawn at just 30 days’ notice. Crucially, international currency transfers are not covered by equivalence. This means any provider you use must still hold a valid EU licence.
Choosing a Provider for Transferring Money to Spain
When transferring money to Spain, check that your currency provider is regulated by a relevant EU authority, such as the Bank of Spain. A provider authorised only by the UK’s Financial Conduct Authority (FCA) cannot service Spanish-resident customers on that licence alone. As a Spanish resident, you would not be covered by the FCA if your provider is not EU-regulated.
If you are ever unsure whether your provider is properly licensed, simply ask for their EU licence number. A reputable, EU-regulated provider will answer this promptly. When comparing options for transferring money to Spain, it is also worth checking online reviews, industry awards and how long a company has been established. This helps you find a provider whose service suits your needs.
Our team at SolMar Properties is always happy to point buyers towards trusted, EU-regulated currency specialists. This is part of the wider property buying process. Whether you are searching for new build properties or a resale home on the Costa Blanca South, contact SolMar Properties today with any questions about transferring money to Spain.
