How to Send Money to Portugal From the UK: Best Money Transfer Services

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.

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.

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.

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.

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.

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.

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.

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.

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.

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