How to transfer money from the USA or Canada to Spain for a property purchase (2026)

Two extra layers: FATCA / CRA and USD/CAD conversion

American and Canadian buyers face two complications that European buyers do not:

1. Tax reporting in your home country. The IRS (for US persons) and CRA (for Canadians) require ongoing disclosure of foreign assets. Buying a flat in Spain creates a reportable foreign holding.
2. Currency conversion USD or CAD to EUR. The wire itself is straightforward, but the FX spread can cost you 1-3 % of the transfer if you do not use the right route.

This article covers both. We will also flag where you absolutely need a US-savvy accountant, because some IRS rules around foreign property are subtle.

Three transfer routes

Route 1: Wise (best for amounts under $500k)

Wise is licensed in the US (Wise US Inc., FinCEN-registered MSB) and Canada, and is consistently the cheapest for transparent FX.

Parameter	2026 reality
Speed	1-2 business days from US ACH; same day from CAD account
Cost	~0.4-0.6 % of amount
USD→EUR rate	True mid-market
CAD→EUR rate	True mid-market
Per-transfer limit	$1m USD from a US account
Documents	Wise does KYC; Spanish bank does AML on the incoming side

For a $250 000 transfer: cost is roughly $1 000-1 500 vs $5 000-8 000 via a traditional US bank. Big difference.

Route 2: OFX / Currencies Direct / Wise Business

For amounts above $250 000, FX brokers often beat Wise on the rate, especially with forward contracts.

Parameter	2026 reality
Speed	Same day if booked before 11am ET
Cost	0.3-0.5 % spread, no upfront fee
Forward contracts	Lock today's rate, settle up to 12 months later
Per-transfer limit	$5m+

OFX is the most popular for Australia/Canada/US to Europe. It is regulated in all three countries.

Route 3: Traditional US bank wire

Chase, Bank of America, Wells Fargo, Citibank all can wire USD to a Spanish bank that then converts to EUR. Use only if you value the relationship over the cost.

Parameter	2026 reality
Speed	2-4 business days
Cost	$35-45 wire fee + 1.5-3 % FX spread
USD→EUR rate	Worst of the three options

A $250 000 wire via Bank of America: approximately $5 000-7 500 in spread plus $45 wire fee. Wise saves you $4 000+ on the same operation.

Practical sequence

For a typical US buyer of a €250 000 Valencia flat:

Step	What	Cost	Time
1	We help open Spanish bank account (BBVA or Santander) with your NIE	$0	1-2 weeks
2	You set up Wise USD account	$0	30 minutes online
3	You transfer USD from your US bank to Wise via ACH	$0	1-3 days
4	Wise converts USD to EUR at mid-market	~$1 000 (0.4 %)	Instant
5	Wise wires EUR via SEPA to your Spanish account	$0	Same day
6	Spanish bank issues cashier's check to seller on signing day	Included	Same day at notary
Total		~$1 000	2-3 weeks

Compare to wire via BofA: $5 000-7 500 cost, similar timing.

FATCA reporting (US persons)

If you are a US citizen, US green-card holder, or US tax resident, the IRS knows about your Spanish flat one way or another:

• Form 8938 (Statement of Specified Foreign Financial Assets): required if your total foreign financial assets exceed $50 000 (single) or $100 000 (joint) at year-end, or $75 000 / $150 000 at any point during the year. Real estate held directly by you is NOT a "financial asset" for 8938, but your Spanish bank account IS
• FBAR (FinCEN 114): required if aggregate foreign bank account balances exceeded $10 000 at any point during the year. Your Spanish bank account triggers this
• Schedule B and Schedule E: declare foreign rental income (if you rent the flat out) and foreign mortgage interest
• Foreign Tax Credit (Form 1116): claim Spanish tax paid against US tax owed on the same income

Real estate held directly (not in a foreign entity) is not itself FATCA-reportable. Your bank account holding the rental income IS.

Important: if you buy via a Spanish sociedad limitada (SL) holding company, the SL is reportable on Form 5471, which is significantly more complex. For most US individual buyers, holding the flat in your personal name is simpler.

Canadian tax reporting (T1135)

If your total foreign property (including Spanish real estate held for personal use, plus your Spanish bank account) exceeded CAD 100 000 at any point during the year, you must file Form T1135 (Foreign Income Verification Statement) with your annual return.

Real estate used personally (your vacation home) does not count toward the $100k threshold. Real estate held for rental or investment does.

So:

• Buy a flat in Valencia, use it personally only: Spanish bank account is reportable on T1135 if >CAD 100k, but the flat itself is not
• Buy a flat and rent it out: the flat IS reportable

CRA matches T1135 against Spanish tax reports under the CRS exchange. Filing late incurs penalties of CAD 25/day up to CAD 2 500.

Tax treaty - good news

Both the US-Spain tax treaty and the Canada-Spain treaty avoid double taxation. Practical effect:

• Income tax paid in Spain (IRNR 24 % on rental, etc) credits against US/Canadian tax on the same income
• You file in both countries but you do not pay twice
• The treaty has tie-breakers for "tax residency" if you become a Spanish resident

US specifically: the US taxes worldwide income regardless of residency, so even if you move to Spain you still file 1040 every year. Most US expats use the foreign earned income exclusion ($120k+ in 2026) plus foreign tax credits.

Patriot Act / OFAC for outgoing wires

US wires above $10 000 (or any wire flagged for any reason) get reviewed by Bank Secrecy Act compliance. Sending USD to Spain to buy real estate is perfectly legal and routine, but the bank may ask:

• Source of funds (salary, sale of US property, inheritance)
• Purpose (buying real estate)
• Counterparty (your own account at BBVA Spain - not a third party)

Have the answers ready. No issues if your money is from documented legitimate sources.

Currency timing

USD has been strong against EUR for several years. For a $300k purchase, a 5 % EUR move is $15 000. Options:

Approach	Best for
Pay everything now in one wire	Rate looks good, you want simplicity
Forward contract via OFX (lock today's rate, settle later)	You have time, want certainty
Drip-feed over 3 months	Smaller transfers, average out the rate

We help time it with the closing date.

FAQ

Should I form a Spanish SL holding company for tax efficiency? Usually no for a single residential property. The Form 5471 burden in the US is significant. SLs make sense for multiple properties or commercial holdings.

Can I take a mortgage from a US bank against the Spanish property? No US bank will lend against Spanish collateral. You either pay cash, take a Spanish mortgage from a non-resident program (see our mortgage guide), or remortgage your US home.

Is the FBAR penalty serious if I forget? Yes. Non-willful FBAR penalty is up to $10 000 per year per account. Willful is up to 50 % of the account balance. We are not your accountant, but: do not forget the FBAR.

Do Spanish banks accept USD wires directly? Yes, but with conversion at their internal rate (worse than Wise). Receiving in EUR is always preferable.

Can I open a Spanish account remotely from the US? Most banks require either a one-time visit OR a Spanish lawyer with power of attorney to open on your behalf. BBVA and Sabadell have remote-friendly processes for non-residents with NIE.

What we do

For US and Canadian clients we provide:

1. Wise / OFX walkthrough specific to your situation
2. Spanish account opening before your first wire (BBVA or Sabadell)
3. Coordination with the seller's notary so funds arrive in time
4. Referral to a US-Spain or Canada-Spain dual-licensed CPA if your tax position is complex

Email info@wesnagroup.com or browse our catalog.

Related:

• NIE for foreigners
• Total cost of buying property
• Mortgage for non-residents
• Annual property taxes