How to avoid foreign exchange pitfalls.

August 7, 2010 – 10:08 am

Avoid fees when exchanging money in Tenerife, Spain or the Canary Islands

Avoid fees when exchanging money in Tenerife, Spain or the Canary Islands

Families going abroad this summer are being warned that they could lose hundreds of pounds exchanging their money at the airport bureau de change.

 

Currency prices can be up to 9% more expensive at Gatwick, Heathrow and Stansted compared with other foreign exchange outlets, a survey has revealed. This means a family changing £1000 for a European holiday are £104 worse off buying euros at the last minute, rather than ordering in advance from a specialist firm which can find the best available rate. The company surveyed exchange rates for euros and dollars at bureaux de change at Gatwick, Heathrow and Stansted airports and also checked high street deals on offer at the Post Office and Marks & Spencer.

Over 14 million Britons went on holiday abroad between July and September 2009. If half of these travellers exchanged just £500 spending money at an airport bureau de change before going on holiday to Europe, they could be saying goodbye to £493 million pounds.

Specialist providers apart, the best exchange rate for buying euros was at The Post Office Phil McHugh, senior foreign exchange dealer said: “Our survey highlights the big difference in currency exchange rates offered between the high street, airport bureaux de change and specialist providers.

“People often plan their foreign holidays well in advance, shop around for the best deals and book early to save money, yet they seem to leave their common sense at the airport drop off when it comes to changing holiday cash.

 ”Travellers should take a few minutes to check exchange rates online or over the phone in advance of their holiday and arrange with a foreign exchange specialist for their money to be delivered to their home or work, saving themselves time, hassle and cash in the process.”

Tips for those coming to Tenerife regarding currency exchange include,  think ahead about your currency needs and avoid changing your money at bureaux de change, particularly at airports. Shop around for the best rate - don’t just automatically go to your bank or post office. Specialist providers can offer much better deals. Beware of hidden charges and high commission rates. A good headline rate does not necessarly mean the best value for money.  Avoid poor exchange rates by taking travellers cheques or currency cards with you instead of using credit or debit cards for large purchases. Travellers cheques or currency cards can also help avoid the hefty fees banks and credit card companies charge for using ATMs overseas.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , | Comments (0)

Clock ticking on Expats tax refunds

May 21, 2010 – 4:35 pm

 

Owners in Tenerife need to hurry to reclaim tax

Owners in Tenerife need to hurry to reclaim tax

Expats who paid out too much tax on their Spanish property sale may be entitled to a rebate amounting to thousands of euros.

The potential capital gains windfall for British expats who sold property in Spain before 2007 comes after the scrapping of a discriminatory Spanish tax law.

The  pound   is now  weak against the euro, and the clock ticking on  refunds, all claims must be filed by 21st November this year. With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible. When yearly interest is taken into consideration on property sold as long ago as 1997,  considerable sums of money can be returned and saved.

It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.

Capital gains tax paid by British expats who sold Spanish property before 31st December 2006 was charged at a ‘non-residents’ rate of 35 per cent, compared to just 15 per cent for Spanish residents.

The Spanish government changed the law in 2007, after the EU declared it discriminatory, but an estimated ten thousand British expats had already overpaid. Now they are entitled to a refund.

The claims deadline for those who sold property between 1st Jan 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation. 

Dimas Cuesta from Lexland, a law firm that has already secured rebates for British expats, added: “The legal process requires expert advice, which is fundamentally important to the chances of a successful claim. British expats looking to be reimbursed should act now, before the claims deadline.” Expats who think they have paid too much tax on their Spanish property sale should  see how much they may be owed as soon as possible.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , | Comments (0)

A good result for sterling in the property market.

February 21, 2010 – 12:08 pm

The value of overseas properties owned by Brits actually rose by more than £2.6bn, according to research. In many countries, the devaluation of sterling against the local currency was greater than the drop in property prices.

Sterling exchange rate means a profit for British property sellers in Tenerife and Spain

Sterling exchange rate means a profit for British property sellers in Tenerife and Spain

Property prices fell across much of the world last year, but looking at property in France, Spain, Portugal, Italy and the US. In France, for example, where prices declined by an average of 6.63 per cent in 2009, the Euro gained 13.22 per cent against the pound, giving an estimated 98,000 British owners an average gain – in sterling terms – of £10,373 per property. In Spain the fall in prices was even greater, but British owners are still looking at a profit in sterling terms. .

 There has been a lot of volatility in the currency markets recently and many expect this to continue. This is having a huge impact on the value of property owned by British people abroad and in many cases it is more influential than price changes in the local property markets.The research also highlights the need to get your timing right with overseas property purchases, and to consider forward foreign exchange contracts, as opposed to relying on spot prices

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , | Comments (0)

Value of Britons overseas homes booming

January 23, 2010 – 2:15 pm

Value of property in Spain, Tenerife and the Canary Islands increasing due to currency fluctuations

Value of property in Spain, Tenerife and the Canary Islands increasing due to currency fluctuations

Analysis  reveals that despite property prices falling in France, Spain, Portugal and the USA, and only a small rise in Italy, the collective Sterling value of property there owned by British citizens increased by over £2.6 billion between July 2008 and December 2009. This is because the value of the Euro and the US Dollar against Sterling increased by 13.22% and 16% respectively.

In Spain, where Close Treasury estimates 144,500 properties are owned by British citizens, property prices fell by around 8.35% between 2008 and 2009, but again because of the rise in value of the Euro against Sterling, they would have made a collective gain of £1.1 billion, or £7,668 per property.

There has been a lot of volatility in the currency markets recently and many expect this to continue.  This is having a huge impact on the value of property owned by British people abroad and in many cases it is more influential than price changes in the local property markets. With the currency markets being so volatile,some clients are taking out forward contracts as opposed to paying spot prices.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , | Comments (0)

Choosing the moment to sell in Tenerife might increase your profit

October 20, 2009 – 3:46 pm

choosing the right moment to sell your Tenerife property might increase your profits

Choosing the right moment to sell your Tenerife property might increase your profits

While the fall in the value of sterling against the euro could spell calamity for many UK investors in European property,  Currency Exchangers such as Moneycorp has reported that some Britons are actually choosing the moment to sell up and make a profit.

Investors who sell now can take advantage of the weaker pound. Many British owners of Spanish and Tenerife property can  make a profit selling into today’s market because exchange rates can offset any loss in the value of their property.

For example, the  cost of a property in Tenerife was say £140,000 and with exchange rates having fallen from £1.26 to €1 in September 2008, to £1.10 today, Britons selling a Tenerife property at below its 2008 purchase price still stand to make a profit as they gain 16% when converting euros back to sterling.

There has been a significant annual increase in the number of British clients selling property abroad and transferring their receipts back to the UK.  There is little point in overseas property owners hanging on for an optimum sale price, only to be faced with a poor rate of exchange when converting their euros into sterling.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , | Comments (1)

Pensioners suffering from the global recession

September 29, 2009 – 4:27 pm

Pensioners in Tenerife and overseas are not smiling as much since the recession.

Pensioners in Tenerife and overseas are not smiling as much since the recession.

Almost half of Britons abroad who are sending money back to the UK are aged 65 and over - suggesting that those pensioners who retired to the sun have been hit hardest by the recession and are being forced back to the UK.

Currency specialists such as Moneycorp and  HiFX has seen a 180% increase in the number of euro to sterling transactions and a 111% increase in the number of US dollar to sterling transactions in the past six months, compared to the same period last year.

Not only are more over 65s repatriating money, but they are also sending home larger amounts. This suggests that they are selling up property and returning home. In the last six months almost a third (32%) of the transactions over £70,000 have been made by over 65s. They have  calculated that British pensioners living in Europe have potentially lost out on almost €10billion of their income in the last two years due to the falling strength of sterling. When faced with this drop in their income, it’s no surprise that some pensioners are finding themselves forced to sell up.

Certainly this has been seen in Tenerife and the Canary Islands allowing the fortunate few with cash to obtain great property bargains.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , , , | Comments (1)

Exchange Rate news including Spain, The Canary Isles and UK

April 1, 2009 – 1:02 pm
Exchange rate news in Tenerife and the K
Last week began well for the Pound, with some slightly above expectation inflation data, giving it a boost across the board….
This allowed Sterling to claw back some of the previous week’s losses. However, these gains were short lived, and started to slide away by mid-week, leaving most currency pairs in a fairly similar position at the end of the week, to how they had started it…
This week, anyone needing to send money abroad or transfer money to the UK should be aware of the following data releases which are likely to have an effect on exchange rates during the week.
Tuesday - European Unemployment + Inflation
We have German Unemployment figures and the European CPI Inflation release, at 9.00am and 10.00am respectively.  German data can always have a dramatic effect on the Euro, as they are the largest economy in Europe and CPI is the main inflation figure, and as we saw last week in the UK, can move the markets as well. Watch for good Euro buying opportunities if these releases are below expectations.
Wednesday - UK Industry + Housing
There are some UK industrial figures out at 9.30am and Halifax announce at 10.00am their monthly house price figures, which are seen as a key indication of the UK housing market’s position. With so many of our recent woes being linked to sliding house prices, many analysts will hope for Sterling strength if the price slide is shown to have slowed. 
Thursday - US Jobless Claims
US initial jobless claims are announced at 1.30pm. This begins a very busy end of the week for the US employment sector, and is otherwise the only release on a very quiet day for the markets.
Friday - US Non-farms Employment + FED Speech
Some more UK and European industrial figures start the day at 9.00am, but the main focus is the US, with average earnings and new jobs data at 1.30pm. The Non-farms jobs data is released once a month and is one of the biggest movers of the US Dollar, as it is a clear indication of the US economy’s position. This is followed by the chairman of the Federal Reserve giving a monetary policy speech at 4.00pm. If these two major releases are even slightly negative then we could see the Dollar weaken.
Don’t forget that using your bank to send money abroad is usually not the cheapest way to do it - using a currency company can save you up to four per cent on the exchange rate, and with your own dedicated broker to help you through the process, some of the headache will be removed too.
 

 

 

 

 

 

By Angela | Posted in Economy, General, Miscellaneous Articles, Tenerife | Tagged , , , , , , , , , , , , , | Comments (0)

British workers looking to relocate from the UK to Spain

March 13, 2009 – 12:52 pm

With the UK economy deep in recession, unemployment rising and sterling at an historic low, nearly half of all British workers - 45 per cent - are considering relocating from the UK to work abroad, according to fresh research conducted by foreign exchange specialists

With the press rife with reports of rising unemployment levels, Britain could see a mass exodus of its workforce, as more than half of those polled (51 per cent) will consider making the move if they get made redundant. 

Many of those considering relocating are often from highly skilled careers, raising fears of a skills gap.

Amongst the most likely to leave are graduates or trainees (75 per cent), those working in marketing, advertising and PR (64 per cent), electronics (53 per cent), engineering and manufacturing (51 per cent) and banking, finance and insurance (48 per cent).

The research also reveals the emigration hotspots as Australia (42 per cent), the US (34 per cent), New Zealand (33 per cent), Canada (29 per cent) and Spain (24 per cent).

Whilst it may be exciting, emigrating can also be fraught with difficulties. Not only can red tape, language difficulties and settling into a new job and routine put a strain on things, but you have to deal with the costs associated with moving yourself or your family, outgoings back home and moving money across borders. 

If not handled, properly, commission, bank charges and changes to exchange rates could end up costing you enormously.

Why they would move

1) For a better quality of life (60 per cent)
2) Better job prospects abroad (33 per cent)
3) Because of poor economic conditions (31 per cent)
4) Rising unemployment (29 per cent)
5) The lure of lower taxes, or tax free opportunities abroad (27 per cent)

Tips when relocating abroad

Good budgeting in advance could make the world of difference.  You can work out what is going to cost you whilst you find your feet, what you will need for your new home, and what you will need to send home.

Use the expertise and knowledge of a foreign exchange specialist - they know the markets better than anyone and can provide significant advice and guidance through the relocation process.

Do your research - reputable foreign exchange specialists can offer more competitive rates than banks for moving money around.

Beware of the fact that legal red tape can slow the processes down for bigger purchases such as an overseas property.

Avoid excess charges by ensuring any regular overseas payments arrive on time every time, some specialists enable customers to set up 12 monthly payments in advance

By Angela | Posted in Economy, General, Miscellaneous Articles, Tenerife, Uncategorized | Tagged , , , , , , , , , , , , , , , , | Comments (1)

Buying Overseas? Ensure you obtain the best rate for your money.

March 7, 2009 – 12:32 pm

Make the most of your money when changing currencies

Make the most of your money when changing currencies

As the financial turmoil around the world continues, it is more important than ever to make sure you get the best exchange rate when buying overseas. There are two ways to achieve this: timing your purchase; and getting the best deal on the day.

Timing your purchase

If you are buying overseas, you will usually have a window of a couple of months before a completion payment is due - or a longer period to consider if you are buying off-plan and sending stage payments over the course of a build.

Whatever currency you need, the exchange rate will fluctuate over this period of time - so how do you know what the sterling cost is going to be? When is the best time to buy your currency?

An experienced currency dealer like Moneycorp will be able to tell you what’s happening in the market in simple English. If you need to send money to Tenerife, for example, which way is the Euro heading and why?

For these money transfers in Euros, when is the next announcement regarding European interest rates and how might it affect the exchange rate?

While there is no crystal ball and nobody can see into the future, it can pay to have an idea of what is moving the markets. This is how your currency broker can help you to make an educated decision as to when the time is right for you.

Furthermore, if exchange rates are good (or you’re worried about them getting any worse), you can also lock into a “Forward Contract” to guarantee your rate for up to two years in advance.

The beauty of buying currency in this way is that you have a definite sterling equivalent for a future currency requirement, but you only need about 10 per cent of your Pounds available to secure the rate. The balance is due when the money needs to be sent.

Currency companies watch rates all the time, so if you have a target budget in mind, they can let you know if the market moves in your favour. All in all, you are likely to end up more in control of your finances and with a better deal than just by buying your currency at the last minute when it is required.

Getting the best deal

When you decide to make a currency purchase, it’s not usually your high street bank that will get you the best rate. An independent broker such as Moneycorp will save you up to four per cent compared to a bank’s exchange rate - or £6,000 on a £150,000 purchase!

Currency brokers are registered with HMRC as money service businesses, and as they don’t use credit or speculate on the markets, the system is incredibly safe.

Because currency companies deal only in foreign exchange, you should also expect a first class personal service and your own dedicated dealer to guide you through the process. It is also less confusing to speak to an experienced broker, rather than the call centre environments presented these days by the banks.

Good currency brokers won’t charge you any commission and should have minimal or zero transfer charges - so you can save money right across the board. You can find more information on this and property related matters on the Tenerife Property Guide site.

By Angela | Posted in Economy, General, Miscellaneous Articles, Property, Tenerife | Tagged , , , , , , , , , , , , , | Comments (0)

New Publication to assist Tenerife residents?

February 22, 2009 – 12:21 pm

A new book clearly explaining the rights of Tenerife residents could be just the ticket for recession-hit expats…

Tenerife Lifeline - a must read for anyone wishing to live in Tenerife

Tenerife Lifeline - a must read for anyone wishing to live in Tenerife

Expatriate British and Irish residents in Tenerife may be more likely to feel the recession pinch than other residents on the island.  Retired and working residents are particularly vulnerable to a combination of factors brought about by this recession and according to Tenerife Lifeline, a lack of information has made dealing with these problems even worse.

A weak pound has substantially reduced any income that may have come from the UK, which has directly affected many retired residents claiming a pension as thousand are lost in currency transfers to Tenerife.  If you require a currency transfer, you should consider a money broker rather than a bank as the charges are less.

An increasing number of remote workers who have settled in Tenerife, earning money from the UK and Ireland, have been equally affected.

The effects of recession may be hitting expats in Tenerife hard, but it is made worse because many British and Irish residents are unaware of how the Spanish system works and how to benefit from it.

An increasing number of residents have discovered Tenerife Lifeline, a book written in English that answers all these questions.  The book clearly explains expat rights in all aspects of life, from employment, health to mortgages, credit and tax, and is relevant whether you own a business, work for one or you are retired.

The book is very practical, showing you how to go about getting what you are entitled to.  Available from shops all around the island, including the Trading Post in Las Galletas, this invaluable guide is helping more and more of Tenerife’s expats through the recession.

By Angela | Posted in Economy, General, Miscellaneous Articles, Property, Tenerife | Tagged , , , , , , , , , , , , , | Comments (0)