How to Navigate the European Market when Purchasing a Property in Portugal

Navigating the European market can be tricky, as it differs so much from the US. Depending on your budget and requirements, you can expect to find a great range of properties to suit your needs in Portugal. Whether you want the city life in Lisbon or a beachside haven in the Algarve, this European gem is growing in popularity for a reason.  According to the Portugal News website, in 2021, Foreigners purchased 11% of properties in Portugal.

 

Once you have found your perfect Portuguese property, it’s time to start the process of purchasing it. Leave the currency transferring to the experts so you can focus on enjoying your new European holiday home whether that be for investment or leisure.

Why choose a currency expert?

If this is the first time you will be transferring large amounts of money, you may feel apprehensive. That’s completely understandable. After all, transferring hundreds of thousands of dollars is a huge amount of money and needs to be handled as such. Using a currency expert will not only make the process simpler and more secure, but it can make your budget go further.

How to transfer funds securely

At some point in your buyer journey, you will be transferring a large amount of money to an overseas account. To put your mind at ease, choose a currency expert. We take protecting your money very seriously and partner with GC Partners who are authorised and regulated in the UK by the FCA.

How to get the best exchange rate

If you are buying a property in Portugal and need to transfer dollars to euros, there’s no doubt you will be watching the exchange rate closely. It’s a full-time job. In today’s unpredictable climate the exchange rate can change quickly. We offer a range of options that allow you to get the most for your money. Currency is our entire business focus, and we can get the best exchange rates on the market.

When to transfer your funds

As with most international property purchases, you will likely pay the funds into a notary’s account by a certain deadline. This can be done through Moving Currency and the entire process can be set up well in advance.

Spot Contracts

Sometimes property moves quickly. When that happens, a spot contract can be arranged. This is when the current market price for changing dollars to euros is offered for immediate delivery. It is the only real option for a quick sale. Your transfer will be made immediately at the current market rate.

However, in the world of property things rarely move quickly as you could miss out on the best exchange rates as you will be locked in until the date of transfer.

Forward Contracts

Forward contracts allow you to fix the exchange rate for up to two years. This is a popular choice for property buyers as when the day of completion comes, the rate is fixed, and you know what to expect in terms of fees in advance. Regardless of the current rate, your fixed-rate will be honoured.

You have peace of mind that you will not be spending more than you thought, and exchange rate increases won’t affect you for up to 2 years.

Limit Orders

Limit orders allow us to do what we do best and track the market for you. This is great for clients who have a more flexible budget and time frame. You decide on an exchange rate that you are comfortable with and as soon as the market hits that, we will purchase the euros for you automatically.

You can download our detailed property guides here.

Setting up Regular Overseas Payments

Once everything has gone through, our relationship doesn’t end there. We can arrange regular payments to be made from your currency exchange account. Whether it is for mortgage payments, bills, or school fees. No need to set a reminder or worry about late payment fees. We can make sure your money gets to where it needs to be. You can open an account online and have 24/7 access to your up-to-date transactions.

Tips to help your purchase run smoothly:

·       If you don’t speak Portuguese, hire a translator, or hire legal representation in Portugal

·       Get a CPCV. This is a pre-sale agreement that is not mandatory but will make everything easier down the line

·       This final stage must take place through a notary office (notário). It must be legally witnessed. If you cannot make it yourself, you can assign a representative under Portuguese law

·       Check the local taxes and fees in advance so you can budget accurately. Notary fees, registry fees and transfer tax are all applicable in Portugal.

·       If your property is worth over €500,000, you are eligible for the ‘Golden Visa’ which is a 5-year residency permit.

Moving Currency sees overseas payments differently. For a tailored experience and a personal account manager that understands your needs, get in touch today.