Three Risks When Transferring Dollars to Spain

Transferring US dollars to Spain can involve US sanctions screening, double currency exchange fees, and difficulties with cash. Proper document preparation and agreeing on terms with the bank in advance significantly reduce these risks.

US sanctions screening

A dollar transfer often passes through a US correspondent bank. In this case, the payment is checked under US law, including sanctions restrictions. This can lead to requests for additional documents, frozen funds, delayed transfers, or a full refund.

The difficulty is that even if the Spanish bank has approved the transaction and accepted all submitted documents, the US correspondent bank may still require additional paperwork regardless of the Spanish bank’s decision.

Double currency exchange fee

When transferring in dollars, the money is exchanged twice. First, you pay a fee to convert your national currency into dollars. Then, when the funds arrive in your Spanish account, you pay a second fee to convert dollars into euros. Each exchange increases the cost of the transfer.

Difficulties with cash dollars

Although some Spanish banks open accounts in US dollars, having a dollar account does not guarantee the bank will accept cash dollars. This needs to be clarified separately in advance.

When entering the European Union, you can bring in cash up to the equivalent of 10,000 euros duty-free without declaring it. If you’re carrying a larger amount, it’s recommended to declare it in advance. With a customs declaration and documents proving the origin of the money, the bank is more likely to accept the cash and open an account.

If the amount exceeds 10,000 euros and you don’t have a declaration, you need to agree in advance with the bank on the required documents for the transaction.

How to simplify the transfer

For transactions in Spain, such as buying real estate, it’s recommended to transfer money directly in euros from your national currency. This avoids extra fees and simplifies verification.

If you already have cash in euros or dollars, agree on the documents with the bank in advance, prepare them, and only then deposit the money into the account. Before sending funds, be sure to agree with the bank on all documents concerning the origin of the money.

Typical set of documents

The bank may require documents confirming the source and purpose of the money. The set of documents depends on the specific case and the requirements of both the Spanish bank and the US correspondent bank. Clarifying the requirements in advance helps avoid delays and refusals.