Moving Your Money ... And Getting the Best Bang for Your Bucks! By Sarah Davie
Portugal is fast becoming a top destination for relocation. From the country’s warm climates, low crime levels, amazing stretches of Atlantic coastline to thriving cities, here is what non-EU nationals moving to Portugal should know. Within this journey, you will need to transfer money to pay for a property, invest in a visa, pay for permits and licenses, or move your savings. Traditionally, your bank would be your first point of call. However, it is always worth checking the exchange rate and fees. We usually see a 3-4% difference between a bank and an overseas money specialist. In some extreme instances, we have seen a bank charge 9%. An American customer was due to receive over £1 million from a UK lawyer. Fortunately, the customer asked the bank what exchange rate would be applied. The rate the bank offered was 9% away from the market rate. Thankfully, the client contacted an international currency converter that saved them over £90,000. While this example seems extreme, it is not uncommon. The other thing to bear in mind is that you will not know the exact rate at the time of transfer; the bank rate is not guaranteed. If the rate is unknown, how will you know how many US Dollars to send? What if you are sending money for a property purchase and the Euro amount is short? This could delay the purchase, and you then have the hassle of needing to send more money. Using an overseas money transfer specialist is similar to relying on an insurance broker, realtor or mortgage broker—all specialists in their fields. When you move to another country, you will need to transfer more money than usual. Exchanging $250,000 can be daunting … then there is the international IBAN–have you got the correct details? As is said, “the devil is in the details,” so you should expect your money transfer specialist to be readily available and accessible. You should be able to make transfers yourself online, or have the broker make the exchange for you. 46 Portugal Living Magazine
photo: moerschy/Pixabay
When moving money, it’s essential that your currency exchange broker double-check bank details and speak to bank tellers unfamiliar with international IBANs. You will also want to be continuously updated with the location of your money and be notified as soon as it’s in the beneficiary’s account. Helping to make the process stressfree—giving you peace of mind—must be a primary priority of currency transfer and exchange firms. Another important factor is exchange rate movements. Moving your money often figures low on your ‘to-do’ list; nonetheless, a rate movement can significantly impact the amount of money you receive in Euros and its cost in US Dollars. From March 2021 to May 2021, there was a 4% rate movement in the EUR/USD exchange rate. Buying €500,000 Cost in March = $585,550 Cost in May = $610,100 Difference $24,550 Buying €20,000 Cost in March = $23,422 Cost in May = $24,404 Difference = $982 Depending on these fluctuations, it may be advantageous to make a transfer before you need your Euros. Don’t worry if you do not have all the funds available; many currency brokers will allow you to fix the rate with a 10% deposit. Your personal dealer will explain the different options available to you, helping you buy at the right time and save money.
