Buying property abroad: banks, Wise, Revolut or currency brokers – which is the cheapest?

When buying property abroad, the purchase price is not the only cost involved. Currency conversion, transfer fees, and exchange rate risk between the preliminary agreement and the final completion can amount to several thousand euros. Here is how the main options compare for private individuals.

What really drives the cost of a property transfer

• The exchange rate margin: the difference between the market rate and the rate applied to you. This is by far the largest cost, and it does not appear on your statement.

• Transfer fees: fixed and visible, but often negligible on a large amount.

• Intermediary bank fees: deducted along the way on a SWIFT transfer, they can cause the amount received by the notary to fall short of expectations.

• Exchange rate risk: between signing the preliminary contract and final payment, the currency can fluctuate by several percent.

• Limits and processing times: a transfer that is blocked or capped on the eve of signing also carries a cost.

Traditional banks: simple, but the most expensive

It is the natural reflex: your bank already knows your file and manages your mortgage. However, on currency conversion, the margin charged by a traditional bank typically sits between 3% and 4% of the amount. On €300,000, this represents €9,000 to €12,000 that appears nowhere as explicit fees.

Another limitation: a large international transfer remains an uncommon transaction at branch level. It is often subject to compliance checks that can take several days, which must be planned well ahead of the completion date.

Payment apps: ideal for small amounts

Neobanks and transfer apps, such as Wise or Revolut, have transformed the landscape for small amounts: rates close to the market, upfront fees, and an easy-to-use app. For sending a few thousand euros, they are often unbeatable.

For a property purchase, other challenges arise:

• Transfer or conversion limits, which vary depending on the plan and user profile.

• Percentage-based fees which, even when low, add up significantly on very large amounts.

• Compliance checks on unusual sums, handled via in-app chat without a dedicated contact.

• The lack of hedging tools to lock in an exchange rate several months in advance.

International payment specialists: built for large amounts

A currency specialist provides access to exchange rates much closer to market conditions than those offered by a bank, on large amounts, alongside a dedicated specialist who prepares the transaction with you. Crucially, it allows you to manage exchange rate risk throughout the duration of a purchase.

Example: €300,000 converted into UAE Dirhams

Thomas is buying an off-plan flat in Dubai. He needs to pay the equivalent of €300,000 in several instalments over 18 months.

• With his bank: a 3% to 4% margin, representing €9,000 to €12,000 across all payments, plus transfer fees on each instalment.

• With an app: significantly lower conversion costs, but limits must be checked, with no option to lock in the rate for future instalments, and compliance checks to manage alone for each call for funds.

• With a specialist: reduced conversion costs and the option to lock in today the exchange rate for future instalments. If the euro drops by 5% during construction, Thomas's budget remains unchanged.

Locking in your exchange rate between the contract and completion

Between signing the initial agreement and final payment, two to three months often elapse, and sometimes up to two years for an off-plan purchase. During this time, a 5% swing in the currency alters the true cost of the property. A forward contract allows you to fix today the rate for a future payment. To find out more, read our guide to currency forward contracts.

Our approach to your property project

OSolto supports private individuals investing abroad. A dedicated expert, with over 10 years of experience in international payments, analyses your payment schedule, prepares supporting documentation with you, and executes the transfer at the right time. You gain access to over 140 currencies and hedging solutions to safeguard your budget.

OSolto is registered with ORIAS under no. 26004337 and partners with authorised payment institutions. Your funds are held in segregated accounts.

Key takeaways

For a few thousand euros, an app is sufficient. For a property purchase, the cost of conversion and exchange rate risk matter far more than the advertised fees. Are you planning an overseas purchase? Get a free analysis of your transfer before signing.

Frequently asked questions

What is the cheapest way to transfer money for an overseas property purchase?

It all depends on the amount and the timeline. For a large sum paid in one or several instalments, an international payment specialist is generally more cost-effective than a bank, thanks to tighter exchange margins and the ability to lock in a rate.

Can you lock in the exchange rate before completion?

Yes, using a forward contract. It fixes today the rate for a payment that will take place later, protecting your budget against a depreciation of the euro.

Do you need to declare an overseas account opened for a property purchase?

Yes. Any foreign account held by a French tax resident must be declared annually using form 3916, submitted alongside the income tax return.

Can the transfer be blocked?

A large transfer may be subject to source of funds checks. Prepare the sales contract, the preliminary agreement, and your bank statements in advance to avoid any delays.