Gtres
Gtres

If you have a second house in Portugal, it may often necessary to send money there to pay for bills, taxes and other living expenses, but it’s sometimes difficult to know how to do it, whether with banks or with money transfer companies. So what’s the best way to transfer money from the UK to Portugal?

Banks

The first and most blatant way of sending money abroad is with a standard bank transfer – just go to your local bank branch with the account number of the bank account in Portugal where you want to pay the money, and the bank takes care of the rest. You could even do it at most ATMs nowadays.

The problem with international bank transfers is that banks charge relatively high rates to perform this service. Sometimes you only want to send a little bit of money, but the bank fees you would have to pay make it not worth your while. Also, bank transfers can take a long time to arrive to the recipient, which is not good if you want to send money fast.

On the other hand, if you have to make regular payments, it’s best to have a bank account in your name with the same bank in both countries as it makes the payment process faster (and free!). One bank that operates in both Portugal and the UK is Barclays.

Money transfer companies

Because of these disadvantages of bank transfers, some people prefer to send money online instantly using internet money transfer services and Apps. Money transfer companies are private third-party intermediaries which work by you paying your money into their holding account and them paying it into any account you tell them. All you need to make a money transfer this way are your personal details, the contact details and account number of the recipient, and your reason for the money transfer.

These international money transfer services have the advantage of charging significantly lower fees than banks and they are quicker too. You can send money to a different country at any time of day, even when your bank is closed. You can use it for one-off payments or for making regular transfers too, giving you the possibility of using a money transfer company to have your British pension paid into a Portuguese bank account. It’s also a good option if you want to know how to transfer money from Portugal to a UK bank too.

That said, there are loads of different money transfer companies on the market to choose from, so which one is best? You should always compare and shop around the different companies until you find one that works for you and is right for your needs. Pay particular attention to the transfer fees they charge and the exchange rate they offer.

These are the top 10 money transfer companies:

  1. TransferWise Money Transfer
  2. MoneyGram
  3. Moneycorp Money Transfer
  4. Post Office International Payments (Post Office International Payments is powered by TTT Moneycorp Ltd.)
  5. XE Money Transfer
  6. Remitly
  7. Ria Money Transfer
  8. CurrencyFair
  9. The Currency Account Money Transfers
  10. Virgin Money International Money Transfer

The best way to pay for things in Portugal

During your stay in Portugal, there are a few different ways you can spend money to buy things apart from changing pounds to euro, which is not always the most efficient way. For example, if you’re only in Portugal for a short period and want to place a cap on your own spending, it may be best to use an international money order.

Another alternative to using cash when you’re in Portugal is a specialist bank card provided by your bank. Some banks have specialist deals which mean you can pay for things by card and take out money in a different country without paying extortionate fees. For a small initial price, you can get this additional “specialist plastic” service from your bank.

Specialist credit or debit cards for spending money overseas are a brilliant option if you have a holiday home or second house in Portugal and spend a few months there each year but you don’t want to get a Portuguese bank account. Just make sure you check before you get one that your energy and water suppliers in Portugal will allow you to pay your bills using this card. Remember to pay off all your expenditure at the end of the month so there isn’t any surprise interest to pay.