Since 1st January 2021 some UK residents have noticed an additional charge when transferring money from a UK bank account into their Spanish bank account.
Prior to the UK leaving the European Union transferring money into a European bank account was a relatively cheap experience. In most cases the only cost of making a transfer was a small fee payable to the exchange company or a lower exchange rate but receiving the money into a Spanish or European account was usually free. That looks to have changed as some Spanish banks are now charging fees for money received from a UK account.
Check if your bank is charging to receive money
UK based Spanish property owners who frequently send money to a Spanish bank account to pay bills are being advised to check if they will be affected.
We’ve heard that as much as 18 euros has been deducted from the recipients bank account per transaction regardless of the amount and the charge could be higher depending on who you bank with.
This potentially makes transferring money to a Spanish ban account a costly experience when done multiple times throughout the year.
Warning to avoid extra fees
We are highlighting this as a warning to anyone sending money into a European bank account as it’s the recipient who will be charged and the account holder may be unaware of the cost of receiving money.
One way to avoid the fees is to send money from a European account. Avoid using an account that uses an IBAN number with a GB prefix.
Anyone using Revolut or Transferwise should be unaffected if the Euros are sent as those type of payment accounts use a local account and IBAN number, but you should check with the card issuer if you are unsure if your card uses a UK account number which will generate the charge.
If you don’t yet use Revolut or Transferwise, use our affiliate links below to get a free account;
If you think you have unfairly been charged for receiving money try contacting your bank. We are hearing of instances where people challenged the charge and have managed to get it waivered.
Sending parcels from the UK are more expensive too
If you are sending a parcel into a European country from the UK or buying an item from the UK from within an European country then you may also have to pay an additional charge similar to the banking charge.
Buyers should be cautious when purchasing small items from the UK that might cost them even more to receive.