Are you planning to buy or sell a property in Portugal? Save money using a currency specialist
Owning a home in Portugal holds an obvious appeal for many of us. Whether it’s to reside in permanently or for use as a holiday home, we are drawn by the prospect of a stress-free, outdoors lifestyle relaxing on the beach or by the pool.
However, if you are in a position to make this dream a reality and join the thousands of adventurous Brits who already call Portugal home, there are an abundance of things that need to be arranged before you can move into your own little piece of paradise. Among the most important is organising the payment itself, which will probably involve exchanging large sums of sterling into euros and transferring it overseas to your chosen destination.
This is equally as pertinent if you have already made the leap and the time has come to sell-up and transfer the funds back to the UK, or you’re an existing expat resident considering upscaling, in search of a swimming pool or that extra bedroom, using additional funds back in the UK.
You may have your eye on a bargain property in the Algarve, Lisbon or Porto, but have you considered how to get the best deal when the time comes to send you money there? The wrong decision could add thousands of pounds to your place in the sun.
When transferring money abroad most people default to their bank. After all we use them to manage the majority of our financial affairs. But did you know you are likely to pay more using a traditional high street bank? They do not typically offer the most competitive exchange rates on international money transfers. Plus, banks may not provide invaluable expert guidance around the notoriously volatile currency markets – guidance that could otherwise be used to help you make informed decisions around the optimum time to make your transfers.
For those of you already living in Portugal, the pitfalls of using your Portuguese bank to transfer funds to or from the UK are exactly the same. What’s more there is the added disadvantage of a potential language and cultural barrier, which could further complicate the process.
Thankfully there is an alternative, one that could save you thousands of pounds. By using foreign exchange specialists moneycorp – established over 35 years ago in the UK – you could receive bank-beating exchange rates, low transfer fees and an expert personal service.
Competitive exchange rates
With moneycorp you can benefit from exchange rates that are typically 3-4pc more competitive than banks. That’s a huge saving if you are moving a large sum overseas for a property transaction: it makes €4,000 difference on a €100,000 transaction – that’s enough to cover your legal fees or even pay for renovations to your new home.
Low transfer fees
In addition to offering savings on the exchange rate, you may also find that transfer fees are cheaper with moneycorp. Banks can charge as much as €25-€50 every time you move money overseas. Whereas, with moneycorp, the transfer fees start from just €5 online up to a maximum of €12.50 if you arrange the transfer over the phone. What’s more, as a Portugal Resident reader, the cost of your first transfer fee is waived.
The reality of buying property in Portugal is that the price – in euros – is often agreed long in advance of completing on the purchase. This lengthy process can highlight the risks posed by the foreign exchange market when making international money transfers. While the exchange rate may work in your favour when you put in your offer, market fluctuations – often influenced by a range of political and economic factors – could easily change this to your detriment further down the line, driving up the cost of your new home.
Dealing with the ups and downs of foreign exchange rates can be a daunting prospect without an in-depth working knowledge of the relevant markets. With this in mind, moneycorp assigns each customer with a personal account manager – an FX expert – who will take the time to understand your requirement, guide you through the transfer process and offer you free expert guidance on movements in the complicated foreign exchange market – enabling you to make informed decisions around transferring your money.
Your personal account manager can explain the specialist tools designed to help protect you from negative rate fluctuations, such as a ‘forward contract’ (a forward contract may require a credit facility). This enables you to secure a favourable exchange rate today for a transfer that happens up to two years in the future – particularly useful when purchasing property overseas, because you can rest assured that market movements won’t impact your budget.
When sending such large sums of your money between countries it’s important to be security conscious. moneycorp has been in the foreign exchange business since 1979, and last year alone conducted £22.7 billion in currency trade globally across 8.1 million transactions. As an authorised payment institution, moneycorp is regulated by the Financial Conduct Authority for the provision of payment services. This means that clients’ funds have to be safeguarded in segregated client accounts. This is the safest way of holding client funds, as it means your money is kept completely separate from our business accounts and will only be used for your payment.
For competitive exchange rates, low transfer fees, expert guidance and the special offer of your FIRST TRANSFER FREE call moneycorp on freephone 800 785 012 or visit