For transfers to Portugal above roughly £10,000, a specialist currency broker will almost always beat a high street bank — typically by 3–4% of the transfer value once the exchange rate margin is included. On a £300,000 property purchase, that difference is worth around €10,000. The margin, not the transfer fee, is where the money goes.
Who this guide is for
You are moving money from a UK bank account to a Portuguese one — for a property purchase in the Algarve or Lisbon, to fund a D7 or Golden Visa relocation, to support family, or to pay a Portuguese builder, lawyer or developer.
This guide is aimed at larger transfers, from £10,000 up to seven figures. If you are sending £200 to a friend, an app will serve you perfectly well.
What is the best way to send money to Portugal from the UK?
There are three realistic routes. They differ far more in cost than most people expect, because the headline “fee” is rarely where the money goes.
| Method | Typical FX margin | Transfer fee | Speed | Best for |
|---|---|---|---|---|
| High street bank | 3–4% above mid-market | £15–£40 | 1–4 working days | Convenience, existing relationship |
| Currency broker | 0.2–1% above mid-market | Usually £0 | 1–2 working days | £10,000+, property, forward contracts |
| Money transfer app | 0.4–1.5% above mid-market | £2–£15 | Minutes–1 day | Small, frequent transfers |
The number that matters is the exchange rate margin, not the fee. A bank advertising “£0 transfer fee” while applying a 3.5% margin costs you £10,500 on a £300,000 transfer. A broker charging no fee at a 0.5% margin costs £1,500.
Apps look cheap on small sums and often stay competitive into the low tens of thousands. Their disadvantage on large or time-sensitive transfers is that they typically offer spot execution only — no forward contracts, no market orders, and no named person to call when a completion date moves.
How to send money to Portugal: step by step
- Get your Portuguese NIF and bank account in place. You cannot complete a property purchase without a número de identificação fiscal. Most buyers arrange this through their Portuguese lawyer before making an offer.
- Register with your provider and complete ID checks. You will need photo ID and proof of address. Registration is free and takes minutes. Do this before you need the money — not on completion day.
- Provide the recipient’s Portuguese IBAN. Portuguese IBANs begin with PT50, followed by 21 digits. Check every character. An incorrect IBAN is the single most common cause of a delayed transfer.
- Agree your rate and book the trade. You confirm the rate by phone with a dedicated specialist. Once agreed, the rate is fixed for that transaction — it cannot move against you afterwards.
- Send your sterling to the broker’s client account. UK payments arrive same-day via Faster Payments or CHAPS.
- Funds are converted and paid to Portugal. Euros typically land in the Portuguese account within one to two working days.
What does it actually cost to send money to Portugal?
Three costs, in descending order of importance.
The exchange rate margin. This is the gap between the mid-market rate and the rate you are given. It is where banks make their money and it is rarely disclosed. Always ask for the mid-market rate and your rate, and calculate the difference yourself. We explain this in more detail in our guide to why banks give worse exchange rates.
The transfer fee. £15–£40 at a UK bank. Usually zero with a broker on transfers of this size.
The receiving bank charge. Some Portuguese banks apply an incoming payment charge, typically €5–€20. Ask your bank in Portugal.
There is also a fourth cost most buyers miss entirely: the transaction taxes on the Portuguese side. Budget 6–10% of the purchase price on top of the price itself. Under Decreto-Lei n.º 97/2026 of 20 May 2026, which implemented Lei n.º 9-A/2026, acquisitions by non-residents of urban property intended for housing are subject to a flat IMT rate of 7.5%, with no exemptions or reductions applied. The regime applies to purchases completed from 25 May 2026, and the date of the escritura determines which rules apply.
The 7.5% rate is not universal, and the exceptions matter. It may not apply if you are already a Portuguese tax resident, or if you become tax resident within two years of the acquisition. It may also not apply where a non-resident lets the property residentially within the rent limits set out in the decree — let within six months of purchase and kept let for at least 36 months, consecutive or interpolated, across the first five years. If you are buying with the intention of relocating, your IMT position may be materially different from the headline rate. Confirm it with a Portuguese tax specialist before you budget.
That tax bill is paid in euros. It needs to be part of your currency planning, not an afterthought.
Timing and risk on the GBP/EUR corridor
A 2% move in GBP/EUR over the two to three months of a typical Portuguese purchase is entirely ordinary. On €400,000, 2% is €8,000. That is the exposure you are carrying between signing and completing, and it has nothing to do with the property market.
GBP/EUR is driven almost entirely by the interest rate differential between the Bank of England and the European Central Bank. When the BoE is cutting faster than the ECB, sterling tends to weaken; when the gap widens in sterling’s favour, it tends to strengthen. Everything else — data prints, politics, risk sentiment — mostly matters through its effect on what those two banks are expected to do next.
That is the mechanism. The current levels change weekly, so we keep them on pages built to be updated:
- Check the live GBP/EUR rate before you budget.
- Read the current Pound to Euro forecast for where the rate differential stands now.
- See the next Bank of England decision date — MPC meetings with a Monetary Policy Report attached tend to produce the larger moves.
The practical point does not change with the rate: a buyer with an unhedged euro liability three months out is carrying real currency exposure, whatever the market is doing today.
Three ways to manage that exposure
- Spot contract — convert at today’s rate, funds move immediately. Simple, and appropriate when you need euros now.
- Forward contract — fix today’s rate for a date up to 12 months ahead, usually for a deposit of around 5–10%. This is the standard tool for property buyers, because it makes your purchase price in sterling a known number the day you sign the CPCV.
- Market order — set a target rate and the trade executes automatically if the market reaches it. Useful when you have time and a specific level in mind.
A forward contract does not get you a better rate. It removes the uncertainty. Those are different things, and confusing them is a common and expensive mistake.
Why a specialist broker matters on this corridor
Portuguese purchases run on a fixed legal timetable, and that timetable is unforgiving.
At the CPCV (contrato de promessa de compra e venda) — the promissory contract — you pay a deposit of 10–30% of the purchase price. It is legally binding: if you walk away, you forfeit the deposit; if the seller walks, they owe you double. From accepted offer to final registration typically takes 4 to 12 weeks, ending with the escritura signed before a notary.
That structure creates two currency moments — the deposit and the balance — often separated by two or three months of exchange rate movement. A broker lets you fix the rate for both at the point you commit, so the sterling cost of your Portuguese property is known before you sign anything binding. Our guide to buying property abroad covers the wider process.
Cambridge Currencies arranges international payments through our FCA-authorised partners, Currencycloud (FRN 900199) and ScioPay (FRN 927951). Client funds are safeguarded in segregated accounts. Every transaction is completed by phone with a dedicated specialist — which, on a completion day when a lawyer needs funds in Lisbon by 2pm, is the difference between a person answering and a support ticket.
Frequently asked questions
What is the cheapest way to send money to Portugal from the UK?
For transfers above £10,000, a specialist currency broker is usually cheapest, because the exchange rate margin — not the fee — is the dominant cost. Banks typically apply a 3–4% margin; brokers typically apply 0.2–1%.
How long does a transfer from the UK to Portugal take?
Usually one to two working days through a broker. Bank transfers can take up to four.
What details do I need to send money to Portugal?
The recipient’s full name and their Portuguese IBAN, which begins with PT50 and runs to 25 characters in total. For property purchases you will also need a Portuguese NIF (tax number).
Do I pay tax when transferring money to Portugal?
Transferring your own money does not itself trigger tax. Buying property does. For purchases completed from 25 May 2026, non-residents buying urban residential property in Portugal pay a flat 7.5% IMT rate, plus 0.8% stamp duty and registration fees. The 7.5% rate may not apply if you are already a Portuguese tax resident, if you become resident within two years of the purchase, or if you let the property residentially within the defined rent limits. Total transaction costs generally run 6–10% of the purchase price. Confirm your position with a Portuguese tax specialist.
Can I fix an exchange rate in advance for a Portuguese property purchase?
Yes. A forward contract lets you fix a rate for a date up to 12 months ahead, typically for a deposit of 5–10%. This is widely used by buyers who sign a CPCV months before completion.
Is it safe to send large sums to Portugal?
Use a provider operating under FCA-authorised permissions with segregated client accounts. Verify the recipient’s IBAN directly with your lawyer by phone — never solely from an emailed document, as conveyancing fraud on this corridor is a real risk. You may also need specific documents for large international transfers.
Does Brexit affect sending money to Portugal?
No. UK-to-Portugal transfers work exactly as before. The UK remains a SEPA participant, and payments are unaffected.
Speak to a specialist about your Portugal transfer
If you are buying in Portugal, funding a move, or repatriating euros to sterling, a short conversation is usually enough to establish whether a spot contract or a forward contract fits your timetable.
Request a quote and speak to a dedicated Cambridge Currencies specialist by phone. No obligation — and we will tell you honestly if your bank is competitive on the amount you are moving.
Related guides
- Send Money to Spain — the neighbouring corridor, same euro considerations
- FX services for overseas property buyers
- Forward vs spot: which is right for you?
