When you sell a property in Spain, it’s easy to think the hard work is done once you’ve agreed on a price and signed on the dotted line. But when it comes to receiving the proceeds from your sale, there’s one detail that often catches sellers by surprise: the Spanish banker’s draft.

Unlike in the UK, where funds are typically transferred directly between accounts, property sale proceeds in Spain are usually paid by banker’s draft (known locally as a cheque bancario). While secure, this method works differently from what many international sellers expect, and it can create extra costs and delays if you’re not prepared.

In this blog, we’ll explain what a banker’s draft is, why it matters, and how to navigate the process smoothly so your proceeds arrive home without hassle.

1. What is a banker’s draft?

A banker’s draft is a paper cheque issued by the buyer’s bank. It guarantees payment because the buyer’s funds are already set aside, making it one of the safest ways for a buyer to pay. In Spain, it’s a common method for high-value transactions like property sales.

On completion day, the buyer hands you (or your representative) the banker’s draft at the notary’s office. This confirms they have the funds ready, but it’s not the same as having the money in your bank account.

2. Why it can cause delays

Unlike a UK bank transfer, you can’t simply pay the cheque into your bank and expect instant access to the money. If you deposit the banker’s draft into a Spanish bank account, there are two common hurdles:

• Processing times: Clearing the draft can take several days or even weeks, especially if the funds are being moved abroad.
• Extra fees: Spanish banks often charge commission or handling fees to process banker’s drafts, both on deposit and withdrawal. On a large property sale, these costs can run into the thousands.

For sellers who need the proceeds quickly, or who want to repatriate their money to the UK or elsewhere, this step can feel like an unnecessary delay.

3. Options for moving your funds abroad

If you’re selling in Spain but planning to use the proceeds in another country, you’ll want to think carefully about how to handle the banker’s draft. You generally have three options:

1. Deposit into a Spanish bank account and transfer later: This gives you access to the funds eventually, but you’ll need to factor in bank fees, exchange rate margins, and potential delays.
2. Cash the draft directly through a specialist: Some providers, like international payment specialists, can process the draft for you and arrange for the funds to be sent straight to your UK or overseas account. This removes the need to go through a Spanish bank and often saves time and money.
3. Hybrid approach: In some cases, sellers use their Spanish account for part of the funds and a specialist for the rest, depending on their circumstances and currency needs.

4. Currency exchange considerations

For many sellers, the proceeds from a Spanish property sale are worth hundreds of thousands of euros. That means even small shifts in the exchange rate can make a big difference to what arrives in your home account.

Relying on your bank for the transfer usually means less competitive rates, reducing the final amount you receive. A currency specialist can help you:

• Secure better exchange rates than most high street banks
• Lock in a rate in advance, so you know exactly how much you’ll receive when you send your proceeds home
• Move funds quickly and securely, without unnecessary Spanish banking charges

This can make the difference between losing and saving thousands on your sale proceeds.

5. How to prepare before completion day

The best way to avoid stress is to plan ahead. Before the day of the sale, consider:

• Talking to your notary and solicitor: Confirm whether a banker’s draft will be used and check if multiple drafts are needed (for example, if part of the price is paid directly to clear a mortgage).
• Deciding how you’ll process the draft: Will you deposit it into a Spanish bank account, or arrange for a specialist to handle it directly?
• Lining up your currency transfer strategy: Exchange rates can move daily, so having a plan in place means you won’t be caught off guard.

Selling a property in Spain?

Selling a property in Spain is a big milestone, but how you handle the banker’s draft can shape your experience and your final return. While it may seem like a small detail, failing to prepare can lead to unexpected costs, delays, and added stress at the very point when you want everything wrapped up.

By understanding how the process works, exploring your options, and getting the right support, you’ll be in a much stronger position to make sure your sale proceeds move home smoothly, securely, and cost-effectively.

Written by Lumon for Rightmove.