One of the many steps to make an effective investment in Portugal is to transfer money to Portugal. Many clientes are concerned about taxes but neglect the fact that you can also loose a lot of money in this step. We would like to clarify the best options below. If you have doubts or questions do not hesitate to contact us.
It is good to remember that for a Gold Visa application you need to have money in a Portuguese bank account to pay your investment. You also need transfer the money from an account in your name to Portugal. The SEF will require a proof of the capital flow when you apply for the Gold Visa. The Portuguese bank will supply you with a certificate.
In order to prevent service providers from including costs indiscriminately in the exchange process, the financial institutions created the VET - Total Effective Value.
It represents the cost of a foreign exchange transaction in the chosen currency. The VET includes the exchange rate, fares, and taxes that are included in the transaction. This amount must be clear before finalizing the deal. Check it out for some key factors that you have to pay attention before transferring money abroad:
Having in mind all topics above you can begin the search for the better option to transfer the investment money. Everything above will have an influence on the final cost of your investment. What should be analyzed are the visible and invisible costs of each "item". Remember that in all cases, because the rates vary a lot without a survey, it is more difficult to arrive at an overall cost. However, there are some options that are simpler, and for this reason more indicated for cost reduction.
It is commonly agreed that this is one of the safest options, but depending on the amount you need to transfer it becomes the most expensive. Because it's calculated by the percentage the lower the value of the transaction the more expensive this option becomes. Having a good relationship with banking institutions makes it possible to negotiate the fees charged for this operation. However, it is important to request the VET from your manager. Be aware in which currency the bank fee is charged, because some may be charged in euro increasing the cost of the transaction. You can also ask your bank how many intermediate banks are involved. The more intermediates the more fees will be paid to increase the costs of the operation. Pay attention to the SWIFT rate.
What is SWIFT? It is a code created for international transactions aimed at increasing security. Traditional banks usually charge a fee for using this code. It is mandatory for each international account to have a SWIFT number.
Security first! This is the first aspect that must be observed. Check if the chosen company is authorized to make international transactions and if it is protected by the Federal Deposit Insurance Corporation FDIC in the US or Financial Conduct Authority FCA in the UK. Big companies are usually registered. However, there are some small companies that work with competitive rates to become attractive. When you receive an indication of one of these, check for registration to see if it fits the regulation. We also advise you to always do a good search to avoid abusive rates and false fees. Costs are similar to banks. The main difference is that some companies use fixed commissions and fixed fees making the cost lower than conventional banks when it comes to large amounts of money.
The digital revolution has affected all areas and the financial sector would be no different. With competitive rates and simplified processes, digital online transfer platforms have become a reference in the market. The main difference is how the commission will be charged. For example:
There are other similar options such as World Remit, HiFX, OFX, PayPal.
A question that still comes up frequently is: can I bring cash to Portugal? The answer is yes. You are allowed to travel with any amount of money. However, if you are entering or leaving the European Union carrying an amount over 10,000 euros, or its equivalent in a different currency, you are under a legal obligation to declare it at Customs. You can not do the golden visa investments via cash payment.
Comparing the methods, we list advantages and disadvantages:
We also did not include some options such as Travel Money, Correios, Check International for working with sending small amounts and in simulations, they was no suitability for the golden visa investment.
In general, the final rates are increased by 2.5% in the case of online transference against 10%-12% from the banks. The final cost varies according to the bank fees of both the beneficiary and the sender and how they are charged. We always recommend that you request the assistance of a specialist. Why? Because financial transactions require detailed legislative and financial knowledge so that the transaction is not categorized as a financial crime in your country. Despite being well regulated in most countries, some agencies do not correctly practice what the market rules leading some clients to fall into traps. Don’t forget to check the taxes that you have to pay in order to not having a problem applying for Golden Visa.
Despite the great care, we take over no responsibility for the topicality, correctness, completeness.