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How to Send Money to Portugal (& Get the Best Possible Rate)

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Last updated on June 14, 2024 | Est. Reading Time: 4 minutes

If you’re living in Portugal, or just spending a lot of time here, it’s quite likely that you’ll need to transfer money from a foreign bank account to a Portuguese bank account.

For example:

  • You may need to transfer your pension or social security from another country to Portugal.
  • You may need to transfer money to a Portuguese bank account for your visa application (e.g. for the D7 or D8).
  • You may need to transfer money to buy a house in Portugal.
  • You may need to transfer your savings over.

If you’re moving from another country that uses the euro (e.g. France) transferring money is free and easy, thanks to the Single Euro Payments Area (SEPA). However, if you’re moving from outside the eurozone, e.g. the US or UK, you’ll be transferring from one currency to another (e.g. dollars to euros or British pounds to euros).

Because of this, it makes sense to find the company that offers the best possible deal.

Tip: that’s unlikely to be your bank! Online money transfer services like CurrencyFair typically offer much better deals. And if you don’t have a Portuguese bank account yet, be sure to read out article on opening a bank account in Portugal.

Is Wise the best site?

When transferring money internationally as an expat, it’s important to find a service that offers competitive rates and low fees. While high street banks often charge high fees and offer poor exchange rates, there are several online alternatives to consider:

  • Wise (previously Transferwise):
    • Easy to use, particularly for small to medium-sized transfers.
    • Offers great rates, but may be every so slightly more expensive than some competitors.
  • Atlantic Money (currently only available in the UK and EU):
    • Charges a fixed £3 fee, regardless of the amount sent.
    • Often the best option for larger transfers (e.g., €10,000 or more).
    • Can save you hundreds of euros compared to Wise when sending large amounts.
  • Revolut (available in the UK, EU, and US, among other locations):
    • Great for sending smaller amounts (less than €1,000 per month).
    • No fees for exchanges up to €1,000 per month (or no limit with Revolut Premium).
    • Instantaneous transfers
    • Avoid transferring on weekends and holidays to get the best rates as Revolut charges a small markup (typically around 1%).

What About Regular Transfers?

When it comes to regular international transfers, you may wonder whether it’s best to transfer smaller amounts monthly or larger sums all at once. Here are some factors to consider:

  • Fees:
    • Services like Wise typically have lower fees for larger transfers.
    • Atlantic Money charges a fixed £3 fee, making it more cost-effective for larger, less frequent transfers.
  • Exchange Rates:
    • Some people prefer to wait for favorable exchange rates before transferring.
    • However, predicting currency fluctuations is nearly impossible.
  • Budgeting:
    • Monthly transfers can help with budgeting and managing cash flow.
    • Transferring larger sums all at once may make it easier to lose track of spending.

Ultimately, the best approach depends on your individual circumstances and preferences. If you’re using a service with tiered fees like Wise, it may be more cost-effective to make larger, less frequent transfers. However, if you’re using a service with a fixed fee like Atlantic Money, the frequency of your transfers won’t impact the overall cost.

While some people try to time their transfers based on exchange rates, it’s important to remember that currency fluctuations are unpredictable. Attempting to wait for the “perfect” rate may lead to missed opportunities or even losses.

Consider your budgeting needs and personal preferences when deciding between monthly or all-at-once transfers. If you prefer a more structured approach to manage your cash flow, monthly transfers might be the way to go. However, if you’re comfortable managing larger sums and want to minimise fees, transferring all at once could be the better option.

What about the other options?

Wise, Revolut, and Atlantic Money are just three of many currency transfer services available. Other options include PayPal, XE, Western Union, Remitly, and Zoom. However, in our tests, we didn’t find them to offer better rates. For large amounts, consider a currency broker like OFX, although it may be hard to find a better deal than the aforementioned services.

It’s also worth speaking to your bank, especially if you’re transferring a large amount, as some people feel more comfortable using their bank for significant transfers. However, banks often have higher fees and less competitive exchange rates compared to online services.

In summary, when transferring money to Portugal as an expat, research and compare various online money transfer services to find the best combination of fees, exchange rates, transfer speeds, and security that suits your needs. Don’t forget to consider country-specific requirements and any additional fees that may impact your transfers.

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