The number of Spaniards moving to different countries has been growing year on year for the past decade. Today, over 2.5 million of them live in Europe, Asia, Africa, America, and Oceania. From 2009 to date, the number of Spaniards abroad has grown by a hooping 70%. Majority of them live in the America and about 35% are in Europe.
The growth in this diaspora population has also seen a corresponding rise in the number of transactions and amounts sent to Spain from the diaspora. In 2017, the Pew Research Centre records that $10,692 million was sent to Spain from different countries around the world. The top 5 busiest remittance corridors are France, Germany, United States, Argentina, and the United Kingdom. Jointly, these corridors account for slightly over 60% of the total remittances.
When sending money to Spain, it helps to know the different transfer methods available, the information you need to send the money, how the recipient will access the money, and the different factors to consider before you send. This guide will explore each of these areas in great detail to help you make an informed decision in your next transfer.
|Debit Card||2 Days|
|Bank Transfer||2 Days|
|Bank Transfer||3-5 Days|
|Debit Card||3-5 Days|
There are multiple ways to easily send and receive money in Spain but these will largely depend on the provider you decide to use. Below you will find everything you need to know about sending and receiving money.
There are different ways you can send money from the diaspora to Spain. For instance, you can do interbank transfers from the host country to Spain, use online money transfers to bank accounts or pick up locations in Spain or use in-store deposits at agent locations in the host country.
You can transfer money from your bank account in the host country to the recipient's account in Spain. If you are sending the money from a country in the European Union, the transfer will be faster and could be delivered the following day. Better still, if the transfers are from accounts in the same bank or banking group, transfers tend to be much faster with lower transaction fees.
However, if you are sending from outside the Eurozone such as the United States, Asia, or Africa, the time your transfer takes will be much longer up to 4 business days. The specific charges including exchange rates are determined solely by the banks involved in the transaction including correspondent banks.
Money transfer operators (MTOs) such as Transferwise, OFX, WorldRemit, Xoom, and WorldFirst can help you send money from different parts of the world. The advantage with these methods is that they charge low fees, give you the best exchange rates, and support large amounts in both standard and exotic currencies.
To send money through MTOs, you will need to sign up for an account on their platform, verify your account details, fund your transfer through a debit card, credit card, bank debit, or any other method available. Then, choose the payout method which can be a bank transfer or cash collection.
There two main payout options when sending money through online money transfers: bank transfers and cash pickup.
Bank Transfers – If the recipient has a bank account, you can transfer money directly into their bank account. Depending on how you fund your transfer and the country you are sending from, this can be delivered the same day or the following day. Other providers take 3 to 5 days to complete the transfer.
Cash Pickup – Not all MTOs offer the cash pickup option, but Xoom, Transfast, Western Union, and MoneyGram offer you this option. The recipient collects the money in cash in minutes.
Money transfer service providers such as Western Union and MoneyGram offer you the option of depositing cash in person at a store and then send to your family. You can also begin the process online and complete the payment and sending in-store.
Providers such as Xoom allow you to top up mobile phones in Spain in an instant. The service supports up to 10 carriers in Spain including Hits Mobile, Lebara Mobile, Digi Mobile, Blau, Wamaya, Euskaltel among others. Simply enter the phone, pick the amount to top up, and give your loved ones the gift of talk.
Some of the providers such as MoneyGram, Western Union, and all online money transfer services have apps that make it easier to send money on the go. These apps also allow you to track transfers, pay for transfers, and recall erroneous transfers.
For you to send money through online money transfer operators or from a store, you will need the following information:
Most of the Spaniards who left the country and ventured abroad at different points in history were mainly driven by economic reasons. The Spanish economy has been shaky and this has forced many people to seek greener pastures elsewhere. This emigration history informs the reasons for the remittances back home.
Spaniards in the diaspora have obligations back home to support their families who may include their children and siblings. Because of the fewer economic opportunities, those in diaspora are obligated to send money home to supplement family income and cater for basic needs.
Medicare costs are always on the rise and quality care is expensive. Accessing private care not just in Spain but many other parts of the world is costly. Part of the remittances may be directed towards this expense.
Spaniards in the diaspora often send money for tuition fees and related costs for their families back home. These are often reflected as small regular payments at the beginning of school terms.
Not every Spaniard in the diaspora wants to live, work, and retire abroad. Some of them are looking forward to coming back home in their sunset years. The savings and investments play a key role in building a nest egg.
These remittances are often sent in response to requests from home for social activities such as weddings, funerals, and community development. Money could also be sent for festivals and holiday celebrations. For instance, during Christmas and New Year, diaspora remittances to Spain increase. Other festivals include la Tomatina, Semana Santa, San Fermin, and Feria del Caballo.
Money transfer services have dominated most remittance corridors to Spain because of their efficiency, affordability, and reliability. If you have never used money transfer services, your next transfer could be a perfect opportunity to do that. Here are some of the benefits and reasons for using money transfer services.
Before you send money to Spain, there are a few considerations that you need to make to avoid inconveniences and costly transfers.
When sending money to Spain, there are few hindrances if any especially if you live and work in the EU. With that said, you should ensure that you cross-check all the money transfer providers for the best rates and transfer times.
The fastest ways of sending funds to Spain are through the services offered by the big-money transfer companies. These companies include Western Union, MoneyGram, Xoom, and PayPal. With the fast versions of any of these companies’ service, you can expect your money to reach Spain in a matter of minutes.
The only downside to these faster services is that they are very expensive. The high costs of these services are prohibitive for many people. If you are fine with waiting for a just a day or two but spending less, TransferWise and WorldRemit are cheaper, more balanced options.
The cheapest way is through OFX. Their rates are very extremely competitive from most countries. When you consider both upfront fees and hidden currency conversion costs, OFX is certainly the best option. The only downside is they are not available everywhere, and they don’t offer the best rates in all cases.
If you are in the US or UK, OFX definitely has you covered when it comes to costs. In countries where OFX is not available, TransferWise should be. TransferWise is a bit more expensive than OFX in the end, but they are also twice as fast usually.
The easiest way to transfer funds to Spain is through TransferWise. To send funds to Spain, all you need to do is tap in the amount of money and the destination. After you tap to send, all you need to do is pay TransferWise and your job is done.
The current exchange rate for the Euro (EUR) is 0.9043 Euros per American Dollar (USD). The Euro reached a high of 0.9175 USD over the last 90 days, with the low being 0.8935 USD per Euro. The average exchange rate over the last 90 days was 0.9052 USD per Euro.
The average volatility of the Euro was 0.34% against the USD over the last 90 days. The Euro has remained stable since May of 2018 when compared to other major currencies. You can reasonably expect exchange rates to remain constant going forward, barring unforeseen circumstances. Keep in mind that Britain’s exit of the European Union could have a significant impact on exchange rates for both the British Pound and the Euro.
The overall best way is through WorldRemit. While WorldRemit does offer a well-rounded service in general, they aren’t usually the most competitive option. For Spain, WorldRemit offers a good balance between their costs and speed. They don’t have any upfront fees, and their hidden currency exchange rates are pretty good.
While WorldRemit is on the lower end when it comes to cost, they are also on the higher end when it comes to speed. Most transactions are completed the next day. WorldRemit is also good for money transfers to Mexico.