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Currency, Payment, and Installments: How Online Buyers Pay
Buying property online from abroad raises one immediate question: How do I actually send the money? Between currency conversion, international transfer fees, deposit requirements, and installment options, the payment side of an overseas purchase can feel more complicated than choosing the property itself. This guide breaks every step down — with real numbers, real methods, and a clear path from reservation deposit to final payment. Whether you are buying a €35,000 studio or a €500,000 beachfront villa, the mechanics below apply.
1. The 3 Currencies You’ll Use
When purchasing property through an international developer like MAMO Property, your money will likely pass through three currencies at some point. Understanding each one helps you control costs and avoid unnecessary losses on exchange rates.
Your Home Currency
This is the currency your bank account holds — whether it is British Pounds (GBP), US Dollars (USD), Egyptian Pounds (EGP), Saudi Riyals (SAR), or any other. You earn in it, you save in it, and it is the starting point for every transaction.
Euro (EUR)
Most European and Mediterranean property developments list prices in Euros. Egypt’s North Coast, for example, frequently prices in EUR even though the local currency is EGP. If a unit is listed at €85,000, that is your contract price. You need to arrive at that figure through whichever payment method you choose.
US Dollar (USD)
Some developments — particularly those targeting Middle Eastern or American investors — list in USD. In either case, if your home currency is neither EUR nor USD, you will need a reliable foreign exchange solution. The wrong provider can cost you 3–5% on the conversion alone. On a €200,000 purchase, that is €6,000–€10,000 lost to exchange rate margins. The right provider — covered in the next section — can cut that to under 1%.
2. Bank Transfer: The Most Common Method
International wire transfer remains the dominant payment method for overseas property purchases. It is direct, traceable, and accepted by virtually every developer. Here is how it works in practice.
How It Works
MAMO Property provides you with their official bank account details — account name, IBAN (for EUR transfers), SWIFT/BIC code, and bank address. You instruct your bank to send the agreed amount. Funds typically arrive within 2–5 business days, depending on the sending and receiving banks.
Costs to Expect
- Transfer fee: Your bank may charge £15–£50 (or equivalent) per international transfer.
- Exchange rate markup: This is the hidden cost. Banks typically add a 2–4% margin on the mid-market exchange rate. On a €100,000 payment, that is €2,000–€4,000 you never see.
- Intermediary bank fees: Some transfers pass through a correspondent bank that skims a fee — usually €15–€30 — along the way.
- Receiving bank fee: The developer’s bank may deduct a small fee from the incoming amount.
When to Use It
Bank transfer is ideal for larger payments — especially final installments or full purchase amounts above €50,000 — where the security of a direct bank-to-bank transaction matters. It is also the method most developers prefer for audit trail purposes.
Tips for Smoother Transfers
- Always include the invoice number or unit reference in the transfer description. This ensures MAMO Property can match your payment to your file immediately.
- Request a confirmation receipt from your bank once the transfer is processed.
- Send a screenshot or PDF of the transfer confirmation to MAMO Property via WhatsApp so they can begin tracking it.
- If sending in your home currency (not EUR), ask your bank what the receiving amount in EUR will be after conversion, so there are no shortfalls.
3. Wise (formerly TransferWise): Lower Fees for EUR/GBP/USD
If bank transfers are the default, Wise is the upgrade. Founded in 2011, Wise has become the preferred money transfer platform for international property buyers — and for good reason.
How It Saves You Money
Wise uses the mid-market exchange rate — the same rate you see on Google or Reuters — and charges a small, transparent fee. Traditional banks add a 2–4% markup on the exchange rate. Wise saves you 2–3% on currency conversion compared to a standard bank wire.
| Transfer Amount | Bank FX Markup (~3%) | Wise Fee (~0.5%) | You Save |
|---|---|---|---|
| €35,000 | €1,050 | ~€175 | ~€875 |
| €100,000 | €3,000 | ~€500 | ~€2,500 |
| €250,000 | €7,500 | ~€1,250 | ~€6,250 |
| €500,000 | €15,000 | ~€2,500 | ~€12,500 |
How to Pay with Wise
- Create a free account at wise.com and verify your identity (takes 10–15 minutes).
- Select “Send Money” and enter the amount in EUR.
- Enter MAMO Property’s bank details (same IBAN and SWIFT as a regular transfer).
- Pay via your local bank transfer, debit card, or Wise balance.
- Wise converts at the mid-market rate and delivers EUR to the developer’s account — usually within 1–2 business days.
When to Use It
Wise is excellent for deposits, installment payments, and any transfer under €100,000. For amounts above €100,000, Wise still works well, but some buyers prefer splitting large sums into two transfers for added comfort. Wise has no upper limit on verified accounts, though your own bank may have daily transfer caps you need to adjust.
4. PayPal: When It Works
PayPal is a household name for online payments, and it does have a role in overseas property transactions — but a limited one.
The Benefits
- Speed: Payments arrive almost instantly.
- Buyer protection: PayPal’s dispute resolution mechanism offers some peace of mind for initial deposits.
- Convenience: If you already have a funded PayPal account, there is no need to visit a bank or set up a new platform.
The Limitations
- Fees: PayPal charges 3.5–4.5% on international commercial transactions. On a €50,000 deposit, that is €1,750–€2,250 — significantly more than Wise.
- Currency conversion margins: PayPal’s exchange rate markup is typically 2.5–4%, similar to banks.
- Transaction limits: PayPal may flag or hold large transactions for review, causing delays.
- Not all developers accept it: Due to the fees on the receiving end, many developers — including some units at MAMO Property — may not accept PayPal for contract-level payments.
When to Use It
PayPal is best suited for small reservation fees — think €500 to €2,000 — where speed matters more than cost. It can also be useful for paying ancillary costs like legal fees or furniture packages if the provider accepts it. For deposits and installments in the €35K–€500K range, Wise or bank transfer is almost always more economical.
5. Installment Plans: 0% vs 5–7% Interest
One of the biggest advantages of buying off-plan or under-construction property is the installment plan. Instead of paying the full amount upfront, you spread payments over the construction period and sometimes beyond. But not all installment plans are created equal.
0% Interest Installments
Many developers — including MAMO Property on select projects — offer 0% interest installment plans. This is a direct agreement between you and the developer. No bank is involved. No credit check is required. The developer simply allows you to pay the purchase price in scheduled tranches over a defined period.
Typical structure:
- Down payment: 10–30% of the purchase price upon signing.
- During construction: Monthly or quarterly installments covering 40–60% of the price.
- Upon delivery: The remaining 10–20% at handover.
- Post-delivery: Some plans extend 5–7 years after delivery at 0% interest, making monthly payments very manageable.
On a €150,000 unit with a 30% down payment and a 5-year post-delivery plan, your remaining balance of €105,000 splits into 60 monthly payments of €1,750 — with zero interest.
5–7% Interest Installments
Some financing arrangements carry interest, typically at 5–7% annually. These usually occur when:
- The developer partners with a bank or
MAMO Property — Licensed Real Estate Agency in Hurghada. Commercial Registry 282312, Tax 779-072-677. WhatsApp: +20 115 298 0998
