Spain Money Transfer Guide
Spain to UK Guide
Contents
Summary
There are no exchange controls in the UK for the pound sterling (GBP), and transferring money to the UK and sending money from the UK is very easy. Moreover, EU rules require free movement of capital throughout the bloc. The current uncertainty surrounding Brexit means that this could be subject to change over the next few years.
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Latest prices for transferring money from Spain to UK
UK money transfer regulations
There are no restrictions on the remittance of profits, dividends, interest, royalties, licensing, management, design, and technical and patent fees, whether by businesses or individuals. Nevertheless, the tax authorities may challenge the level of transfers if they suspect tax avoidance or evasion. Furthermore, banks monitor transactions for suspected money laundering, and the law requires them to have a Money-Laundering Reporting Officer.
They must adequately identify customers when they open accounts and in relation to any transaction exceeding £10,000. If the transaction is by an account holder, this is generally sufficient proof of identity. The reporting rules also apply to estate agents, casinos, insolvency practitioners, tax advisers, accountants, auditors, lawyers, company- and trust-formation agents, and anyone conducting a business dealing in goods (including auctioneers).
The UK is home to a large number of overseas money transfer providers, and you should find little difficulty in selling UK pounds to buy virtually any foreign currency, other than those with purchase restrictions or in territories linked to other activities such as terrorism.
UK financial regulation
The central bank, the Bank of England, is responsible for monetary policy. Regulatory authority and supervision is provided by both the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), the two bodies having replaced the previous regulator, the Financial Services Authority, in 2013.
Overseen by the Bank of England, the PRA focuses on the financial health of deposit-taking and loan-making institutions, individually and collectively. The FCA ensures that the financial markets function efficiently and effectively while ensuring competition and protecting consumers. Money transfer providers in the UK are regulated by the FCA, and must also be registered with HM Revenue & Customs (HMRC).
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Opening a UK bank account
Opening a bank account for non-nationals in the UK is relatively easy. You will be required to provide proof of your employment/income, evidence of an address in the UK, and your passport. The largest high street banks in the UK all offer substantial coverage throughout the country, from which money can be sent overseas or into which overseas money transfers can be received.
Many banks allow holders of sterling accounts to open foreign currency accounts. The most common foreign currency accounts are held in US dollars and euros, but some banks may offer accounts in other major currencies such as Canadian, Australian, New Zealand, Singapore or Hong Kong dollars, or Japanese yen and even Chinese renminbi.
UK visas and work permits
Any national of the European Economic Area (EEA) 27 out of the 28-member European Union (with the exception of Croatia), plus Iceland, Liechtenstein and Norway can move freely to the UK to work, invest or study. For nationals of every other country, the UK operates a five-tier points-based visa system. The current Brexit situation means that there is a lot of uncertainty about how this is going to work going forward. While current EU nationals living in the UK can apply for residency, the system is not very efficient and there are currently no cast-iron plans as to how visas and work permits will work if or when Brexit finally goes through.
Most would-be immigrants will require a Certificate of Sponsorship to obtain a visa, the exception being for “high-value migrants”, entrepreneurs and investors who fall into Tier 1. Tier 2 covers intra-company transfers of highly skilled workers for roles that cannot be filled by an EEA national. Tier 4 visas relate to studying, with applicants required to have a Confirmation of Acceptance for Studies from an accredited UK educational institution. Tier 5 visas cover various categories of temporary workers, including those in the religious, creative or sporting fields, as well as the Youth Mobility Scheme, which enables about 55,000 young people every year to work in the UK on working holidays. (Tier 3 was originally conceived for low-skilled workers, but no visas have been granted in this category).
In most cases, spouses and dependents are allowed to come to the UK with the main applicant. Spouses are usually allowed to work, though this does not apply to spouses of some student visa holders and Tier 5 visa holders. From 2016, only people earning £35,000 or more annually will be able to apply for permanent resident status.
Taxation
While the process of transferring money internationally is straightforward, the UK has a complex tax system, so for instance, if you are transferring money from US to UK there are likely tax implications to understand. Expatriates, whether moving from or to the country, will need professional tax advice.
The UK tax year runs from 6 April to 5 April of the following year, whereas many other countries either run a calendar year or from the mid-point of the year. These differences in dates will impact your tax planning. The UK also has double tax treaties with many countries, but these do not cover every taxable item.
Pensions
If you move overseas from the UK, you will still be able to receive your UK pension abroad, but you will not be eligible for annual increases in benefit. Your pension will therefore stay at the rate it was when you left the UK. There are also many opportunities for UK expats to set up different pension schemes overseas, such as QROPS, which are run outside of the UK. You can then send funds from your overseas pension to where you are residing as an expat.
Currency
The pound sterling (GBP) is made up of 100 pence or pennies (p). The Bank of England issues the majority of sterling banknotes, in values of 5, 10, 20 and 50. Banknotes issued by Scottish and Northern Irish banks, as well as sterling banknotes from the Crown dependencies of Jersey and Guernsey, and the Isle of Man, can be used as a means of payment in the UK, but are sometimes refused due to lack of familiarity. Scottish, Northern Irish and Jersey notes also come in denominations of 1 and 100. Coins come in denominations of 1p, 2p, 5p, 10p, 20p, 50p and £1 (special issue 25p and £5 coins also exist and are legal tender, but are extremely rare).
UK to individual country guides
See our links below to our specific money transfer guides that are for moving from the UK as an expat, as a student or retiring, as well as trading with each of the countries below.
Money Transfer UK to Australia
Money Transfer UK to Brazil
Money Transfer UK to Canada
Money Transfer UK to China
Money Transfer UK to France
Money Transfer UK to Germany
Money Transfer UK to India
Money Transfer UK to Italy
Money Transfer UK to Ireland
Money Transfer UK to Israel
Money Transfer UK to New Zealand
Money Transfer UK to Portugal
Money Transfer UK to South Africa
Money Transfer UK to Spain
Money Transfer UK to Switzerland
Money Transfer UK to Thailand
Money Transfer UK to UAE
Money Transfer UK to USA
Did you know?
Since its founding, the USD has remained the world’s most influential and stable currency, which is why we see countries outside the US adopting it as either a primary or secondary currency.
According to the Department of Commerce, the trade relationship between the US and the UK supports an estimated 665,000 individual jobs.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
All of the money transfer companies and services listed above are fully safe to use. Each of the above are authorised and regulated by the relevant financial authorities in each jurisdiction and are licensed to provide transfer services.
How long does an international money transfer take?
The length of time it takes to fully complete a money transfer will depend entirely on the service used and what currency you want to transfer. Transfers sent using banks — such as bank to bank transfers — will typically be quite quick, often taking between 1–2 working days. For more precise estimates, you should always check the estimated time with the relevant provider. Debit card and credit card payments might also take less time.
How do I use FXcompared?
To use FXCompared to make a money transfer from UK to USA, the first step is to use the above table to compare the rates from the various providers. To find the best provider to transfer GBP to USD, consider factors including price, speed and its overall rating. Once you have made a decision, simply click the green button to get taken through to the provider’s website. From there, you will be able to sign-up and register for an account. Once the verification process is complete, you can initiate the transfer.
What payments methods can I use to send money overseas?
The majority of transfers overseas will be made using a bank to bank transfer, although there are a number of other methods available. This includes cash, debit and credit card, as well as digital wallets. The methods available to you will depend on what provider you chose to make the transfer with.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
Although the prices shown above are generally accurate with market rates in real time, there may be some slight differences when you finalise your order. Exchange rates will fluctuate over the course of the trading day based on real-time market data. As such, when you are looking to transfer money to UK from US, for example, there may sometimes be a delay in how they are reported. Price fluctuations may also be caused by the individual site in question, depending on what services they have available.
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