Sending Money from Portugal — Remittance Guide

How International Transfers Work

When you send money from Portugal to another country, the transfer passes through one of two main systems depending on the destination:

• SEPA (Single Euro Payments Area) — For transfers within the EU and EEA in euros. SEPA transfers are fast (typically same-day or next business day) and inexpensive. SEPA Instant transfers arrive within seconds and are available at many Portuguese banks.
• SWIFT (Society for Worldwide Interbank Financial Telecommunication) — For transfers outside the EU or in non-euro currencies. SWIFT transfers pass through one or more intermediary banks, which adds time and cost. They typically take two to five business days.

Online remittance services like Wise, Remitly, and WorldRemit use their own networks and pooled accounts to move money faster and more cheaply than traditional SWIFT transfers, though the underlying mechanism varies by provider.

Bank Wire Transfers

Every Portuguese bank offers international wire transfers. This is the most straightforward option if you already have a Portuguese bank account.

SEPA Transfers (Within the EU)

SEPA transfers in euros between EU/EEA countries must be priced the same as domestic transfers under EU regulation. Most Portuguese banks charge little or nothing for standard SEPA transfers. SEPA Instant may carry a small additional fee depending on your bank.

SWIFT Transfers (Outside the EU)

Sending money outside the EU via your bank typically involves:

• Transfer fee — A fixed fee charged by your bank, which varies by institution. Check your bank’s current fee schedule.
• Exchange rate markup — Banks apply their own exchange rate, which includes a margin above the mid-market rate. This margin is often the largest hidden cost.
• Intermediary bank fees — SWIFT transfers may pass through intermediary banks that deduct their own fees. You can choose who pays these (sender, recipient, or shared), but the “sender pays all” option (OUR) is the most predictable.
• Receiving bank fee — The recipient’s bank may also charge a fee on their end.

Online Transfer Services

Several online services specialise in international money transfers and typically offer better exchange rates and lower fees than banks for non-SEPA transfers.

Wise (Formerly TransferWise)

Wise is one of the most popular services among immigrants in Portugal. It uses the real mid-market exchange rate and charges a transparent, upfront fee that varies by corridor and payment method. Transfers typically arrive within one to two business days. Wise also offers a multi-currency account with a debit card, which is useful if you hold money in multiple currencies.

Western Union

Western Union has a large network of physical agent locations across Portugal, making it accessible for those who prefer cash-based transactions. You can send money for cash pickup, bank deposit, or mobile wallet delivery depending on the destination country. Fees and exchange rates vary by transfer amount, destination, and whether you pay online or at an agent location. Cash pickup at the receiving end is often the fastest option.

Remitly

Remitly is designed specifically for immigrant remittances and supports many popular corridors from Portugal to South Asia, Southeast Asia, Latin America, and Africa. It offers express and economy delivery options with different fee and speed trade-offs. Delivery methods include bank deposit, cash pickup, and mobile money depending on the destination.

WorldRemit

WorldRemit covers a wide range of destinations and delivery methods including bank transfer, cash pickup, mobile money, and airtime top-up. It is particularly strong for African and Asian corridors. Fees and exchange rates are displayed upfront before you confirm.

Other Services

Other services available from Portugal include Revolut (which offers international transfers through its app), Skrill, and various corridor-specific providers. New services enter the market regularly, so it is worth comparing current options for your specific destination.

How to Choose a Service

No single service is the best for every situation. Compare these factors for your specific transfer:

• Total cost — Add the transfer fee and the exchange rate markup together. A service with a low fee but a poor exchange rate may cost more overall than one with a higher fee and the mid-market rate.
• Exchange rate — Compare the rate offered against the mid-market rate (check Google or xe.com). The difference is the provider’s margin.
• Speed — Some services deliver within minutes (especially for cash pickup), while bank transfers may take several days.
• Delivery method — Consider whether the recipient needs cash pickup, bank deposit, or mobile money. Not all services support all methods in every country.
• Transfer limits — Services have minimum and maximum amounts per transaction and per period. Verify these meet your needs.
• Payment method — Paying by bank transfer is usually cheaper than paying by debit or credit card. Some services charge differently depending on how you fund the transfer.
• Reliability and regulation — Use services that are licensed and regulated. In the EU, payment service providers must be authorised under the Payment Services Directive (PSD2). Check Banco de Portugal’s registry for authorised providers.

Documentation & AML Requirements

Portugal follows EU anti-money laundering (AML) regulations, which means banks and transfer services must verify your identity and may ask about the source of your funds.

Standard Requirements

• Identity verification — You will need to provide a valid ID document (passport, residence permit, or Cidadão Card) when creating an account or making a transfer.
• NIF — Your Portuguese tax identification number is required for bank transfers and most online services operating in Portugal.
• Proof of address — Some services require a recent utility bill or bank statement showing your Portuguese address.

Large Transfers

For large transfers, banks and services may request additional documentation:

• Proof of the source of funds (pay slips, sale contract, inheritance documentation)
• Explanation of the purpose of the transfer
• Employment contract or business registration

The specific thresholds that trigger enhanced due diligence are set by each institution in line with Banco de Portugal guidelines. Transfers above €1,000 require the provider to identify both sender and recipient. Larger amounts face progressively stricter scrutiny.

Tax Implications

Sending your own earned and declared income abroad is not itself a taxable event in Portugal. However, there are some situations where tax implications arise:

• Income must be declared first — The money you send should come from income that has been properly declared and taxed in Portugal (or legally exempt). If the Autoridade Tributária (tax authority) notices large transfers that do not match your declared income, they may open an investigation.
• Gifts and donations — Sending money as a gift to someone may be subject to Imposto do Selo (stamp tax) if the amount exceeds certain thresholds. The rules depend on the relationship between sender and recipient. Check with a tax adviser or the Portal das Finanças for current thresholds.
• Business payments — If you are paying foreign suppliers or contractors, these payments may need to be documented for tax purposes, and withholding tax may apply depending on the type of payment and any double taxation agreements.

Tips for Getting the Best Rate

• Compare before every transfer — Exchange rates and fees fluctuate. What was cheapest last month may not be cheapest today.
• Send larger amounts less frequently — Fixed fees per transfer mean that fewer, larger transfers are usually more cost-effective than many small ones (subject to transfer limits).
• Pay by bank transfer — Funding your transfer from your bank account is almost always cheaper than using a debit or credit card.
• Avoid airport and tourist exchange desks — These typically offer the worst exchange rates.
• Set rate alerts — Services like Wise and Revolut allow you to set alerts for when the exchange rate reaches a target you are happy with.
• Watch out for “zero fee” claims — If a provider advertises no transfer fee, they are almost certainly making their margin on the exchange rate. Always check the total amount the recipient will receive.
• Consider a multi-currency account — If you regularly deal with multiple currencies, a multi-currency account (Wise, Revolut) lets you hold and convert money when rates are favourable.

Common Mistakes to Avoid

• Only comparing fees, not exchange rates — The exchange rate markup is often the biggest cost. Always compare the total amount received.
• Using your bank for every international transfer — Banks are convenient but usually not the cheapest for non-SEPA transfers. Check online alternatives.
• Not having documentation ready — If you cannot prove the source of your funds, your transfer may be delayed or blocked. Keep pay slips and contracts organised.
• Sending money through informal channels — Unlicensed money transfer operators pose risks including loss of funds and legal consequences. Always use regulated services.
• Ignoring the recipient’s bank fees — The amount that arrives may be less than expected if intermediary or receiving banks deduct fees. Choose the “OUR” fee option for SWIFT transfers when possible, or use services that guarantee the received amount.

Common Questions

What is the cheapest way to send money from Portugal?

Online transfer services such as Wise, Remitly, and WorldRemit typically offer lower fees and better exchange rates than traditional bank wire transfers. Compare the total cost (fee plus exchange rate markup) for your specific corridor and amount before choosing. The cheapest option varies by destination country and transfer amount.

Do I need to declare money transfers from Portugal?

Under Portuguese and EU anti-money laundering rules, banks and transfer services report transactions above certain thresholds to the authorities. You may be asked to provide documentation proving the origin of the funds for large transfers. The thresholds and documentation requirements are set by Banco de Portugal — check their website for current rules.

How long does a bank transfer from Portugal take?

SEPA transfers within the EU typically arrive within one business day, and SEPA Instant transfers within seconds. SWIFT international transfers outside the EU generally take two to five business days depending on the destination country, intermediary banks, and the receiving bank’s processing time.

Can I send money from Portugal without a bank account?

Yes. Services like Western Union and MoneyGram allow you to send money from physical agent locations using cash. Some online services also accept debit card payments without requiring a Portuguese bank account, though having a bank account typically gives you access to lower fees.

Are there tax implications for sending money abroad from Portugal?

Sending your own earnings or savings abroad is not a taxable event in itself. However, the tax authority (Autoridade Tributária) may request documentation if large amounts are transferred, to verify the funds have been properly declared as income. If you are sending money as a gift above certain thresholds, stamp tax (Imposto do Selo) may apply. Consult the Portal das Finanças or a tax adviser for your specific situation.