Many people need to send money to support loved ones in Spain or make frequent cross-border business payments. Unfortunately, using high street banks comes with long transfer times and a high cost to transfer money.
This gave rise to the need for faster and cheaper money transfer options. Today, money transfer providers like Wise can make a money transfer to Spain from the UK in three hours without costing you too much.
In this guide, we discuss the top transfer providers based on security, speed, and fees. We also detail money transfer limits in Spain, taxes, and ways to avoid red flags from regulators.
Top Money Transfer Providers to Send Money to Spain
Wise is the best overall for making business and personal online money transfers to Spain from the UK. You can transfer up to £1 million in one go for a fee of £0.21 plus 0.42% in variable charges per transaction. They charge no hidden fees. The best part is your transfers happen at mid-market exchange rates.
Since Spain is a SEPA country, your money could be routed via the SWIFT network. This could lead to additional fees for you and the recipient in Spain. However, Wise makes up for this with its transfer speeds. It claims your recipient in Spain will get the funds within three hours.
Wise offers several ways to fund your international money transfer. You can use your credit or debit card, Google Pay, or even online banking. Meanwhile, your recipients can receive the funds via different payment services.
Wise also makes business accounting easier with its global payments platform. Its API integrations with your favourite billing software make invoicing and payments seamless. Those making business payments to other countries can use Wise's free multi-currency account. With a Wise business account, you can send up to 1,000 payments at once to your business employees in Spain online. They further claim to save you up to 6X compared to leading UK banks.
Wise is regulated by authorities worldwide. It is committed to protecting user data with modern encryption standards. If you want to check the status of your payments, simply track them using their intuitive app.
- Dedicated fraud detection team
- Automate invoicing and monthly payments to business employees
- Stay on top of your money transfers with the real-time payment tracking feature
- Fees could be higher than other money transfer providers
- Refunds for cancelled transactions could take several business days
With Xe, you can send money online up to $500,000 in equivalent currency per transaction to Spain from the UK. They charge no transfer fees for bank or wire transfers but could mark up the sterling-to-euro rate of exchange.
Bank transfers are usually completed within 24 hours. If you want even faster transfers, try paying with credit/debit cards. This payment method could attract third-party fees. Remember, Xe also imposes a ‘send fee’ for some transactions. For higher amounts, you must submit proof of income and state the purpose of the transactions.
Regulated by the FCA and backed by Euronet, Xe is safe for personal and business use. If you are a solo entrepreneur or an enterprise, Xe’s business account can support your journey. Their ERP solutions eliminate manual accounting for payments to employees in Spain.
Xe also helps manage FX exposure with forward contracts and market orders. These features allow you to have some control over forex rates. For instance, imagine you are planning expenses for the next quarter. In this case, forward contracts can lock in today’s market rate for a future transfer up to a year in advance.
- Regulated globally and enterprise-grade encryption
- A team of industry experts to manage your FX risks and exposure
- A variety of market orders could help offset any exchange markup fees
- Additional send fees may apply based on the funding method
- No option for cash pick-up arrangement
If low costs are your top priority, Atlantic Money is the best way to transfer money to Spain online from the United Kingdom. With Atlantic Money, you can transfer up to £1 million to Spain for a flat fee of £3 using the standard delivery option. And it takes two business days to make the funds available to the recipient.
Regulated by the FCA, Atlantic Money claims to be 10 times cheaper than Wise. Check out the comparison on Atlantic Money’s website. Not only that, its express delivery option ensures instant transfers to Spain. That would cost you a fee of 0.1% of the transfer amount on top of the flat £3.
However, you can fund your payment only by using the bank transfer option. Your recipient receives the money via the direct bank deposit delivery method. Sending money to a SEPA country from the UK gives rise to SWIFT network costs. Atlantic Money helps you avoid these extra costs with a flat fee model.
First-time users will notice default transfer limits of £850 per 30-day rolling period and £2,500 per 180-day rolling period on their account. You can get around these limits easily. Simply go through a selfie ID check or furnish documents like payslips or proof of income for higher limits.
- On providing sufficient documentation for large transfers, you can obtain a custom limit
- Any potential markup fees tend to go down with transfer size
- Links with global interbank exchanges
- Bank transfer is only option available for sending money abroad
- Additional fees for weekend transfers
How to Send Money to Spain Using a Money Transfer Provider
The process of transferring money to Spain by using an online money transfer service is simple. You only need to follow these three steps to execute a transaction!
Step 1: Compare Providers to Find the One That Best Fits You
Step 2: Sign Up with the Chosen Provider
Step 3: Transfer Money
Fastest Way to Send Money to Spain
Bank transfers to Spain via Xe are generally completed in 24 hours. They could be processed even faster if you use credit/debit cards. Wise, Atlantic Money, and Western Union can take more than one business day when moving money to Spain.
Faster payments using credit/debit cards on Xe could attract an additional "send fee". This option could work if you need to send money urgently. Xe also lets you track transactions that are processing on their smartphone app.
Cheapest Way to Send Money to Spain
Atlantic Money’s flat, transparent fee structure helps you avoid transfer fees completely. You also avoid the SWIFT fees associated with sending money to SEPA countries from the UK. However, the cheapest option is seldom the fastest. Atlantic Money could take up to two business days to complete transfers.
Wise and Xe can process cross-border payments faster than Atlantic Money but often charge higher fees.
What Are the Best Apps to Send Money to Spain?
Wise and Xe offer feature-rich apps designed for beginners. Available on both iOS and Android stores, these apps display all vital payment data in one place. Set rate alerts, check transaction history, and track payments directly on the apps.
Atlantic Money, as an app-only provider, offers a straightforward money transfer approach. This allows you to set up an account, set your destination as Spain, send money, and track your transfer in a few taps. Meanwhile, your data and payments stay protected with bank-level encryption standards.
Transfer Safety
When sending money abroad, your funds in transit generally pass through intermediary banks. Financial regulators also cross-examine your payments before they can reach the recipient.
The consequences of not selecting the right money transfer provider could go beyond hefty fees. If your money is routed through unauthorised channels, regulators could probe the transaction.
An error in the details is one way to get your transaction cancelled. However, stating incorrect details is a serious offence that you must avoid at all costs. Ensure the recipient’s bank account is KYC-compliant, and personal details are verifiable.
Proper documentation and supplying the right information are key to seamless payments to Spain from the UK.
Things to Consider When Sending Money to Spain
When sending money to Spain, knowing if you or the recipient would face any tax implications is vital. While you can bypass payment limits using money transfer providers, you may hit limits from your bank.
Sending money to your family in a different country is generally tax-free. Sometimes, you must state the payment purpose since frequent transfers could be viewed as an income source. Here are some details to keep in mind for a hassle-free experience.
Local Authorities
When sending money from the UK to Spain, it is wise to know the regulators that oversee such transfers.
The Banco de España is Spain's central bank that monitors the Spanish banking system. It also supervises other financial intermediaries operating in the country. The Spanish interbank payment system manages all retail and personal payments. Meanwhile, the Spanish Tax Administration Agency oversees tax collection in the EU nation.
Sending money from the UK comes under the purview of two authorities: The Financial Conduct Authority (FCA) and the HM Revenue & Customs (HMRC). They track payments and probe suspicious money transfers to prevent money laundering activities.
How Much You Are Sending Abroad
There is no hard limit to the amount of money you can send from the UK to Spain. In general, large international payments could face delays due to some extra checks. Avoid hold-ups by supplying income source details and the transaction purpose beforehand.
If you pay transfer fees for sending money to Spain, they often increase with the payment size. Furthermore, the maximum transaction size also depends on destination, local rules, and serviceability. Payments could be rejected for lacking documentation or using non-compliant money transfer services.
The Cost of Money Transfers
Fees for international money transfers come in various forms. They also vary based on your money service provider, exchange rates, and mode of payment. Fees on one-time payments might not affect you much, but it becomes a problem for regular payments.
Money transfer providers like Xe Currency don't charge you transfer fees. However, they could mark up the exchange rates. Luckily, you can control them, too, with forward contracts and money orders on its app.
If you are paying via credit card, your card issuer could charge you an additional amount. This is called third-party fees. These charges could also arise from intermediary banks if funds are routed via the SWIFT network. Faster payment options also attract fees, which could be higher for far-away destinations. Rest assured, you will know exactly how much you will pay in fees using the money transfer providers in this guide.
Payment Type and the Reason for the Transfer
You can send money to Spain from the UK as business or personal payments. If you send money as salaries to workers you have employed in Spain, that's business payments.
Meanwhile, gifting money to a family member in Spain from the UK is a simple example of a personal payment. It also covers sending money to them regularly to support their livelihood.
Wise and Xe Currency are viable options for sending large business payments beyond borders. Add-ons like multi-currency accounts, ERP tools, and billing software integration promote business growth. Business account creation often requires some extra paperwork and approval time.
Tax Regulations in Spain
If you are a tax resident in Spain but working in the UK, your earnings are not taxable in the EU nation up to a limit of €60,100.
Meanwhile, residents in Spain have to pay taxes on worldwide income. Tax rates in Spain for general taxable income range between 19%-47%, depending on income.
If you are sending money to Spanish residents as gifts, they have to report it to the tax authorities. Money received as gifts or inheritance is taxable at rates between 7.65%-34%.
In the UK, the HMRC allows you to send up to £3,000 to Spain without paying gift taxes.
What Do You Need to Send Money to Spain?
To send money to Spain from the UK, you will need basic details of the recipient. You also need to check if your local bank has any restrictions on international payments.
You must have the following details and documents ready before making the payments:
Recipient name, address, and bank account details
Transfer amount and currency
Business address if you are making business payments
24-digit IBAN number
SWIFT/BIC code of the recipient’s bank
Bank name and branch address
Declaration forms for large transfers
Valid government ID and/or a selfie ID check
What Do You Need to Receive Money in Spain?
Your recipient in Spain must also have correct banking and business details before they can receive money from the UK. Here's a list of the requirements:
Valid bank account
Current residential or business address
Valid government ID and proof of address
Transaction reference number if the mode of delivery is cash pickup
