Credit
cards
Most major
credit cards
are accepted
all over Spain
although some
establishments
may put a
limit on the
amounts you
can withdraw
or spend and
sometimes
there may be a
surcharge.
Most places
now have ATM's
for
withdrawing
cash, at which
most cards
will work.
Most machines
have the
instructions
in several
languages and
even the
smallest of
towns are now
getting the
machines. They
can be a
godsend at
evenings and
weekends and
on holidays
when banks can
often close
for several
days at a
time. Make
sure you keep
a separate
record of your
credit card
numbers. If
you lose your
card, click here.
Purchase tax
The internal
sales tax in
Spain is known
as IVA and
varies between
7% and 33%
depending on
the item
bought. Food,
wine and basic
requirements
are taxed at
7%, most goods
and services
are charged at
16% and luxury
items such as
jewellery and
cigarettes
attract 33%
tax. Hotels
have a special
7% rate.
Transferring
money
worldwide
You can beat
the banks by
using a
specialist FX
company do
make the
transfer for
you. You will
get a higher
rate of
exchange than
the bank and
there will be
no fees. Read
more about it here.
Currency
Factors
Many people
are unaware or
neglect the
importance
that exchange
rates have on
the cost of
their overseas
property and
the currency
risk that is
associated
with an
overseas
purchase.
The majority
of individuals
still use
their bank to
exchange their
currency and
transfer their
funds abroad
even though
they know that
their bank do
not necessary
provide them
with the best
rates, or
facilitate
against
currency risk.
The reason
being they are
afraid or
unsure of the
alternatives.
Recommendations
from friends
and property
agencies can
usually help
to find a
reputable
foreign
exchange
specialist.
There are also
several checks
you can make
to ensure that
you are
getting the
most from your
currency
specialist.
Firstly,
insist on
having a
personally
assigned
dealer
(preferably
the same
dealer that
was
recommended by
your friend or
property
agency). Make
sure the
dealer keeps
you informed
on all issues
affecting your
situation. If
there is a
rate that you
desire, inform
your dealer
and he/she can
contact you or
book that rate
automatically
when it is
achieved. The
dealer’s
ability to access
up-to-the-second
exchange rates
means that
they should be
able to
significantly
undercut banks
and other
financial
institutions
that quote
daily rates,
however, it is
always a good
idea to get
quotes from
your bank to
ensure that
your dealer is
giving you the
best rates.
The currency
market can
fluctuate
dramatically
and the actual
cost of
foreign
currency
depends on the
timing of your
currency
purchase, this
is known as
currency risk.
For example,
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
increase from
£128,205 to
£136,986 over
that time
period, a
difference of
£8,781. 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.
In summary,
use a
recommended
currency
specialist
that is able
to offer a
personal
service and
strategies
that can
alleviate
currency risk.
These simple
guidelines
could save you
not just
money, but
time and
effort. You can book your currency with oneof these companies here
