Portugal is a popular destination for Brits. If you need to send money to someone there, you could lose valuable time and money by using banks.
A better solution? Use a fast and cheap dedicated money transfer service. Wise is our top choice as it doesn’t mark up the exchange rate and will get your money there in just 2 hours.
Learn more about Wise, our other top choices, and what you need to know before sending money to Portugal.
Top Money Transfer Providers to Send Money to Portugal
Wise gives you the best of both worlds. Transfers to Portugal are quick, arriving in just 2 hours. What’s more, the fees are just £0.21 plus 0.42%, with no exchange rate markup, making Wise on of the cheapest options.
You can send up to £1 million per transaction to Portugal using the Wise app. Regulated by the FCA, Wise also offers multi-currency accounts and interest if you want to hold currencies. If you do business across borders, you’ll find a whole host of other benefits such as batch payments and accounting software integrations.
Simply fund your transaction using your credit/debit card, bank transfer, or Apple Pay, and let Wise do the rest.
- Two-factor authentication and a fraud mitigation team.
- Transparent fee structure.
- Diverse pay-in options.
- Verification process could take time in some cases.
- Potential extra fees for payments via SWIFT networks.
If you don’t have time to wait around, Xe could be the service for you. The website claims that you can send money in seconds. While it can take up to 24 hours to process transfers by card or wire, your transfer could be completed within minutes if you opt for mobile wallet.
There aren’t any fees for using this service, but with an exchange rate that’s 0.9% higher than the mid-market rate, you’ll get a better deal elsewhere.
You can pay with card, wire transfer, or direct debit. And the other person can receive the funds via bank account, mobile wallet, or cash pickup.
- A choice of delivery options
- Mobile wallet transfers can be deposited in minutes
- No transfer fee
- There’s an exchange rate mark-up
- There’s a transfer limit of £350,000
Atlantic Money is an FCA-regulated money transfer service. It will let you send up to £1 million to Portugal from the UK in a single bank transfer for a flat fee of £3. If you want the funds to arrive fast, like instantly, an additional fee of 0.1% of the transfer amount will apply.
The best part is Atlantic Money facilitates transactions at mid-market rates on all weekdays. This means you could avoid exchange makeup fees altogether. They claim to be 10X cheaper than Wise. We don’t have figures to verify this but a £3 fee on a large transfer is super cheap.
Atlantic Money is also great for you if you make business payments to workers employed in Portugal. Their user-friendly app allows you to easily set up a business account, add recipients, and send money in a few clicks.
- No exchange markup fees.
- Dedicated team to assist with any issues.
- Partnerships with global interbank exchanges
- Limited pay-in and pay-out options.
- Additional verification, like selfie-ID checks for some transactions.
How to Send Money to Portugal Using a Money Transfer Provider?
The process of sending money to Portugal by using an online money transfer service is simple. You only need to follow these three steps to execute a transaction!
Step 1: Compare Providers to Find the One That Best Fits You
Step 2: Sign Up with the Chosen Provider
Step 3: Transfer Money
Fastest Way to Send Money to Portugal
Xe is our top choice for speedy online money transfers. The website claims you can send money in seconds. Although there will be additional processing time for some transfer methods, it only takes minutes to send money to mobile wallets.
What’s more, you can easily track your transfer and see when it arrives.
Cheapest Way to Send Money to Portugal
Unless you're sending a small amount, Atlantic Money will be your cheapest option. Like Wise, it uses the mid-market exchange rate so you don’t need to worry about hidden costs. But Atlantic Money’s flat £3 fee is way cheaper than Wise’s percentage fee when you’re sending a significant amount.
In fact, if you send £100,000 to Portugal, your recipient will get at least €300 more with Atlantic Money than with any other provider.
What Are the Best Apps to Send Money to Portugal?
The Wise, Xe, and Atlantic Money apps have all proved popular. They’re rated 4.7, 4.8, and 4.9 stars, respectively, on the Apple and Google Play stores. They’re all regulated by the FCA, and Wise provides extra handy features like a multi-currency bank account and interest on EUR.
Transfer Safety
An international bank transfer has long been the most reliable way to send money to Portugal. But faster and cheaper money transfer providers also have strong safety measures. The most important thing is to choose a regulated service, like the ones featured in this guide.
Money transfer services have adopted several security measures like integrating standard encryption features, email verification, hiring fraud detection teams, and staying compliant with global regulators.
Make sure you only send money to people you trust, and that you double-check their payment details to avoid errors.
Things to Consider When Sending Money to Portugal Online
Here are some things you should know before sending to Portugal:
Local Authorities
Banco de Portugal is the country’s central bank. It oversees local and foreign trade policies, develops regulatory frameworks for financial institutions, and monitors financial transactions, including cross-border payments.
Meanwhile, the Tax and Customs Authority (Autoridade Tributária e Aduaneira, AT) is responsible for income taxes and processing returns. It also plays a vital role in tracking and investigating tax evasion cases.
The Financial Conduct Authority (FCA) and the HMRC in the UK regulate international payments in alignment with anti-money laundering rules.
How Much You Are Sending Abroad
While there is often a limit to how much you can send from the UK at once, there is no threshold to the overall amount you can transfer in multiple transactions over time.
Your international money transfer provider could impose limits. However, they are generally flexible, as long as you have your financial documents and ID proofs ready.
Before sending money to Portugal, especially to workers or businesses, ensure their details are verifiable. This is to ensure your transactions aren’t flagged for security reasons. It might not be your fault, but explaining that to the regulator could be time-consuming when large amounts of money are involved.
The Cost of Money Transfer
Sending money abroad often comes with fees. They could arise from transfer fees or exchange markup fees. In addition, factors like delivery speeds, destination country, and even deposit amounts also directly impact these transfer costs. The transfer providers we have discussed offer either no fees or no markups, making them much cheaper than banks.
However, some fees, like third-party charges, could be unavoidable. Your credit card provider might charge you for using your card to fund international transfers. Furthermore, some transfers could go via multiple intermediary banks, each with unique fees chipping away at your principal amount.
Payment Type and Reason for the Transfer
Payments sent from the UK to Portugal are considered personal transfers or business income. If you’re asked the reason for your transfer, provide it. This will make it easier for your transfer to be processed.
If transferring a large amount of money, providing a reason is even more important to avoid it being flagged as suspicious. Occasionally you could be asked to provide extra supporting documents.
Tax Regulations in Portugal
UK authorities allow you to send up to £3,000 abroad without attracting gift taxes.
People receiving money in Portugal as gifts or financial support have to pay a stamp tax of 10% on the total amount.
Moreover, Portugal imposes progressive taxes on its residents for domestic or worldwide income at 14.5%-48%, depending on your income level. Meanwhile, non-residents are taxed at 25% for income from Portuguese sources.
What Do You Need to Send Money to Portugal?
To send money to Portugal, you need the following details:
Recipient name, residential or business address detailing city and state.
Recipient bank name, nationality, and IBAN/SWIFT details.
Valid government photo ID, bank statements, and income documents for larger payments.
What Do You Need to Receive Money in Portugal?
Cash pickup in Portugal doesn’t require the recipient to have a bank account. To collect money at the designated cash pickup location, the person must share a reference code and verify their identity using a valid government ID for a seamless experience. For other payment methods, the receiver must have the following:
Valid bank account and IBAN (SWIFT/BIC code optional).
Current residential or business address.
A phone number for mobile payments.
Valid government ID
