.webp)
Buying a holiday home outside Europe: how to pay in foreign currency without the risk
How do you pay for a holiday home outside Europe?
Most of the times, when you buy a home outside Europe, you need to pay in the local currency (for example US dollars, Thai baht or Turkish lira), and the smart move is to lock in the exchange rate as soon as the price is agreed. There are often weeks or months between signing the preliminary purchase agreement and the actual payment. In that window the rate can move — and on a sum of several hundred thousand, a few percent easily means thousands of euros more or less.
Why is currency risk so significant when buying a home abroad?
Because it involves large, one-off amounts. Say you buy a home for $400,000. If EUR/USD moves 3% against you between contract and payment, you suddenly pay around €11,000 more — with nothing about the house having changed. That risk makes the exchange rate just as important as the asking price.
How do you lock in the exchange rate?
With a forward contract you fix today's rate for a payment in the future. You then know exactly what you'll pay in euros, regardless of what the market does afterwards. That protects your budget: the price you agree is the price you pay. A specialist FX partner like HanzePay helps you set this up and books the forward when the rate is favourable.
Why not just use the bank?
You can, but banks typically apply a wider margin on the rate for these international payments and are less flexible. A specialist gives you a sharper rate, a dedicated advisor who thinks along about timing, and the option to lock in the rate — something a standard bank transfer doesn't offer.
Steps when buying a holiday home outside Europe
- Determine the amount in local currency and the expected payment date.
- Discuss with an FX specialist whether to lock the rate with a forward.
- Lock the rate once the price is set — this eliminates the risk.
- Make the international payment at the locked-in rate.
Frequently asked questions
Can I lock in the exchange rate before I pay?
Yes. With a forward contract you fix the current rate for a later payment, so you know exactly what you'll pay in euros.
How much can I save compared with the bank?
It varies by bank and amount, but on large sums a sharper rate and avoiding adverse rate moves can easily add up to thousands of euros.
Does this also work for homes in the US, Turkey or Thailand?
Yes — the same approach applies to any payment in a foreign currency outside Europe: lock the rate and pay at that rate.
Please ask our experts any questions you may have by filling in the contact form or calling us on +31 38 202 2883. We’ll be happy to help!
Contact us.avif)
.webp)
For clients based in the European Economic Area, the issuance of e-money and the provision of related payment services forHanzePay B.V.are provided by CurrencyCloud B.V. CurrencyCoud B.V. is registered with the Dutch Chamber of Commerce in the Netherlands under number 72186178. Registered office Mr. Treublaan 7, 1097 DP, Amsterdam, Netherlands. CurrencyCloud B.V. is licensed and regulated by De Nederlandsche Bank as an Electronic Money Institution (Relation Number: R142701)
Payment services in the United States are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here: https://usa.visa.com/legal/visa-global-services-licenses.html VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.
Payment and e-money services are provided by The Currency Cloud Limited. Registered in England No. 06323311.Registered Office: 1 Sheldon Square, London, W2 6TT, United Kingdom. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).
HanzePay BV is a company registered in the Netherlands (number 84599200). Foreign exchange services are provided by Assure Hedge (UK) Limited which is authorised and regulated by the Financial Conduct Authority (firm reference number 783837) and is a company registered in England and Wales (number 10723112). The registered address is 45 Eagle Street, London WC1R 4FS, United.Policies & Complaints